CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 50 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 50
Topic #: 1

XY puchased 2% of the equity shares of FG on 1 October 20X3.

XY paid $25,000 for the shares as well as a transaction cost of 2.5% of the purchase price.

The shares are being held for short term trading and XY intend to sell them in December 20X3.

At the year end of 31 October 20X3, the shares in FG could be sold for $28,000.

What is the journal entry to record the subsequent measurement for this investment at 31 October 20X3?

ADebit investment in equity shares $3,000 and credit profit or loss $3,000.

BDebit investment in equity shares $3,000 and credit other reserves $3,000.

CDebit investment in equity shares $2,375 and credit profit or loss $2,375.

DDebit investment in equity shares $2,375 and credit other reserves $2,375.

Show Suggested Answer

Suggested Answer: A

by Helaine at May 03, 2022, 09:00 AM

Limited Time Offer

25%

Off

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!