Redcliff Ltd acquired the entire share capital
Question 1 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: Investments in ABC at cost 18,000 Other assets 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 Prepare the consolidated balance sheet of Redcliff Ltd and its subsidiary as at 31 December 20X4. Question 2 Based on the information provided below, prepare appropriate consolidation journal entries for possible account adjustment or elimination. Parent paid…
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