B407F Mid-term revision worksheet-1

B407F Mid-term revision worksheet-1 - B407F Mid-term...

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B407F Mid-term revision solution Question 1 (a) Consolidation adjustments Debit Credit $000 $000 Elimination of investment Share capital Retained earnings at acquisition Contingent assets Goodwill arising on consolidation Investment in Fork NCI (W1-Elimination of investment in subsidiary) Administration expenses P & M (Accumulated Depreciation) Revenue Cost of sales (Purchases) Cost of sales Inventories (W4 – Elimination of inter-company sale of inventory) Profit for the year – gain on disposal of fixed assets Plant and equipment Plant and equipment Administration expenses (Depreciation) (W5-Elimination of inter-company sale of non-current depreciable assets) Dividend income NCI Dividend paid (W3 – Elimination of inter-company dividend) Statement of Income NCI (W6 NCI's share of post acquisition profits) Cash in transit 1
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Current account with Knife Current account with Fork Current account with Knife (b) Consolidated Income Statement for the year ended 31 December Year 3 $000 Revenue Cost of sales Gross profit Selling and distribution expenses
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This note was uploaded on 02/24/2012 for the course ACT 407 taught by Professor Mshui during the Fall '11 term at The Open University.

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B407F Mid-term revision worksheet-1 - B407F Mid-term...

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