Corporate Accounting Question and Answer 2022

CORPORATE ACCOUNTING 1
CORPORATE ACCOUNTING

CORPORATE ACCOUNTING 2
Question 1:
A
)
If Bolan dos not prepare Consolidated financial
statements, investment in Rex Ltd is to be recognised at
Cost or in accordance with AASB9
NCI calculation
Share Capital
3,
00,0
00
Retained Earnings (30/06/20)
60,2
40
3,
60,2
40
NCI - 60%
2,
16,1
44
B
)
If Bolan prepares Consolidated financial statements,
investment in Rex Ltd is to be recognised under Equity
method
Journal Entries
Dr. Cr.

CORPORATE ACCOUNTING 3
Dividend A/c
8,64
0
Investment in Rex Ltd.
8,6
40
(Elimination of Dividend = 40% of (9600+12000)
Gain on Sale of Motor Vehicle A/c
2,
880.
00
Investment in Rex Ltd
2,
880
.00
(Elimination of Gain on Sale of Motor Vehicle = 40% of
(28800-21600)
Retained Earnings
576.
00
Investment in Rex Ltd
576
.00
(Adjustment of Depreciation on Motor Vehicle =40% of
(43200*.2-4320-2880)

CORPORATE ACCOUNTING 4
Tax Expense
1,
036.
80
Deferred Tax
1,
036
.80
(Tax Impact on Difference in Carrying Value of Motor
Vehicle)
Investment in Rex Ltd.
768.
00
Retained Earnings
768
.00
(Elimination of Unrealised Profit in Opening Inventor of
Rex Ltd)
Tax Expense
230.
40
Deferred Tax
230
.40
(Tax impact on Unrealised Profit in Opening Inventory)