Question

Question 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
Share capital	Cr	500,000	200,000
General reserve	Cr	15,000	33,000
Trade and other payable	Cr	72,400	51,000
Non-current liabilities	Cr	50,000	20,000
		650,000	306,000
Shares in Woden Ltd	Dr	220,000	-
Other non-current assets	Dr	189,560	210,000
Inventory	Dr	32,000	22,000
Receivable	Dr	208,440	74,000
Goodwill on consolidation	Dr	-	-
		650,000	306,000

Requirement: Complete the worksheet.

Answer 1