Financial Statements for Top Springs Ltd in Australian Dollars

This document provides the financial statements for Top Springs Ltd in Australian Dollars for the financial year ended 30 June 2029, including the statement of profit or loss, statement of changes in equity, and statement of financial position. It also includes the translation of the financial data to the functional currency.

Corporate
Accounting

Contents
TASK 1............................................................................................................................................3
Financial statements for Top Springs Ltd in Australian Dollars for the financial year ended 30
June 2029:...............................................................................................................................3
Translate the financial data for Top Springs Ltd to the functional currency:........................5
Financial statements (as above) for Top Springs Ltd using the functional currency of US
dollars:....................................................................................................................................7
Foreign currency translation adjustment:...............................................................................9
TASK 2..........................................................................................................................................10
Journal entries recorded by Wooragee Wines Ltd in relation to the business acquisition during
the year ended 30 June 2025:...............................................................................................10
Acquisition analysis at 1 July 2024:.....................................................................................10
The consolidation worksheet entries at 1 July 2024.............................................................11
The consolidation worksheet entries at 30 June 2025:.........................................................11
The consolidation worksheet entries at 30 June 2026:.........................................................11
The consolidation worksheet entries at 30 June 2027:.........................................................11
The consolidation worksheet at 30 June 2027:.....................................................................12
The consolidated financial statements for the period ended 30 June 2027:.........................13

TASK 1
Financial statements for Top Springs Ltd in Australian Dollars for the financial year ended 30
June 2029:
Statement of Profit or Loss:
Statement of Profit or Loss for Top Springs Ltd in Australian Dollars for the
financial year ended 30 June 2029
Total Revenue 1,20,00,000
Cost of Goods Sold 52,50,000
Gross Profit 67,50,000
Operating Expenses
Depreciation - Buildings 3,00,000
Depreciation - Plant 3,75,000
Total Operating Expenses 6,75,000
Operating Profit 60,75,000
Interest Expenses 3,00,000
Other expenses 21,37,500
Income Before Tax 36,37,500
Income tax expense 10,87,500
Net loss 25,50,000
A Statement of Changes in Equity for Top Springs Ltd in Australian Dollars for the
financial year ended 30 June 2029
Share Capital 5400000
Retained Earning 1500000
Balance at Beginning of the year 6900000
Capital Addition -
Profit for the year 25,50,000
Drawings -
Dividend Paid 9,00,000
Dividend Declared 15,00,000

Retained Earning 16,50,000
Share Capital 5400000
Balance at the end of the year 70,50,000
Statement of Financial Position for Top Springs Ltd in Australian Dollars as on 30 June
2029
Assets
Non-Current Assets
Tangible Assets
Land 37,50,000
Buildings 69,00,000
Less: Acc. Dep.- Building 9,00,000
Less: Depreciation- Building 3,00,000 57,00,000
Plant 54,00,000
Less: Acc. Dep. - Plant 9,75,000
Less: Depreciation Plant 3,75,000 40,50,000
Total Tangible Assets 1,35,00,000
Intangible Assets
Patents 6,00,000
Total Intangible Assets 6,00,000
Current Assets
Accounts receivable 1,50,000
Inventories 2100000
Cash 1,50,000
Other current assets 675000
Total Current Assets 30,75,000
Total Assets 1,71,75,000
Non-Current Liabilities

Loan – Bank of New York 37,50,000
Current Liabilities
Accounts payable 24,00,000
Dividends Payable 15,00,000
Provisions 24,75,000
Other Current Liabilities
Total Current Liabilities 63,75,000
Total Liabilities 1,01,25,000
Equity 70,50,000
Total Equity and Liabilities 1,71,75,000
Translate the financial data for Top Springs Ltd to the functional currency:
Y/E 30/06/29 Exchange Rate
Debit Credit Rate Debit Credit
Cash 1,50,000 30-Jun-29 0.7 105000
Accounts
receivable
1,50,000 Average for 2028-
29
0.65 97500
Inventory
(Opening
balance)
10,50,000 Average for 2028-
29
0.65 682500
Land 37,50,000 01-Apr-29 0.67 2512500
Buildings 69,00,000 01-Oct-28 0.62 4278000
Accum.
Depn. -
Buildings
9,00,000 Average for 2028-
29
0.65 585000
Plant 54,00,000 31-Dec-28 0.64 3456000
Accum.
Depn. -
9,75,000 Average for 2028-
29
0.65 633750

Plant
Patents 6,00,000 Average for 2028-
29
0.65 390000
Accounts
payable
24,00,000 Average for 2028-
29
0.65 1560000
Dividends
Payable
15,00,000 Average for 2028-
29
0.65 975000
Provisions 24,75,000 Average for 2028-
29
0.65 1608750
Loan –
Bank of
New York
37,50,000 01-Jul-28 0.6 2250000
Share
capital
54,00,000 30-Jun-29 0.7 3780000
Retained
earnings
(Opening
balance)
15,00,000 01-Jul-28 0.6 900000
Dividend
paid
9,00,000 31-Dec-28 0.64 576000
Dividend
declared
15,00,000 30-Jun-29 0.7 1050000
Sales 1,20,00,00
0
Average for 2028-
29
0.65 7800000
Purchases 63,00,000 Average for 2028-
29
0.65 4095000
Depreciatio
n -
Buildings
3,00,000 Average for 2028-
29
0.65 195000

Depreciatio
n - Plant
3,75,000 Average for 2028-
29
0.65 243750
Interest 3,00,000 30-Jun-29 0.7 210000
Other
expenses
21,37,500 Average for 2028-
29
0.65 1389375
Income tax
expense
10,87,500 Average for 2028-
29
0.65 706875
3,09,00,00
0
3,09,00,00
0
1998750
0
2009250
0
Financial statements (as above) for Top Springs Ltd using the functional currency of US dollars:
Statement of Profit or Loss for Top Springs Ltd in US dollars for the financial year
ended 30 June 2029
Total Revenue 78,00,000
Cost of Goods Sold 55,12,500
Gross Profit 22,87,500
Operating Expenses
Depreciation - Buildings 1,95,000
Depreciation - Plant 2,43,750
Total Operating Expenses 4,38,750
Operating Profit 18,48,750
Interest Expenses 2,10,000
Other expenses 13,89,375
Income Before Tax 2,49,375
Income tax expense 7,06,875
Net loss -4,57,500
A Statement of Changes in Equity for Top Springs Ltd in US dollars for the financial
year ended 30 June 2029

Share Capital 3240000
Retained Earning 900000
Balance at Beginning of the year 4140000
Capital Addition -
Profit for the year -4,57,500
Drawings -
Dividend Paid 5,76,000
Dividend Declared 10,50,000
Closing Balance:
Share Capital 3780000
Retained Earning -1,33,500
Balance at the end of the year 36,46,500
Statement of Financial Position for Top Springs Ltd in Australian Dollars as on 30 June
2029
Assets
Non-Current Assets
Tangible Assets
Land 2512500
Buildings 42,78,000
Less: Acc. Dep.- Building 5,85,000
Less: Depreciation- Building 1,95,000 34,98,000
Plant 34,56,000
Less: Acc. Dep. - Plant 6,33,750
Less: Depreciation Plant 2,43,750 25,78,500
Total Tangible Assets 85,89,000
Intangible Assets
Patents 34,56,000
Total Intangible Assets 34,56,000
Current Assets

Accounts receivable 97,500
Inventories 1470000
Cash 1,05,000
Total Current Assets 16,72,500
Total Assets 1,37,17,500
Non Current Liabilities
Loan – Bank of New York 22,50,000
Current Liabilities
Accounts payable 15,60,000
Dividends Payable 9,75,000
Provisions 16,08,750
Other Current Liabilities 3677250
Total Current Liabilities 78,21,000
Total Liabilities 1,00,71,000
Equity 36,46,500
Total Equity and Liabilities 1,37,17,500
Foreign currency translation adjustment:
Table Showing Foreign currency adjustment
Total Debit Balance Closing (In US$) 19987500
Total Credit Balance Closing (In US$) 20092500
Foreign currency adjustment -105000 (Credit)

TASK 2
Journal entries recorded by Wooragee Wines Ltd in relation to the business acquisition during
the year ended 30 June 2025:
Inventory Dr 20000
Deferred tax liability Cr 6000
Business combination valuation reserve Cr 14000
Land Dr 20000
Deferred tax liability Cr 6000
Business combination valuation reserve Cr 14000
Farm Machinery Dr 40000
Deferred tax liability Cr 12000
Business combination valuation reserve Cr 28000
Deferred tax liability Dr 5400
Business combination valuation reserve Dr 12600
Guarantee Payable Cr 18000
Acquisition analysis at 1 July 2024:
Fair value of identifiable assets and liabilities of Colin Ltd
= (1200000 + 100000 + 420000) (Equity)
+ 20000 (1 - 30%) (Inventory)
+ 20000 (1 - 30%) (Land)
+ 40000 (1 -30%) (Farm Machinery)
- 18000 (1 -30%) (Guarantee Payable)
- 60000 (Goodwill)
+ 130000 (1 - 30%) (Research Project)
= 1939600

