Greffer Ltd acquired 75% of the issued capital of Knox Ltd on 1 July 2019. At acquisition date Knox Ltd’s accounting records included the following balances: Share Capital $265,000, Asset Revaluation Surplus $75,000, and Retained Earnings $150,000. All identifiable assets and liabilities of Knox Ltd are recorded at fair value and Greffer Ltd uses the partial goodwill method. The balance of retained earnings at 1 July 2020 is $220,000 and Knox Ltd makes a profit after tax of $55,000 in the year ended 30 June 2021. The tax rate is 30%. Required: Prepare the NCI journal entries for the consolidation worksheet at 30 June 2021 demonstrating the step approach. Note: The acquisition analysis and parents journal entries are not required.

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solution Step approach Calculation Amount the NCI share ... View the full answer