Question 1: Using the information from Pope plc account, state the value of minority interest in consolidated statement of financial position of the Pope plc group immediately after the acquisition, on 1st February 2020.

Question 2:Using the information from Pope plc account, state the value of retained earnings and reserves in the consolidated statement of financial position of the Pope plc group immediately after the acquisition, on 1st February 2020.

Question 3:Using the information from Pope plc account, calculate the value of share capital in the consolidated balance sheet?

 

 

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Pope plc purchased 80% of the voting-share capital of Jon Ltd on 1st February 2020 paying £190,000 for the shares of Jon Ltd. The Statements of Financial Position of Pope plc and Jon Ltd just after the acquisition showed the following: Pope Jon Plc Ltd £ £ Non-current assets: • Property, plant & equipment • Investment in Jon Ltd Current assets Non-current liabilities Current liabilities Equity: • Share Capital • Retained earnings and reserves 620,000 140,000 190,000 45,000 105,000 855,000 245,000 250,000 75,000 120,000 30,000 435,000 125,000 50,000 15,000 855,000 245,000 In preparing the consolidated statement of financial position the following was revealed: Jon Ltd non-current assets are recorded at their original cost. On the date of acquisition the fair value of these assets was estimated to be £150,000. Pope plc purchased 80% of the voting-share capital of Jon Ltd on 1st February 2020 paying £190,000 for the shares of Jon Ltd. The Statements of Financial Position of Pope plc and Jon Ltd just after the acquisition showed the following: Pope Jon Plc Ltd £ £ Non-current assets: • Property, plant & equipment • Investment in Jon Ltd Current assets Non-current liabilities Current liabilities Equity: • Share Capital • Retained earnings and reserves 620,000 140,000 190,000 45,000 105,000 855,000 245,000 250,000 75,000 120,000 30,000 435,000 125,000 50,000 15,000 855,000 245,000 In preparing the consolidated statement of financial position the following was revealed: Jon Ltd non-current assets are recorded at their original cost. On the date of acquisition the fair value of these assets was estimated to be £150,000.

Answer rating: 100% (QA)

Answers and Explanation 1 To determine the value of minority interest we need to calcula... View the full answer