Order Now
Uncategorized

Accounting For Preprep’s Purchase Of Goods And Forward Contract

14 min read
Posted on 
April 24th, 2025
Home Uncategorized Accounting For Preprep's Purchase Of Goods And Forward Contract
Date Particulars Amount Amount                
                         
15/12/X8 Call Option A/c.   720000                  
    Cash A/c.   720000                
                         
30/4/X9 Cash A/c.   740000                  
    Call Option A/c.   720000                
    Profit on Hedge Activity A/c.   20000                
                         
30/4/X9 Inventory A/c.   740000                  
    Cash A/c.   740000                
                         
  Profit on Hedge Activity A/c.   20000                  
    Other Comprehensive Income A/c.   20000                
                         
                         
      Dr. Cr.                
Date Particulars Amount Amount                
                         
15/12/X8 Call Option A/c.   720000                  
    Cash A/c.   720000                
                         
28/2/X8 Loss on Hedge Activity A/c.   10000                  
    Call Option A/c.   10000                
                         
  Other Comprehensive Income A/c.   10000                  
    Loss on Hedge Activity A/c.   10000                
                         
30/4/X9 Cash A/c.   740000                  
    Call Option A/c.   710000                
    Profit on Hedge Activity A/c.   30000                
                         
30/4/X9 Inventory A/c.   740000                  
    Cash A/c.   740000                
                         
  Profit on Hedge Activity A/c.   30000                  
    Other Comprehensive Income A/c.   30000                
                         
              Consolidation Entries:      
                         
Carrying Amount Fair Value Net Fair Value         Date Particulars Amount Amount  
                         
400000   400000           Equipment A/c.   80000    
146000   146000             BCVR A/c.   80000  
800000 880000 80000                    
                Depreciation Expense A/c.   8000    
    626000             Equipment A/c.   8000  
                         
    623200           Share Capital A/c.   360000    
    62600           Retained Earnings A/c.   131400    
    685800           Goodwill A/c.   59800    
                BCVR A/c.   72000    
    59800             Investment in Marcus Co. A/c.   623200  
                         
                Share Capital A/c.   40000    
Liv Ltd.           Retained Earnings A/c.   14600    
in $CDN Exchnage Rate in FC Marcus LTd. Adjustments Group     BCVR A/c.   8000    
                  NCI A/c.   62600  
16472000 2.32 7100000 8400000   15500000              
180080 2.44 73803   -147600 -73797     Dividend Revenue A/c.   147600    
16652080   7173803 8400000   15573803     NCI A/c.   16400    
-8256000 2.32 -3558621 -5304000   -8862621       Dividend Paid A/c.   164000  
-7124000 2.32 -3070690 -2688000 -8000 -5766690              
        -4000 -4000     Impairment Loss A/c.   4000    
1272080   544493 408000   940493       Goodwill A/c.   4000  
1329440 2.2 604291 146000 -146000 604291              
      164000 -164000 0              
2601520   1148784 390000   1544784              
                         
                         
                         
Liv Ltd.                    
in $CDN Exchnage Rate in FC Marcus LTd. Adjustments Group              
                         
                         
                         
2752000 2.32 1186207 800000 72000 2058207              
1371040 2.2 623200   -623200 0              
        55800 55800              
4123040   1809407 800000   2114007              
                         
1376000 2.38 578151 364000   942151              
700000 2.32 301724 280000   581724              
562080 2.44 230361 164000   394361              
2638080   1110236 808000   1918236              
6761120   2919643 1608000   4032243              
                         
                         
1376000 2.2 625455 400000 -400000 625455              
2601520 2.44 1066197 146000   1544784              
    28164     -446023              
        46200 46200              
3977520   1719815 546000   1770415              
                         
                         
1860000 2.32 801724 640000   1441724              
                         
923600 2.32 398103 422000   820103              
2783600   1199828 1062000   2261828              
6761120   2919643 1608000   4032243              
                         
Acquisition Analysis:           Consolidation Entries:    
                         
Particulars Carrying Amount Fair Value Net Fair Value Exchage Rate Net Fair Value     Date Particulars Amount Amount
      In FC   In CDN           in CDN in CDN
Share Capital 400000   400000 2.2 880000       Equipment A/c.   176000  
Retained Earnings 146000   146000 2.2 321200         BCVR A/c.   176000
Equipment 800000 880000 80000 2.2 176000              
                  Depreciation Expense A/c.   17600  
Net Fair Value of Identifiable Assets & Liabilities     626000   1377200         Equipment A/c.   17600
                         
Purchase Consideration     623200 2.2 1371040       Share Capital A/c.   792000  
Add: Non-Controlling Interest     62600   137720       Retained Earnings A/c.   289080  
Total Value of MC     685800   1508760       Goodwill A/c.   131560  
                  BCVR A/c.   158400  
Goodwill     59800   131560         Investment in Marcus Co. A/c.   1371040
                         
