Essay About W2 And Non-Current Assets

Bfbl 602 — Seminar 4 Answers
BFBL602 — Seminar 4 AnswersQuestion 6 – 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% × £31,500]            6,300268,500W1: Cancel inter-company balances•        Current accounts of £22,500W2:        Goodwill£        £Investment in Jupiter        187,500£1 Ordinary shares [80% × 90,000]        72,000Accumulated profits [80% × 80,000]        64,000General reserve [80% × 18,000]        14,400