Redcliff Ltd acquired the entire share capital of ABC Ltd for $18,000 cash on 31 December 20X4. The balance sheets of the two companies as at that date were as follows:           Redcliff Ltd                                                                             ABC Ltd $ $ $ Current assets 240,000                                                        28,800 Non-current assets: Investment in ABC at cost 18,000 Other asset 96,000 114,000 9,600 Total assets 354,000 38,400 Current liabilities 198,000 20,400 Net assets 156,000 18,000 Paid-up capital 120,000 12,000 Retained profits 36,000 6,000 Owners’ equity 156,000 18,000 Required: Prepare the consolidated balance sheet of Redcliff Ltd and its subsidiary as it 31 december 20X4.

Odom Ltd purchased a 30% shareholding in Bryant Ltd on 1 Jan 20X7 for $60 000. This purchase resulted in Odom Ltd having significant influence over Bryant Ltd. Bryant's assets were recorded at fair values and its owners' equity, totalling $180 000, was: Share capital $80 000 Reserves $60 000 Retained profits $40 000 During 20X7 Bryant Ltd reported profit of $100 000, from which a dividend of $60 000 was paid. Also, during the year, Bryant revalued its assets upwards by $50 000, and sold inventories to Willams Ltd which is the subsidiary of Odom. Bryant made a profit of $4,000. Half of the inventories were still held by Willams by the year-end. Odom Ltd has an 80% equity interest in Willams Ltd. Required: Prepare journal entries for Odom Ltd to account for its investment in Bryant Ltd using the Equity Method. Use the Reclassification Method to account for the profit and dividends that Odom shares from Bryant. (Using the provided journal entry template to enter your answer;…

A owns 80% of B & 40% of C, purchased when B's reserve was £6,000, & C's £1,000. B's net assets at acquisition were £25,000. Balance Sheets at 31-Dec-21 Investment in B Investment in C Other Net Assets ₤1NV Shares Reserves Profit/Loss Required: For the ABC group at Ye-Dec-21 prepare a) Group Balance Sheet, A Ltd B Ltd C Ltd 24,000 13,000 34,000 29,000 16,000 71,000 29,000 16,000 40,000 15,000 10,000 25,000 10,000 4,000 6,000 4,000 2,000 71,000 29,000 16,000 b) Group Income Statement, and c) Explain subsidiary and associate accounting treatments in group accounting. For group and parent interests calculate d) Return on Equity, and e) Earnings per Share