NCI 2009

NCI 2009 - Page 1 of 3 Part B Written Answers Required (50...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Page 1 of 3 Part B Written Answers Required (50 marks) Question 51 (25 marks) Consolidation Journal Entries Including NCI On 1 July 2004 Parent Ltd acquired 75% of the ordinary voting shares of Sub Ltd at a cost of $55,200. At this date the share capital of Sub Ltd is $60,000 and the retained earnings are $12,000. At 1 July 2004 all of the identifiable assets and liabilities of Sub Ltd are recorded at fair value. The trial balances of the two companies at 30 June 2009 are shown below. Trial balances As at 30 June 2009 Parent Ltd Sub Ltd Dr Cr Dr Cr Share capital 80,000 60,000 Retained earnings (1/7/08) 38,000 29,000 General reserve 10,000 Current tax liability 17,000 5,800 Plant 60,000 140,000 Accumulated depreciation plant 34,000 61,000 Shares in Sub Ltd 55,200 Debentures in Sub Ltd 5,000 Inventory 24,000 31,000 Accounts receivable 28,100 3,000 Deferred tax asset 4,000 10,000 Sales revenue 100,000 160,000 Cost of sales 68,000 117,000 Selling expenses 8,000 12,000 Administrative expenses 3,000 3,000 Financial expenses 3,000 4,000 Income tax expense...
View Full Document

Page1 / 3

NCI 2009 - Page 1 of 3 Part B Written Answers Required (50...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online