Statements of Financial Position as at 30 June 2005. ASSETS Property at cost/valuation Machinery @Cost Accumulated...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Statements of Financial Position as at 30 June 2005. ASSETS Property at cost/valuation Machinery @Cost Accumulated depreciation Plant at carrying amount Investments in Chinks: 80 000 ordinary shares at fair value(cost price N$650 000) • 25 000 12% cumulative preference shares at fair value (cost price N$40 000) 9% Debentures (since 2003) Unsecured loan at fair value Current Account-Bensam Inventory Trade and other receivables Bills receivable-Chinks Bank-NBS Bank EQUITY AND LIABILITIES Ordinary shares at N$5 each Ordinary shares at N$2 each 12% Cumulative preference shares at 75c each Revaluation of property Retained earnings Interest bearing borrowings 9% debentures Loan Bensam . Current Account-Chinks Trade and other payables Bills payable-Bensam Bank overdraft-NBS Bank Shareholders for dividends-Ordinary shares Preference shares (current year) Bensam NS 750 000 340 000 500 000 (160 000) 680 000 650 000 40 000 50 000 80 000 170 000 220 000 20 000 30 000 3 030 000 900 000 1816 750 64 750 64 750 220 000 . 28500 3 030 000 Chinks NS 400 000 160 000 240 000 (50 000) 370 000 75 000 150 000 260 000 1445 000 500 000 75 000 150 000 306 000 170 000 100 000 70 000 140 000 25 000 60 000 10000 9000 1445 000 Additional Information: 1. Bensam acquired its interest in Chinks on 1 January 2002. At that date the retained earnings of Chinks amounted to NS120 000. On the same day the property of Chinks which had a carrying amount of N$250 000 was revalued at N$350 000. It is company policy to revalue Chinks' property on 30 June every second year. Since 1 July 2002 Chinks has not purchased or sold any property. At the date of acquisition, consider the carrying amount of all the other assets and liabilities of Chinks to be equal to the fair value thereof. 2. No dividend was declared or paid by Chinks during the period 1 July 2001 and 30 June 2002 3. Assume each ordinary share carries one vote. 4. Its group policy to show goodwill at cost in the financial statements. 5. Since September 2002, Chinks purchased all its inventories from Bensam at the normal selling price, determined by Bensam which is cost plus 20%. 6. Chinks sold a machine to Bensam on 1 January 2004 at a profit of N$25 000. The group provides for depreciation at 20% per annum according to the reducing balance method. 7. Bensam discounted the N$5 000 of the Bills receivable from Chinks at the bank before the expiry date of 31 July 2005. 8. On 29 June 2005, Chinks repaid N$10 000 of the existing loan from Bensam. Bensam received the repayment on 7 July 2005. 9. The parent guarantees the overdraft of the subsidiary's bank account. 10. Ignore tax implications Required: Marks Prepare the consolidated Statement of financial position of Bensam and its 30 subsidiary as at 30 June 2005 according to the requirements of IFRS. showing all necessary workings as they carry marks. Statements of Financial Position as at 30 June 2005. ASSETS Property at cost/valuation Machinery @Cost Accumulated depreciation Plant at carrying amount Investments in Chinks: 80 000 ordinary shares at fair value(cost price N$650 000) • 25 000 12% cumulative preference shares at fair value (cost price N$40 000) 9% Debentures (since 2003) Unsecured loan at fair value Current Account-Bensam Inventory Trade and other receivables Bills receivable-Chinks Bank-NBS Bank EQUITY AND LIABILITIES Ordinary shares at N$5 each Ordinary shares at N$2 each 12% Cumulative preference shares at 75c each Revaluation of property Retained earnings Interest bearing borrowings 9% debentures Loan Bensam . Current Account-Chinks Trade and other payables Bills payable-Bensam Bank overdraft-NBS Bank Shareholders for dividends-Ordinary shares Preference shares (current year) Bensam NS 750 000 340 000 500 000 (160 000) 680 000 650 000 40 000 50 000 80 000 170 000 220 000 20 000 30 000 3 030 000 900 000 1816 750 64 750 64 750 220 000 . 28500 3 030 000 Chinks NS 400 000 160 000 240 000 (50 000) 370 000 75 000 150 000 260 000 1445 000 500 000 75 000 150 000 306 000 170 000 100 000 70 000 140 000 25 000 60 000 10000 9000 1445 000 Additional Information: 1. Bensam acquired its interest in Chinks on 1 January 2002. At that date the retained earnings of Chinks amounted to NS120 000. On the same day the property of Chinks which had a carrying amount of N$250 000 was revalued at N$350 000. It is company policy to revalue Chinks' property on 30 June every second year. Since 1 July 2002 Chinks has not purchased or sold any property. At the date of acquisition, consider the carrying amount of all the other assets and liabilities of Chinks to be equal to the fair value thereof. 2. No dividend was declared or paid by Chinks during the period 1 July 2001 and 30 June 2002 3. Assume each ordinary share carries one vote. 4. Its group policy to show goodwill at cost in the financial statements. 5. Since September 2002, Chinks purchased all its inventories from Bensam at the normal selling price, determined by Bensam which is cost plus 20%. 6. Chinks sold a machine to Bensam on 1 January 2004 at a profit of N$25 000. The group provides for depreciation at 20% per annum according to the reducing balance method. 7. Bensam discounted the N$5 000 of the Bills receivable from Chinks at the bank before the expiry date of 31 July 2005. 8. On 29 June 2005, Chinks repaid N$10 000 of the existing loan from Bensam. Bensam received the repayment on 7 July 2005. 9. The parent guarantees the overdraft of the subsidiary's bank account. 10. Ignore tax implications Required: Marks Prepare the consolidated Statement of financial position of Bensam and its 30 subsidiary as at 30 June 2005 according to the requirements of IFRS. showing all necessary workings as they carry marks.