Income Statement:               Share Capital A/c.   88000  
  Marcus Ltd.           Retained Earnings A/c.   32120  
Particulars In FC Exchnage Rate In CDN Liv Ltd. Adjustments Group     BCVR A/c.   17600  
                    NCI A/c.   137720
Sales 8400000 2.32 19488000 16472000   35960000            
Dividend Income       180080 -360144 -180064     Dividend Revenue A/c.   360144  
Total Income 8400000   19488000 16652080   36140080     NCI A/c.   40016  
Cost of Sales -5304000 2.32 -1.2E+07 -8256000   ########       Dividend Paid A/c.   400160
Other Expenses -2688000 2.32 -6236160 -7124000 -17600 ########            
Impairment Loss         -9280 -9280     Impairment Loss A/c.   9280  
Net Income 408000   946560 1272080   2191760       Goodwill A/c.   9280
Add: Retained Earnings (1/1/X8) 146000 2.2 321200 1329440 -321200 1329440            
Less: Dividend Paid 164000 2.44 400160   -400160 0            
Retained Earnings (31/12/x8) 390000   867600 2601520   3521200            
                         
                         
Balance Sheet:                      
  Marcus Ltd.                  
Particulars In FC Exchnage Rate In CDN Liv Ltd. Adjustments Group            
                         
Assets:                        
Non-Current Assets:                        
Plant & Equipment,net 800000 2.32 1856000 2752000 158400 4766400            
Investment in Marcus Co.       1371040 -1371040 0            
Goodwill, net         122280 122280            
  800000   1856000 4123040   4888680            
Current Assets:                        
Inventory 364000 2.38 866320 1376000   2242320            
Accounts Receivable 280000 2.32 649600 700000   1349600            
Cash & Cash Equivalents 164000 2.44 400160 562080   962240            
  808000   1916080 2638080   4554160            
Total Assets 1608000   3772080 6761120   9442840            
                         
Shareholder’s Equity:                        
Share Capital 400000 2.2 880000 1376000 -880000 1376000            
Retained Earnings 390000 2.44 951600 2601520   3521200            
Foreign Curreny Translation Reserve     -523360     -799504            
Non-Controlling Interest         97704 97704            
  790000   1308240 3977520   4195400            
Liabilities:                        
Non-Current Liabilities:                        
Notes Payable 640000 2.32 1484800 1860000   3344800            
Current Liabilities:                        
Accounts Payable & Accrued liabilities 422000 2.32 979040 923600   1902640            
Total Liabilities 1062000   2463840 2783600   5247440            
Total Shareholder’s Equity & Liabilities 1852000   3772080 6761120   9442840            
                         
                         
Particulars Amount Exchange Rate Amount                  
  (in FC)   (in CDN)                  
Initial Investment in Marcus Co. 623200 2.2 1371040                  
Add: Dividend Revenue 147600 2.44 360144                  
                         
Investment Value in Marcus Co.     1731184                  
                         
    Dr. Cr.         Dr. Cr.      
Particulars Amount Amount   Date Particulars Amount Amount      
                         
Cash A/c.   5000       Cash A/c.   5000        
  Deferred Contribution- Urgent Fund A/c.   5000       Contribution – Unrestricted Fund A/c.   5000      
                         
Cash A/c.   10000       Cash A/c.   10000        
  Deferred Contribution- Homework Assistance Project A/c.   10000       Contribution – Restricted for Homework Assitance Project A/c.   10000      
                         
Cash A/c.   25000       Cash A/c.   25000        
  Deferred Contribution- Scholarship Fund A/c.   25000       Contribution – Restricted for Scholarship Fund A/c.   25000      
                         
Cash A/c.   10000       Cash A/c.   10000        
  Deferred Capital Contribution- Homework Assistance Project A/c.   10000       Contribution – Restricted for Homework Assitance Project A/c.   10000      
                         
Land A/c.   30000       Land A/c.   30000        
  Deferred Capital Contribution- New Centre A/c.   30000       Contribution – Restricted for Homework Assitance Project A/c.   30000      
                         
Furniture-Desks A/c.   10000       Furniture-Desks A/c.   10000        
  Cash A/c.   10000       Cash A/c.   10000      
                         
Deferred Capital Contribution- Homework Assistance Project A/c.   10000       Contribution – Restricted for Homework Assitance Project A/c.   10000        
  Contribution Revenue A/c.   10000       Contribution – Unrestricted Fund A/c.   10000      
                         
Cash A/c.   500       Cash A/c.   500        
  Deferred Contribution- Scholarship Fund A/c.   500       Contribution – Restricted for Scholarship Fund A/c.   500      
                         
Depreciation Expenses A/c.   1000       Depreciation Expenses A/c.   1000        
  Accum Depreciation – Furniture A/c.   1000       Accum Depreciation – Furniture A/c.   1000      

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order
Calculate the price
Pages (275 words)
$0.00
Course Scholars
Company
Legal
How Our Service is Used:
Course Scholars essays are NOT intended to be forwarded as finalized work as it is only strictly meant to be used for research and study purposes. Course Scholars does not endorse or condone any type of plagiarism.
Subscribe
No Spam
© 2025 Course Scholars. All rights reserved.
Course Scholars will be listed as ‘Course Scholars’ on your bank statement.

Order your essay today and save 15% with the discount code GINGER

Order Now