The Big Group has established a new subsidiary, Rotto Ltd, in Bogoland where the unit of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Big Group has established a new subsidiary, Rotto Ltd, in Bogoland where the unit of currency is the Bogo. The new company was set up in 31 December 20X3 when its balance sheet was as follows: Bogos Exchange E Rate Share capital 1,000,000 shares of 1 Bogo 10 100.000 L000.000 Fixed Assets at Cost 1.200,000 10 120,000 Cash 300,000 10 30,000 Less Long Term Loan (500.000) 10 (50.000) 1000.000 100 000 The company's Profit and Loss Account for the year ended 31 December 20X4 and its balance sheet at that date, both in Bogos are as follows: Bogos 1,500,000 Profit and loss account for the year ended (150000) 31 December 20x4 Fixed assets at cost Less Ace'd depreciation Bogos Bogos 5,000,000 500,000 Sales Stock Trade debtors Cash 300,000 450,000 Opening stock (300000) Purchases 2.300.000 Less Closing stock 1500000) Trade creditors 3,500,000 3.000,000 Share capital Retained carnings Long-term loan Gross profit Depreciation Other expenses Net profit 2,000,000 (150,000) 1.050.000) 1,000,000 800,000 500.000 800.000 2,300,000 The following information is relevant: (1) 31 December 2004 1£ = 8 Bogos Average for the year IE =9 Bogos (2) Depreciation poliey is 10% straight line method. There were no fixed asset disposals during the year. A full year of depreciation is provided in the year of addition. when Fixed Asset was purchased IE = 9 Bogos when Closing Stock was purchased I£ =8Bogos REQUIRED: a) Translate the financial statements of Rotto Ltd to E's sterling for the year ended 31 December 20X4 using (1) Temporal method and (2) the closing rate method. b) In (2) closing rate method, analyse the difference arising on exchange, and identify the treatment of exchange difference under IAS 21 when the closing rate method is used. The Big Group has established a new subsidiary, Rotto Ltd, in Bogoland where the unit of currency is the Bogo. The new company was set up in 31 December 20X3 when its balance sheet was as follows: Bogos Exchange E Rate Share capital 1,000,000 shares of 1 Bogo 10 100.000 L000.000 Fixed Assets at Cost 1.200,000 10 120,000 Cash 300,000 10 30,000 Less Long Term Loan (500.000) 10 (50.000) 1000.000 100 000 The company's Profit and Loss Account for the year ended 31 December 20X4 and its balance sheet at that date, both in Bogos are as follows: Bogos 1,500,000 Profit and loss account for the year ended (150000) 31 December 20x4 Fixed assets at cost Less Ace'd depreciation Bogos Bogos 5,000,000 500,000 Sales Stock Trade debtors Cash 300,000 450,000 Opening stock (300000) Purchases 2.300.000 Less Closing stock 1500000) Trade creditors 3,500,000 3.000,000 Share capital Retained carnings Long-term loan Gross profit Depreciation Other expenses Net profit 2,000,000 (150,000) 1.050.000) 1,000,000 800,000 500.000 800.000 2,300,000 The following information is relevant: (1) 31 December 2004 1£ = 8 Bogos Average for the year IE =9 Bogos (2) Depreciation poliey is 10% straight line method. There were no fixed asset disposals during the year. A full year of depreciation is provided in the year of addition. when Fixed Asset was purchased IE = 9 Bogos when Closing Stock was purchased I£ =8Bogos REQUIRED: a) Translate the financial statements of Rotto Ltd to E's sterling for the year ended 31 December 20X4 using (1) Temporal method and (2) the closing rate method. b) In (2) closing rate method, analyse the difference arising on exchange, and identify the treatment of exchange difference under IAS 21 when the closing rate method is used.
Expert Answer:
Answer rating: 100% (QA)
Solution Journal Entbries Acrount ditles and Exploncetion Debit Date hedit August 2013 C... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
Posted Date:
Students also viewed these accounting questions
-
Prepare Profit and Loss account for the year ended 31st March, 2011 and Balance Sheet of the Bank as at that date. Profit an Loss Account on 1.4.2016 (e) AIssued Capital (Equity shares of? 100 each)S...