Expert Answer:
Answer rating: 100% (QA)
To prepare the consolidated Statement of Financial Position of Bensam and its subsidiary as at 30 June 2005 we need to consolidate the assets liabilities and equity of both entities Well follow the re... View the full answer
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
Posted Date:
Students also viewed these accounting questions
-
Statements of financial position for Janxen Jeans Company for 2011 and 2010 follow: JANXEN JEANS COMPANY Comparative Statement of Financial Position Additional information: 1. Net earnings during...
-
The summarized statements of financial position as at 31 March 20X1 and 31 March 20X2 of Higher Ltd are as follows: Additional information 1. Non-current assets Non-current assets disposed of during...
-
The following are the statements of financial position as at 31 December 2019 Keris RM'000 Tombak RM'000 Meriam RM'000 Ordinary share capital 14400 8000 1280 Retained profit 480 576 400 Profit for...
-
Suppose the following game is repeated once (that is, played twice in total). Bridget Alex SB (40,40) (70,20) SA SA (20, 70) (30,30) (a) How many strategies does Alex have? (b) In an SPNE, what...
-
Given the following probability distributions: a. Compute the expected value for each distribution. b. Compute the standard deviation for each distribution. c. Compare the results of distributions A...
-
The expenditures per pupil for selected states are listed below. Based on these data, what do you think of the claim that the average expenditure per pupil in the United States exceeds $10,000? Find...
-
Exercise 3.58 describes a study in which college students found it unpleasant to sit alone and think. The same article describes a second study in which college students appear to prefer receiving an...
-
The following information relates to the retail inventory method used by the Jeffress Company: Required Compute the ending inventory by the retail inventory method, using the following cost flow...
-
If a firm has fixed costs of $66000 a variable cost per unit of $3 and sales price per unit of $17 what is the firm break-even point in units?
-
Calculate Federal Income Tax Withholding Using Two Methods (pre-2020 Form W-4) For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax...
-
What is the 'lookup' feature used for in sage 50?
-
Based on the ICs primary considerations for a combined portfolio, which simulated hedge fund strategy portfolio in Exhibit 1 creates the most suitable combined portfolio? A. Merger arbitrage B....
-
Recommend an alternative hedging strategy that will keep the hedge ratio close to the target hedge ratio. Identify the main disadvantage of implementing such a strategy. Kamala Gupta, a currency...
-
Discuss two estate planning objectives revealed in Hinkles discussion with Enlow. Enlow wants to transfer some of his wealth to his niece and nephew but isnt sure whether he should use lifetime gifts...
-
Recommend a strategy, alternative to an outright sale of the shares, that will satisfy Omos goals and alleviate his concern. Tesando Omo is a highly successful entrepreneur. The software company that...
-
Which of the benefits of outsourcing the management of the pension plan suggested by Boulder is correct? A. Benefit 1 B. Benefit 2 C. Benefit 3 William Azarov is a portfolio manager for Westcome...
-
Consider a simple paging system with a page size of 2,048 bytes. 1. What is the worst amount (in bytes) of internal fragmentation that can occur? 2. What is the average amount (in bytes) of internal...
-
A glass manufacturer produces hand mirrors. Each mirror is supposed to meet company standards for such things as glass thickness, ability to reflect, size of handle, quality of glass, color of...
-
Describe the three major categories of activities that are shown on the statement of cash flows. Discuss.
-
In the middle of January, 2012, Mark Mbeke, the owner of Mbeke's Hardware Store, decided to expand the business by buying out a local lumberyard. To finance the purchase, Mark had to obtain financing...
-
Financial statement data for Metro Moving Company for 2011 follow: METRO MOVING COMPANY Comparative Statement of Financial Position METRO MOVING COMPANY Statement of Earnings For the year ended...
-
The following figures relate to the production of product X: If the years production is 20,000 units and this product uses 25 per cent of total factory production, the unit cost for product X in...
-
A company buys and sells units of product P as follows: Under a FIFO method, the gross profit on the sold item is: A. :20. B. :24. C. :25. D. :30. 1 January buy 2 at 30 1 February 1 March buy 3 at 40...
-
If the company in 10b uses the weighted average method, the gross profit is: A. :20. B. :24. C. :25. D. :30.
Study smarter with the SolutionInn App