Question: please help to solve this question,the whole question 2 Question 2 ( 60 marks) The following trial balances of Able Ltd, Bable Ltd and Cable

 please help to solve this question,the whole question 2 Question 2

( 60 marks) The following trial balances of Able Ltd, Bable Ltd

and Cable Ltd are provided for the vear ended 30 June 20.21

please help to solve this question,the whole question 2

Question 2 ( 60 marks) The following trial balances of Able Ltd, Bable Ltd and Cable Ltd are provided for the vear ended 30 June 20.21 : Additional information: 1. Able Ltd acquired control of Bable Ltd by acquiring 80% of the ordinary shares in Bable Ltd on 1 January 20.20 and paid cash of R65 000 for the investment. At that date, the equity of Bable Ltd was as follows: 2. Bable Ltd acquired control of Cable Ltd by acquiring 16800 ordinary shares in Cable Ltd on 1 July 20.20 and paid R35 000 for the investment. On the date of acquisition, the fair value of the assets and liabilities of Cable Ltd were as fnllnwes: These fair value adjustments were not recorded in the separate financial records of Cable Ltd. 3. Able Ltd sold machinery to Bable Ltd on 1 January 20.21 for R45 000 . The sale was made at cost plus 20%. Bable Ltd depreciates machinery at 20% per annum on the straight line method. This is the same policy as used by SA revenue authority. 4. At 30 June 20.21 the directors of Able Ltd decided that the goodwill that arose on the acquisition of Bable Ltd had been impaired by R6 000. 5. Able Ltd and Bable Ltd measure their investments in subsidiaries in their separate accounting records at cost price in accordance with IAS 27 , separate financial statements. 6. The SA normal tax rate is 28% and capital gains tax is calculated at 80% thereof. You may assume that both the tax rates have remained unchanged since 1 January 20.20 7. Each share carries one vote and the issued share capital of all the entities in the group remained unchanged since 1 January 20.20

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!