(a)[9]
In the books of D Limited, prepare the journal entry required to record the takeover of the partnership on 31 December 2018. No narrative is needed.
(b(i))[2]
Calculate the gearing ratio for D Limited before the acquisition.
(b(ii))[2]
Calculate the gearing ratio for D Limited after the acquisition.
(c)[5]
Calculate, to two decimal places, the ROCE of D Limited after the partnership is acquired.
(d)[5]
Advise the directors of D Limited whether acquiring the partnership was a good decision or not. Support your view by referring to your answers to parts (b) and (c).
(e)[2]
State two advantages of being a shareholder in a limited company rather than a partner in a partnership.