Corporate Accounting

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student:
Name of the University:
Authors Note:

CORPORATE ACCOUNTING
1
Table of Contents
Part A:........................................................................................................................................2
a) Recording journal entries:......................................................................................................2
b) Consolidated work sheet:.......................................................................................................3
Part B: Advising Flora Ltd as to whether, under AASB 10, it controls Testa Ltd and/or Ziggy
Ltd..............................................................................................................................................5
References:.................................................................................................................................8

CORPORATE ACCOUNTING
2
Part A:
a) Recording journal entries:
1. Consolidation Adjustments
at 30/6/2019
Accounts
R
ef Dr ($) Cr ($)
Land 1
$4,930,0
00
Carrying value
$3,524,8
00
Fair value of land
$1,405,2
00
Share capital 2
$3,965,4
00
Plant replacement reserve
$991,40
0
Retained earnings
$743,46
0
Goodwill
$1,706,5
40
Revaluation of land
$1,405,2
00
Consideration transferred
$8,812,0
00
Retained profits (01/07/2018) 3
$925,00
0
Opening inventory (Income
statement)
$925,00
0
Income tax expense 4
$277,50
0
Retained profits (01/07/2018)
$277,50
0
Sales 5
$4,009,0
00
Purchases
$4,009,0
00
Closing inventory (Income
statement) 6
$1,443,6
00
Inventory (balance sheet)
$1,443,6
00
Deferred tax asset 7
$433,08
0