-
A skeleton of Katheys Florals balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Katheys Florals balance sheet: a. Debt ratio is 0.56. b. Current ratio...
-
A skeleton of Pine Florals' balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Pine Florals' balance sheet: a. Debt ration is 0.58. b.Current ration is...
-
Pepsin is the principal digestive enzyme of gastric juice. A 1.40 g sample of pepsin is dissolved in enough water to make 4.50 mL of solution. The osmotic pressure of the solution is found to be...
-
Assume the same facts as in Exercise, but in addition, assume that Saratoga is itself in need of cash. It discounts the note received from Windsor at First Bank on July 1, 2013, at a discount rate of...
-
(a) For the finite state machine given in Table 7.7, determine a minimal machine that is equivalent to it. (b) Find a minimal string that distinguishes states s4 and s6. Table 7.7 S2 7 0 0 S3 S5 S6 S4
-
In Example 8.6, suppose both people pull on the same end of the rope, each exerting a force \(F\), while the other end is still tied to the tree. Is the tension in the rope larger than, equal to, or...
-
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Selected accounts and related amounts for Clairemont Co. for...
-
6. An annular disk of mass M, inner radius a and outer radius b is placed on a horizontal surface with coefficient of friction , as shown in the figure. At some time, an impulse Jox is applied at a...
-
The accompanying data file shows the net profit (Net_Profit) counter sales (Counter_Sales), and drive-through sales (Drive_Sales) for a chain of 100 fast-food restaurants. All variables are measured...
-
a) Describe the financial position of an entity in terms of the basic elements of the accounting equation. (3 Marks) b) You have been presented with the following information for Zanele Traders that...
-
this code is in java please use IntelliJ IDEA. thank you very much. ill like if it works!! Part 2: BankAccount [4 points] Problem Description: Write a program to perform the following Bank...
-
Create Java Project named MultipleQueueProject in order to implement a new data structure called MultipleQueueClass for maintaining two queues A and B at the same time (in case you have two counter...
-
The common stock of the Nicolas Corporation is currently selling at K80 per share. The leadership of the company intends to pay a K4 per share dividend next year. With the expectation that the...
-
There is two coding should be adjusted. I share below my codings and test failure message at the end. 1. Traversals.java 2. TreeNode.java Tree Traversals Forthisassignment, you will implement 3...
-
This is java assignment, I really no have clue please help me on this assignment , I gave you everything you need to make this program please the output look exactly the same as display in right side...
-
Compare two HR challenges in 2023 and their effect on HR in the next 5 years. How will they will impact employers and employees and how will these challenges be viewed and possibly overcome by...
-
Reichenbach Co., organized in 2018, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2018 and 2019. Instructions...
-
Patterson Golf Company has requested that you perform a vertical analysis of its balance sheet to determine the component percentages of its assets, liabilities, and stockholdersequity. A1 Patterson...
-
Tucson Bancshares has 34,000 shares of $3 par common stock outstanding. Suppose Tucson declares and distributes an 8% stock dividend when the market value of its stock is $20 per share. 1. Journalize...
-
Assume that Fallon Sales Company completed the following note-payable transactions: 2014 Apr 1 Purchased delivery truck costing $58,000 by issuing a one-year, 4% note payable. Dec 31 Accrued interest...
-
Pucks 1 and 2 slide on ice and collide. The inertia of puck 2 is twice that of puck 1 . Puck 1 initially moves at \(1.8 \mathrm{~m} / \mathrm{s}\); puck 2 initially moves at \(0.20 \mathrm{~m} /...
-
While designing a conveyor belt system for a new airport, you determine that, when a typical suitcase is moving up an incline of \(20^{\circ}\), the magnitude of the maximum forward acceleration a...
-
Each diagram in Figure 10. 24 indicates the momentum of an object before and after a single force is exerted on it. For each case determine the direction of the force. Data from Figure 10 . 24 (a)...
Study smarter with the SolutionInn App