On 1 July 20X6, P Limited Acquired All the Issued $\bullet$

On 1 July 20X6, P Limited acquired all the issued shares of S Limited for $50 000 when the equity of S Limited consisted of:
$\bullet$ Share Capital $35 000
$\bullet$ Retained Earnings $15 000
The pre-acquisition entry at 1 July 20X6 is:

A) $\begin{array}{lll}\text { Shares in S Limited } & \mathrm{Dr} & 50,000 \\\text { Opening Retained earnings } & \mathrm{Cr} &15,000 \\\text { Share capital } & \mathrm{Cr} &35,000\end{array}$

B) $\begin{array}{lll}\text { Opening Retained earnings } & \mathrm{Dr} & 15,000 \\\text { Share capital } & \mathrm{Dr} & 35,000 \\\text { Shares in S Limited } & \mathrm{Cr} &50,000\end{array}$

C) $\begin{array}{lll}\text { Opening Retained earnings } & \mathrm{Dr} & 35,000 \\\text { Share capital } & \mathrm{Dr} & 15,000 \\\text { Shares in S Limited } & \mathrm{Cr} &50,000\end{array}$

D) $\begin{array}{lll}\text { Goodwill } & \mathrm{Dr} & 15,000 \\\text { Share capital } & \mathrm{Dr} & 35,000 \\\text { Shares in S Limited } & \mathrm{Cr} &50,000\end{array}$