Business combination valuation reserve dr 42 000 nci

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Business combination valuation reserve Dr 42 000 NCI Cr 142 000 B. Worksheet Entries at 30 June 2014 (6 marks) 1. Business combination valuation entries Plant Dr 40 000 Accumulated depreciation Dr 40 000 Deferred tax liability Cr 24 000 Business combination valuation reserve Cr 56 000 Depreciation expense Dr 8 000 Accumulated depreciation Cr 8 000 (10% x $80 000 p.a.) Deferred tax liability Dr 2 400 Income tax expense Cr 2 400 7
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Land Dr 100 000 Deferred tax liability Cr 30 000 Business combination valuation reserve Cr 70 000 Cost of sales Dr 60 000 Income tax expense Cr 18 000 Transfer from business combination valuation reserve Cr 42 000 2. Pre-acquisition entries Retained earnings (1/7/03) Dr 60 000 Share capital Dr 150 000 General reserve Dr 90 000 Business combination valuation reserve Dr 126 000 Goodwill Dr 74 000 Shares in Mouse Ltd Cr 500 000 Transfer from business combination valuation reserve Dr 31 500 Business combination valuation reserve Cr 31 500 3. NCI in equity at 1/7//13 Retained earnings (1/7/03) Dr 10 000 Share capital Dr 25 000 General reserve Dr 15 000 Business combination valuation reserve Dr 21 000 NCI Cr 71 000 8
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4. NCI in equity: 1/7/13 - 30/6/14 NCI share of profit Dr 8 100 NCI Cr 8 100 (25% x [80 000 – ($8 000 - 2 400) – ($60 000 - 18 000)]) Transfer from business combination valuation reserve Dr 10 500 Business combination valuation reserve Cr 10 500 (25% x $42 000) 9
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