Corporate Accounting: Consolidation Journal Entries and Worksheet

RUNNING HEAD: CORPORATE ACCOUNTING
CORPORATE ACCOUNTING

CORPORATE ACCOUNTING 1
Contents
Q1. Consolidation journal entries..........................................................................................................2
Q2. Consolidation Worksheet................................................................................................................4

CORPORATE ACCOUNTING 2
Q1. Consolidation journal entries
Particulars
Debit
($)
Credit
$)
Dividend Revenue A/c Dr 5000
To Interim Dividend paid A/c 5000
(Being interim dividend received to Ghostbusters Ltd)
Dividend payable A/c Dr 4000
To Final Dividend Declared A/c 4000
(Being final declared by Bat Ltd)
Dividend Revenue A/c Dr 4000
To Dividend receivable A/c 4000
(Being final receivable by Ghostbusters Ltd)
Retained Earnings A/c Dr 2800
Income tax expense A/c Dr 1200
To Cost of sales A/c 4000
(Being inventories transfer to Bat Ltd)
Gain on sale of inventory A/c Dr 5000
To Inventory A/c 5000
(Being inventory sold to Ghostbusters ltd on profit )
Deferred tax asset A/c Dr 1500
To income tax expense A/c 1500
(Being income tax charged to Bat Ltd)
Sales A/c Dr 8000
To Cost of sales A/c 7000
To Inventory A/c 1000
(Being inventory sold)
Deferred tax asset A/c Dr 300
To income tax expense A/c 300
(Being income tax charged to Ghostbusters Ltd)
Sales A/c Dr 18000
To Cost of sales A/c 16000
To Inventory A/c 2000
(Being inventory sold)
Deferred tax asset A/c Dr 600
To income tax expense A/c 600
(Being income tax charged to Ghostbusters Ltd)
Retained Earnings A/c Dr 700
Deferred tax asset A/c Dr 300
To Furniture A/c 1000
(Being furniture transfer to Bat Ltd)
Accumulated Depreciation - Furniture A/c Dr 150
To Depreciation A/c 100
To Retained Earnings A/c 50