In: Accounting
Date | Particulars | Debit ($) | Credit ($) | |
Investment in son | 20000000 | |||
Bank | 20000000 | |||
(To record investment made in Son company) | ||||
Entry on the year end: | ||||
Date | Particulars | Debit ($) | Credit ($) | |
Bank | 300000 | |||
Dividend from son | 300000 | |||
(To record dividend received from son) | ||||
Dividend from son | 300000 | |||
Investment in son | 300000 | |||
(To record acwuisition dividend reducing the value of the investment) | ||||
Goodwill | 2900000 | |||
Profit & loss | 2900000 | |||
(To record goodwill created) | ||||
Pariculars | Date of Acquistion | Date of consolidation | Retained Earnings | |
Equity Shares | 12800000 | 12800000 | - | |
Retained Earning | 3200000 | 3200000 | - | |
Profits | - | 1700000 | 1700000 | |
Revaluation of Building | 5000000 | 5000000 | ||
Depreciation on the aove | - | -500000 | -500000 | |
Net assets | 21000000 | 22200000 | 1200000 | |
Percentage | 80% | 20% | 80% | |
Share of Net assets | 16800000 | 4440000 | 960000 | |
Rectified value of investment | 19700000 | |||
Goodwill | 2900000 |