Accounting Assignment | Custom Assignment Help

ABC Ltd made a takeover bid for all the issued voting shares of XYZ Ltd offering three ABC Ltd shares for every two XYZ Ltd shares. The offer from ABC Ltd was accepted by 90% of the shareholders of XYZ Ltd. The date control was obtained by ABC Ltd was deemed to be 1 January 20X7. The following information is available.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

(a) Shareholders’ equity of XYZ Ltd at balance date on 31 December 20X6:

  •                                                                                                               $000
  • Share capital (200,000) shares                                                         200
  • General reserve                                                                                    300
  • Retained earnings                                                                               150
  •                                                                                                                 650
  • (b) Market value of each entity’s shares at 1 January 20X7
  • ABC Ltd                                                                                                 $3.20
  • XYZ Ltd                                                                                                 $4.00

Custom Assignment Help

(c) In XYZ Ltd’s accounting records, land was stated at $200,000 below its cost to the group. This is to be accounted for as a consolidation adjustment. Statements of comprehensive income and statements of financial position of ABC Ltd and XYZ Ltd for the year ended 31 December 20X8 are as follows:

Statements of Comprehensive Income

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

                                                                            ABC Ltd                  XYZ Ltd

$000                   $000

  • Sales                                                                         5000                   2000
  • Cost of sales                                                            2570                   1025
  • Gross profit                                                              2430                    975
  • Dividend revenue                                                      252                        –
  •                                                                                    2682                    975
  • Expenses                                                                  2057                    300
  • Operating profit before tax                                       625                   675
  • Income tax expense                                                 280                     260
  • Operating profit after tax                                          345                     415

                                                                            ABC Ltd           XYZ Ltd

$000                 $000

  • Retained earnings at 1.1.X8                                    294                   200
  • Profit for the year                                                       345                   415
  • Interim dividend paid                                              (100)                 (150)
  • Final dividend declared                                         (160)                 (200)
  • Retained earnings at 31.12.X8                               379                   265

Statements of Financial Position

                                                                            ABC Ltd           XYZ Ltd

$000                 $000


Current assets

Other current assets                                       385                   395

Total current assets                                                  385                   395

Non-current assets

Property, plant and equipment                      550                   750

Investments                                                      864                        –

Total non-current assets                                        1414                   750

Total assets                                                              1799                 1145


Current liabilities

Trade and other payables                                 60                   180

Provision for final dividend                                      160                   200

Total current liabilities                                              220                   380

Total liabilities                                                            220                   380

Net assets                                                                1579                   765

Shareholder’s equity

Share capital                                                            1200                   200

General reserve                                                             –                   300

Retained earnings                                                    379                   265

Total equity                                                              1579                   765

Additional information

(a) ABC Ltd records dividend revenue in the accounting period when the cash is received.

(b) The final dividend declared by XYZ Ltd for the 20X7 year was $130,000 and it was paid on 1 March 20X8.

(c)  Impairment losses for goodwill arising on acquisition had not been recognised in any of the previous years’ consolidated financial statements. The directors of ABC Ltd are of the opinion an impairment loss of $10 000 will be recognised in relation to its investment in XYZ Ltd in the consolidated financial statements for the year ended 31 December 20X8.

(d) Inter-company sales for 20X8

        Cost         Sales Price

From ABC and XYZ                            $300 000            $500 000

From XYZ to ABC                               $200 000            $350 000

(e) In relation to the inventory sales in (d) above, inventory held by ABC Ltd and purchased from XYZ Ltd is as follows:

        Cost         Sales Price

i.       As at 1 Jan 2008                              $50 000            $120 000

ii.       As at 31 Dec 2008                           $75 000            $150 000

(f)   The rate of company income tax is 30%.

(g) Assume the directors of ABC Ltd have adopted the full goodwill method.


(a) For the accounting records of ABC Ltd show the general journal entries to record:

i.       the acquisition of the shares in XYZ Ltd on 1 January 20X7.

ii.       the dividend received from XYZ in 20X8 but proposed by XYZ Ltd in 20X7; and

iii.       the interim dividend received from XYZ Ltd in 20X8.

(3 marks)

(b) Prepare the consolidated financial statements at 31 December 20X8.

Show all consolidation journal entries and a worksheet and all workings for the calculation of NCI.

The consolidated financial statements should be presented in the same manner your textbook presents them.

(20 marks)

(c) Explain the partial and the full goodwill methods. In your discussion list the advantages and disadvantages of using each method. (2 marks)

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Super professional and highly qualified. Excellent customer service.
Customer 462485, May 29th, 2022
English 101
Good. However, always manually proofread,
Customer 460547, April 25th, 2022
Well researched
Customer 463679, April 15th, 2023
The work was done on time and is better than I could have imagined.
Customer 454439, June 1st, 2020
Construction Management
Customer 463153, July 14th, 2022
Thanks for the amazing PPT!!!!
Customer 454007, June 8th, 2020
well done
Customer 463813, April 19th, 2023
Excellent work
Customer 456821, March 28th, 2022
good job
Customer 463813, April 11th, 2023
Excellent work!
Customer 463337, April 18th, 2023
Awesome job, thanks for the quality work!!!
Customer 453939, February 15th, 2020
Thank you for following all instructions. Good piece
Customer 463337, March 1st, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat