XYZ Ltd. acquires ABC Ltd. as at 31^st January, 2020. At that date the assets and liabilities of Imani Ltd. were as follows:

 

Pendo Ltd. paid a consideration of Shs. 25,000,000.00 and acquired 80% of Imani Ltd. 

Required: 

1. Value of Net assets                                                                                     
2. Goodwill on acquisition of Imani Ltd.        

Transcribed Image Text:

Item Land and Building Motor Vehicle Furniture and Fittings Debtors Cash at Bank / (Bank Overdraft) Creditors Bank Loans Shs. 10,000,000.00 3,000,000.00 800,000.00 200,000.00 (200,000.00) 1,850,000.00 1,000,000.00 Item Land and Building Motor Vehicle Furniture and Fittings Debtors Cash at Bank / (Bank Overdraft) Creditors Bank Loans Shs. 10,000,000.00 3,000,000.00 800,000.00 200,000.00 (200,000.00) 1,850,000.00 1,000,000.00

Answer rating: 100% (QA)

Given that Pendo Ltd acquired 80 of Imani Ltd we will consider the fair value of 80 of the assets an... View the full answer