1. TNT Ltd. purchased equity shares in KLM Ltd. for Sh.56 million when the latter’s retained profits were Sh.88 million. The retained earnings of KLM Ltd. now are Sh.100 million. TNT Ltd. holds 25% of KLM Ltd.’s equity shares and has amortised Sh.3 million premium on acquisition. KLM Ltd has declared ordinary dividends of Sh.4 million.

Required:Determine the value of TNT Ltd.’s investment in KLM Ltd. using the equity method of accounting for associate companies.                                                        (5 marks)

Download More Questions and Answers from the Links Below

CPA SECTION 3_financial_reporting1_mock1.pdf CPA SECTION 3_financial_reporting1_mock1.pdf

CPA SECTION 3_financial_reporting1_mock2.pdf

CPA SECTION 3_financial_reporting1_mock3.pdf

CPA SECTION 3_financial_reporting1_mock4.pdf

CPA SECTION 3_financial_reporting1_mock5.pdf

CPA SECTION 3_financial_reporting1_mock6.pdf CPA SECTION 3_financial_reporting1_mock6.pdf

CPA SECTION 3_financial_reporting1_paper1.pdf

CPA SECTION 3_financial_reporting1_paper10.pdf

CPA SECTION 3_financial_reporting1_paper11.pdf

CPA SECTION 3_financial_reporting1_paper12.pdf

CPA SECTION 3_financial_reporting1_paper5.pdf CPA SECTION 3_financial_reporting1_paper5.pdf

CPA SECTION 3_financial_reporting1_paper6.pdf

CPA SECTION 3_financial_reporting1_paper7.pdf

CPA SECTION 3_financial_reporting1_paper8.pdf

CPA SECTION 3_financial_reporting1_paper9.pdf

Download Section 3 Questions and Answers

CPA Section 3 Financial Reporting KASNEB Recent Questions and Answers

CPA Section 3 Financial Management KASNEB Recent Questions and Answers

CPA Section 3 Management Information System Recent Questions and Answers

Download Other Education Resources From Our Sites

GRADE 1-8 ALL CBC RESOURCES

HIGH SCHOOL RESOURCES