logo

Consolidation Work Sheet of Parent Ltd

   

Added on  2020-05-03

6 Pages846 Words212 Views
 | 
 | 
 | 
Question 1Consolidation work sheetParent LtdSubsidiaryLtdDRCRConsolidatedSales7000005000001200000Dividend income2000020000Expenses290000260000550000Profit412000240000650000Retained earnings 1 July 2015300000250000250000300000Less Dividend declared-1000-20002000-1000Retained earnings 30 June 2016711000488000949000Share capital10000006000006000001000000General reserve2000000200000Business combination valuation reserve50000500000Trade and other creditors530000208000738000Dividend payable1000200020001000Income tax payable 14000042000182000258200013400003070000Trade and other receivables6430005080001151000Dividend receivable2000020000Shares in Subsidiary Ltd900000 - 9000000Property plant and equipment (net)7300007100001440000Inventories20000020000220000Other assets107000102000209000Goodwill on consolidation5000050000258200013400003070000Working notesAcquisition analysis Share capital 600000Retained earnings 250000Net fair value of identifiable assets850000Consideration transferred900000goodwill50000
Consolidation Work Sheet of Parent Ltd_1

Consolidation journal entriesBusiness combination valuation entryGoodwillDr 50000Business combination valuation reserveCr50000( to recognize goodwill)Pre-acquisition entriesAt 1/7/15: (not required – not posted)Retained earnings (1/7/15)Dr250000Share capitalDr600000Business combination valuation reserveDr 50000Shares in Subsidiary LtdCr900000(to eliminate investment in subsidiary)At 30/6/16 (Posted to the consolidation worksheet):Retained earnings (30/6/16)Dr250000Share capitalDr600000Business combination valuation reserveDr50000Shares in Subsidiary LtdCr900000(to eliminate investment in subsidiary)Intra-group adjustment entriesDividend payableDr2000Dividend receivable Cr2000( to eliminate intra-group dividend)Dividend incomeDr2000Dividend declaredCr2000( to eliminate intra-group dividend)
Consolidation Work Sheet of Parent Ltd_2

Question 2Consolidation work sheetConsolidationParent LtdSubsidiary LtdDRCRConsolidatedSales150001650031500Dividend income600600Expenses-5140-5685-10825Profit99201081520675Retained earnings 1 July 20156000500050006000Less Dividend declared-120-6060-120Retained earnings 30 June 2016158001575526555Share capital40000100001000040000General reserve600003000300060000Business combination valuation reserve200020000Loan payable500035008500Dividend payable120606012012092032315135175Trade and other receivables400037007700Dividend receivable600600Shares in Subsidiary Ltd20000 - 200000Property plant and equipment (net)700002100091000Inventories18750711525865Other assets81105008610Goodwill on consolidation2000200012092032315135175Working notesAcquisition analysis Share capital 10000General reserve3000Retained earnings 5000Net fair value of identifiable assets18000Consideration transferred20000Goodwill2000
Consolidation Work Sheet of Parent Ltd_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents