Homework Answers
Journal entries in the books of fosters Inc. for the year 2020
|
Particulars |
Debit (in $) |
Credit (in $) |
|
Investment in Brandy A/c Dr |
250,000 |
|
|
To Bank A/c |
250,000 |
|
|
Being investment in Brandy Inc. accounted for |
||
|
Investment in Brandy A/c Dr |
40,000 |
|
|
To investment income A/c |
40,000 |
|
|
Being proportionate share of profits in the Brandy Inc. has been accounted for (100,000*40%) |
||
|
Bank A/c Dr |
8,000 |
|
|
To investment in Brandy A/c |
8,000 |
|
|
Being dividend received from the Brandy Inc. has been accounted for (20,000*40%) |
Since the Book value of the Brandy Inc. has not been given the goodwill was not calculated.
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