Account

Question 1

The financial statements of A Co are shown below. P Co acquired a 30% interest in A Co on 1 January 20X3.

Income statements for the year ended 31 December 20X5

| |$ | |

|Profit before tax |200,000 | |

|Tax |40,000 | |

|Profit after tax |160,000 | |

|Dividends declared |20,000 | |

|Profit retained |140,000 | |

|Retained earnings, 1 January 20X5 |100,000 | |

|Retained earnings, 31 December 20X5 |240,000 | |

Statements of financial position as at 31 December 20X5

| |$ | |

|Non-current assets, net book value |450,000 | |

|Inventory |120,000 | |

|Accounts receivable |60,000 | |

|Cash |25,000 | |

| |655,000 | |

| | | |

|Accounts payable...