Rita Ltd owns all the share capital of Pidani Ltd. The income tax rate is 30%. i)

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Rita Ltd owns all the share capital of Pidani Ltd. The income tax rate is 30%.

i) On 1 January 2020, Rita Ltd provided a loan of $9 000 to Pidani Ltd. The loan remains outstanding as at year end.

ii) During 1 May 2020, Pidani Ltd declared a $3 000 dividend. The dividend was paid in 9 August 2020.

Required

In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet for the year ended 30 June 2020.

Related Book For answer-question

Basic Finance An Introduction to Financial Institutions, Investments and Management

ISBN: 978-1285425795

11th Edition

Authors: Herbert B. Mayo

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Posted Date: Aug 19, 2020 06:04 AM

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Rita Ltd owns all the share capital of Pidani Ltd. The income tax rate is 30%. i)

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Adjusting journal entries i For intragroup loan Cas... View the full answer

Basic Finance An Introduction to Financial Institutions, Investments and Management

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