Ruth Ltd has a 30% investment in Abraham Ltd, which it had acquired four years ago on_ 1 July 2008. The cost of acquisition was $660 000. At that date, all the assets and liabilities of Abraham Ltd were recorded at fair value. Ruth Ltd is a parent company.
In the current period, Abraham Ltd distributed $300 000 dividends from the current period profit In the previous periods, $200 000 had been distributed as dividends.
Equities of Abraham Ltd at:
Purchase date Start of current year End of the current year
$000 $000 $000
Share capital 1200 1200 1200
Reserves 800 800 800
Retained profits 200 700 800
Revaluation surplus 200 345
Required:
Prepare the equity accounting joumal entries for the year ending 30 June 2012.

Answer rating: 100% (QA)

Step 1 Step 1 Journal entry It is th... View the full answer