FAC3761 Assignment 1 of 2021

FAC3704 ASSIGNMENT 1 – SEMESTER 1 OF
2021
1. 1 (3 365 789 + 1 178 250 − 360 000) = 𝑹𝟒 𝟏𝟖𝟒 𝟎𝟑𝟗

100
2. 3 [1 923 000 + 593 950 − (360 000 ∗ ) = 𝑹𝟐 𝟐𝟐𝟖 𝟗𝟓𝟎
125


3. 2 [(343 507 + 387 250 − (77 000 ∗ 75%)] = 𝑹𝟔𝟕𝟑 𝟎𝟎𝟕

4. 1 (49 550 − 25 000) = 𝑹𝟐𝟒 𝟒𝟓𝟎

Total Noah Ltd (75%) NCI (25%)
At Acquisition R R R R
Ordinary share capital 172 500 129 375 43 125
Retained Earnings 368 100 276 075 92 025
Given 382 500
Inventory (20 000 ∗ 0.72) (14 400)

Contingent liability (140 000) (105 000) (35 000)
390 600 300 450 100 150
Equity represented by goodwill 57 050 49 550 -
Purchase Consideration & NCI 447 650 350 000 100 150


5. 2 (4 980 205 + 306 045) = 𝑹𝟓 𝟐𝟖𝟔 𝟐𝟓𝟎

6. 4

R
Deferred tax liability – Noah Ltd (648 735)
Deferred tax liability – Gates Ltd (57 715)
Inventory (20 000 ∗ 28%) 5 600
25 20 160
Unrealised profit on sale of bakkie (360 000 ∗ ∗ 28%)
125
25
(360 000 ∗ ) 6
Realisation of depreciation [ 125
∗ ∗ 28%] (2 520)
4 12

Deferred tax liability 683 210


7. 4 (only the parent)