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Suggest one reason why QW plc might want to purchase the partnership.
See it on the paper →Advise whether or not CF Limited has made a good decision to take over the delivery services. Justify your answer.
See it on the paper →Prepare the journal entry in the books of AD plc to record the acquisition of the partnership. A narrative is required.
See it on the paper →Explain three benefits of a merger.
See it on the paper →Discuss whether or not Tina has made the right decision to merge her business with Ray and Steve’s business. Justify your answer.
See it on the paper →Prepare the journal entry in HJ Limited’s books to record the purchase of Suhail’s business. A narrative is not required.
See it on the paper →State two reasons why a business may acquire another business.
See it on the paper →Suggest two reasons why the merger made possible the savings in administrative expenses.
See it on the paper →Advise Doreen whether or not merging her business with Alan’s business is a good strategy. Justify your answer. PLEASE TURN OVER
See it on the paper →Prepare the journal entries in MM Limited’s books to record the acquisition of the partnership business.
See it on the paper →Discuss the reasons why the purchase consideration was more than $730 000.
See it on the paper →Advise the directors whether or not they should have paid more than $730 000 for the partnership. Justify your answer. Section B: Cost and Management Accounting Answer all questions.
See it on the paper →Calculate the amount of consideration payable by P Limited to Euan.
See it on the paper →Prepare the statement of financial position of P Limited immediately after acquiring Euan’s business. Use the space provided on the next page to show your workings. Workings: Additional information The directors consider that acquiring Euan’s business can bring future economic benefits to P Limited.
See it on the paper →Explain how acquiring Euan’s business can bring the benefits to P Limited.
See it on the paper →Explain the event which has taken place and caused the company to record the value for goodwill.
See it on the paper →State two other reasons why goodwill might arise.
See it on the paper →Calculate the purchase consideration payable by X Limited.
See it on the paper →Prepare the realisation account. Additional information It was agreed that the allocation of X Limited’s shares to the partners and the final settlement by the partners to or from the partnership bank account will go through the partners’ capital accounts.
See it on the paper →Prepare partners’ capital accounts in a columnar form. Additional information After issuing 50 000 ordinary shares to Ang and Kim, X Limited had an issued ordinary share capital of $300 000. Ang and Kim were appointed as directors of X Limited and each received $25 000 per annum as director fees. X Limited forecasted t...
See it on the paper →This was reasonably well answered with most candidates providing the required advice along with comments to justify their decision.
— Examiner report, February/March 2025, 9706/32 Q1(c) (Cambridge)
Some candidates prepared a correct journal entry with the most common error being the incorrect calculation or omission of goodwill. A limited number of candidates did not use the correct format with some submitting their answer as a ledger account.
— Examiner report, October/November 2023, 9706/31 Q2(c) (Cambridge)
Many candidates stated two valid reasons for a business acquisition.
— Examiner report, May/June 2023, 9706/32 Q3(a) (Cambridge)
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