Bfbl 602 — Seminar 4 Answers
BFBL602 — Seminar 4 AnswersQuestion 6 ‚Äď Mars plcStatement of financial position as at 31 December 20X2Assets¬£¬†¬†¬†¬†¬†¬†¬†¬†¬£Non-current assets [330,000 + 157,500]¬†¬†¬†¬†¬†¬†¬†¬†487,500Goodwill (W2)¬†¬†¬†¬†¬†¬†¬†¬†37,100Current assetsInventories [(225,000 + 67,500) – 3,000 (W3)]¬†¬†¬†¬†¬†¬†¬†¬†289,500Trade receivables [180,000 + 90,000]¬†¬†¬†¬†¬†¬†¬†¬†270,000Bank [36,000 + 18,000]¬†¬†¬†¬†¬†¬†¬†¬†¬† 54,000¬† 613,500Total assets¬†¬†¬†¬†¬†¬†¬†¬†1,138,100Equity and liabilitiesCapital and reservesIssued capital¬†¬†¬†¬†¬†¬†¬†¬†196,000General reserve [245,000 + 10,800 (W7)]¬†¬†¬†¬†¬†¬†¬†¬†255,800Retained earnings [222,000 (W5) + 44,000 (W4)]¬†¬†¬†¬†¬†¬†¬†¬†266,000717,800Non-controlling interest (W6)¬†¬†¬†¬†¬†¬†¬†¬†51,300Current liabilitiesTrade payables [283,500 + 40,500]¬†¬†¬†¬†¬†¬†¬†¬†324,000Taxation [31,500 + 13,500]¬†¬†¬†¬†¬†¬†¬†¬†¬† 45,000¬† ¬†369,0001,138,100Consolidated statement of income for the year ending 31 December 20X2¬£Sales [1,440,000 + 270,000 – 18,000]¬†¬†¬†¬†¬†¬†¬†¬†1,692,000Cost of sales [1,045,000 + 135,000 – 18,000 + 3,000 (W3)]¬†¬†¬†¬†¬†¬†¬†¬†1,165,000Gross profit¬†¬†¬†¬†¬†¬†¬†¬†527,000Expenses [123,500 + 90,000]¬†¬†¬†¬†¬†¬†¬†¬†¬†213,500Profit before tax¬†¬†¬†¬†¬†¬†¬†¬†313,500Taxation [31,500 + 13,500]¬†¬†¬†¬†¬†¬†¬†¬†¬† 45,000Profit after tax¬†¬†¬†¬†¬†¬†¬†¬†268,500Attributable to:Equity shareholders in Mars¬†¬†¬†¬†¬†¬†¬†¬†262,200Non-controlling interest [20% √ó ¬£31,500]¬†¬†¬†¬†¬†¬†¬†¬†¬† ¬† 6,300268,500W1: Cancel inter-company balances‚Äʬ†¬†¬†¬†¬†¬†¬†¬†Current accounts of ¬£22,500W2:¬†¬†¬†¬†¬†¬†¬†¬†Goodwill¬£¬†¬†¬†¬†¬†¬†¬†¬†¬£Investment in Jupiter¬†¬†¬†¬†¬†¬†¬†¬†187,500¬£1 Ordinary shares [80% √ó 90,000]¬†¬†¬†¬†¬†¬†¬†¬†72,000Accumulated profits [80% √ó 80,000]¬†¬†¬†¬†¬†¬†¬†¬†64,000General reserve [80% √ó 18,000]¬†¬†¬†¬†¬†¬†¬†¬†14,400

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