Consolidation Worksheet

ASSIGNMENT CONSOLIDATION WORKSHEET On 1 July 2008, S mootong Ltd acquired all the sh bes of Xian Ltd on a cum div basis. At this meshing, the uprightness and liability sections of Xian Ltds description of financial position showed the adjacent balances: Share Capital (60 000 shares)$60 000 General Reserve$30 000 Retained Earnings$21 000 separate Reserves$6 000 Dividend collectable$5 000 The dividend payable at erudition assignment was subsequently pay in September 2008. At learnedness date, all the identifiable assets and liabilities of Xian Ltd were encipher at amounts equal to mean(a) value except for: CarryingFair beatValue account$50 000$56 000 Machinery (cost $17 000)15 00016 000 Equipment (cost $30 000)24 00032 000 Land18 48024 480 A gift dividend, on the basis of half-dozen [6] ordinary bicycle shares for every(prenominal) sixty [60] ordinary shares held, was paid in January 2010 erupt of Other Reserves existing at acquisition date. The descent on hand in Xian Ltd at 1 July 2008 was exchange during the sideline 12 months. The machinery which had a farther five- family life on acquisition date, was sold on 1 January 2010. The land on hand at acquisition date had been sold by 30 June 2009. The equipment was estimated to have a only 8 year life.

At 1 July 2008, Xian Ltd had not save any goodwill. e evaluation adjustments are made on desegregation and, on acknowledgment of a business combination valuation reserve, a change everywhere is made to retained profit on consolidation. Additional fostering: a) On 1 July 2009, Xian Ltd has on hand descent economic consumption $12 000 transferred from Shandong Ltd in June 2009. The account had previously cost Shandong Ltd $11 800. Profit in fund on hand at 30 June 2009 is $200. By 30 June 2010, Xian Ltd had sold all $12 000 of the inventory to external parties. b) On 1 January 2010, Shandong Ltd acquired $15 000 creditable of inventory for cash from Xian Ltd. The inventory had previously cost Xian Ltd $11,000. By...If you peck to get a expert essay, order it on our website: Ordercustompaper.com

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