Consideration transferred = 250000 + 1000000 + 560000 + 2500 +23000 - 100000
(Dividend Payable)
= 1735500
The consolidation worksheet entries at 1 July 2024
Research Project Dr 130000
Deferred tax liability Cr 39000
Business combination valuation reserve Cr 91000
The consolidation worksheet entries at 30 June 2025:
Transfer from business combination
valuation reserve Dr 12600
Business combination valuation reserve Cr 12600
Retained earnings Dr 420000
General reserve Dr 100000
Share capital Dr 1200000
Business combination valuation reserve Dr 15500
Shares in Yackandandah Ltd Cr 1735500
The consolidation worksheet entries at 30 June 2026:
Dividend payable Dr 100000
Dividend receivable Cr 100000
The consolidation worksheet entries at 30 June 2027:
Transfer from general reserve Dr 420000
General reserve Cr 420000

Share capital Dr 1000000
Shares in Yackandandah Ltd Cr 1000000
The consolidation worksheet at 30 June 2027:
Consolidation Worksheet
Adjustments
Financial
Statements
Wooragee Wines
Ltd
Yackandandah
Ltd
Dr Cr Group
Revenues 34,20,000 6,60,000 40,80,000
Expenses -14,40,000 -4,56,000 -
18,96,000
19,80,000 2,04,000 21,84,000
Gains (Losses) on
sale of non-current
assets
3,06,000 24,000 3,30,000
Profit before tax 22,86,000 2,28,000 25,14,000
Tax expense -7,20,000 -36,000 -7,56,000
Profit for the year 15,66,000 1,92,000 17,58,000
Retained earnings
(1/7/26)
8,40,000 5,28,000 1,08,000 12,60,000
Profit for the year 15,66,000 1,92,000 17,58,000
Dividend paid -12,00,000 0 -
12,00,000
Transfer to general
reserve
0 -90,000 5,20,000 4,30,000
Retained earnings
(30/6/27)
12,06,000 6,30,000 4,12,000 22,48,000

Share capital 30,00,000 12,00,000 30,00,000
General reserve 1,76,000 2,88,000 17,84,00
0
22,48,000
Total equity 43,82,000 21,18,000 52,48,000
Cash 2,16,000 1,80,000 14,32,60
0
18,28,600
Accounts receivable 5,04,000 72,000 5,76,000
Inventory 5,40,000 3,06,000 3,04,600 5,41,400
Farm machinery 43,22,000 19,20,000 19,20,00
0
43,22,000
Accumulated
depreciation –
machinery
-20,40,000 -2,40,000 2,40,000 -
20,40,000
Goodwill 60,000 60,000
Shares in
Yackandandah Ltd
19,50,000 0 1250000
Total assets 54,92,000 22,98,000 65,38,000
Payables 7,20,000 30,000 7,50,000
Loans 1,20,000 66,000 1,86,000
Provisions 2,70,000 84,000 3,54,000
Total liabilities 11,10,000 1,80,000 12,90,000
Net assets 43,82,000 21,18,000 52,48,000
The consolidated financial statements for the period ended 30 June 2027:
Consolidated Statement of Profit or Loss
Revenues 40,80,000
Expenses -18,96,000
21,84,000
Gains (Losses) on sale of non-current assets 3,30,000
Profit before tax 25,14,000

Tax expense -7,56,000
Profit for the year 17,58,000
Consolidated Statement of Changes in Equity
Retained earnings (1/7/26) 12,60,000
Profit for the year 17,58,000
Dividend paid -12,00,000
Transfer to general reserve 4,30,000
Retained earnings (30/6/27) 22,48,000
Consolidated Statement of Financial Position
Share capital 30,00,000
General reserve 22,48,000
Total equity 52,48,000
Cash 18,28,600
Accounts receivable 5,76,000
Inventory 5,41,400
Farm machinery 43,22,000
Accumulated depreciation – machinery -20,40,000
Goodwill 60,000
Shares in Yackandandah Ltd 1250000
Total assets 65,38,000
Payables 7,50,000
Loans 1,86,000
Provisions 3,54,000
Total liabilities 12,90,000
Net assets 52,48,000