1 On 1st July 20X1 Baker Ltd acquired all the share capital of Portland Ltd for
ID: 2511182 • Letter: 1
Question
1
On 1st July 20X1 Baker Ltd acquired all the share capital of Portland Ltd for $100,000.
At that date equity of Portland Ltd was:
Share capital $85,000
Retained earnings $10,000
Additional information
Required: Complete the following integrated worksheet
Consolidation worksheet 30 June 20X2
Dr./Cr
Baker Ltd
Portland Ltd
Elimination
Consolidated Statement
Dr
Cr
Revenue
Cr
300,000
130,000
Less: Expenses
Dr
150,000
88,000
Profit
Cr
150,000
42,000
Retained earnings 1-7-20X1
Cr
100,500
10,000
Retained earnings 30-06-20X2
Cr
250,500
52,000
Share capital
Cr
100,000
85,000
Non-current liabilities
Cr
50,500
7,000
Current liabilities
Cr
15,000
6,000
416,000
150,000
Share in Portland Ltd
Dr
100,000
Other non-current assets
Dr
250,000
130,000
Current assets
Dr
66,000
20,000
416,000
150,000
2
The accounts of the group entity, Star Ltd and Track Ltd, as 30 June, 20X2, show the following:
Intragroup sales during the year ended 30 June 20X2 were $20,000
Intragroup unrealised profit in inventory at 1st July 20X1 was $1,500
Intragroup unrealised profit in inventory at 30 June 20X2 was $1,000
Consolidation worksheet 30 June 20X2
Dr./Cr
Star
Ltd
Track Ltd
Elimination
Consolidated Statement
Dr
Cr
Sales
Cr
267,600
217,000
Inventory 1-7-20X1
Dr
28,000
19,000
Purchase
Dr
104,000
111,000
132,000
130,000
Inventory 30-06-20X2
Cr
32,000
22,000
Retained earnings
Cr
5,000
4,000
Assets
Inventory
Dr
32,000
22,000
Required: Complete the elimination column in the extract from the worksheet for intragroup sales/purchase and unrealised profit in inventory.
3
On 1st July, 20X1 Vulcan Ltd acquired all the share capital of Woden Ltd for $220,000
At that date the equity of Woden Ltd was:
Share capital 200,000
General reserve 10,000
Retained earnings 4,000
Additional information
Intragroup sales during the year ended 30 June 20X2 were $64,000
Unrealised profit in intragroup inventory at 1st July 20X1 was $1,500
Unrealised profit in intragroup inventory at 30 June 20X2 was $8,000
Consolidation worksheet 30 June 20X2
Dr./Cr
Vulcan Ltd
WodenLtd
Elimination
Consolidated Statement
Dr
Cr
Sales
Cr
267,600
217,000
Inventory 1-7-20X1
Dr
28,000
19,000
Purchase
Dr
104,000
111,000
132,000
130,000
Inventory 30-06-20X2
Cr
32,000
22,000
Cost of goods sold
Dr
100,000
108,000
Gross profit
Cr
167,600
109,000
Expenses excluding finance cost
Dr
64,000
42,000
Finance cost
Dr
36,000
26,000
Total expenses
Dr
100,000
68,000
Profit before tax
Cr
67,600
41,000
Less: Income tax expenses
Dr
30,000
20,000
Profit
Cr
37,600
21,000
Retained earnings 1-7-20X1
Cr
5,000
4,000
Available retained earnings
Cr
42,600
25,000
Appropriation:
To General Reserve
Dr
5,000
23,000
Declared Dividend
Dr
25,000
-
Total appropriation
Dr
30,000
23,000
Retained earnings 30-06-20X2
Cr
12,600
2,000
Consolidation worksheet 30 June 20X2
Dr./Cr
Baker Ltd
Portland Ltd
Elimination
Consolidated Statement
Dr
Cr
Revenue
Cr
300,000
130,000
Less: Expenses
Dr
150,000
88,000
Profit
Cr
150,000
42,000
Retained earnings 1-7-20X1
Cr
100,500
10,000
Retained earnings 30-06-20X2
Cr
250,500
52,000
Share capital
Cr
100,000
85,000
Non-current liabilities
Cr
50,500
7,000
Current liabilities
Cr
15,000
6,000
416,000
150,000
Share in Portland Ltd
Dr
100,000
Other non-current assets
Dr
250,000
130,000
Current assets
Dr
66,000
20,000
416,000
150,000
Explanation / Answer
Baker Ltd Portland Ltd Elimination Consolidated Statement Dr. Cr. Revenue Cr $300,000.00 $130,000.00 $430,000.00 Less: Expenses Dr $150,000.00 $88,000.00 $238,000.00 Profit Cr $150,000.00 $42,000.00 $192,000.00 Retained earnings 1-7-20X1 Cr $100,500.00 $10,000.00 $10,000.00 $100,500.00 Retained earnings 30-06-20X2 Cr $250,500.00 $52,000.00 $292,500.00 Share capital Cr $100,000.00 $85,000.00 $85,000.00 $100,000.00 Non-current liabilities Cr $50,500.00 $7,000.00 $57,500.00 Current liabilities Cr $15,000.00 $6,000.00 $21,000.00 $416,000.00 $150,000.00 $471,000.00 Share in Portland Ltd Dr $100,000.00 $100,000.00 Other non-current assets Dr $250,000.00 $130,000.00 $380,000.00 Current Assets Dr $66,000.00 $20,000.00 $86,000.00 Goodwill on Consolidation Dr $5,000.00 $5,000.00 $416,000.00 $150,000.00 $100,000.00 $100,000.00 $471,000.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.