FAC2601 EXAM PACK

QUESTION 1 Gold Limited acquired 60 000 of the ordinary shares in Silver Limited on 1 March 2013. On this date Silver Limited had retained earnings of R15 000 and the carrying amounts of the assets and liabilities were equal to the fair values. The following represent the abridged trial balances of Gold Limited and Silver Limited at 28 February 2015: Debits Land and buildings Machinery and equipment Investment in Silver Limited at fair value (cost price: R160 000) Bank Trade and other receivables Inventories Taxation Dividends paid Credits Ordinary share capital (R2 shares) Retained earnings Revaluation surplus Trade and other payables Bank Profit before tax Dividends received Gold Silver Ltd Ltd R R - 10 000 160 000 - 21 200 - - 48 250 6 000 - REQUIRED: Draft the consolidated financial statements of Gold Limited and its subsidiary Silver Limited at 28 February 2015. Notes to the financial