Part A: Worksheet analysis

	Galway Ltd ($)	Dublin Ltd ($)	Ref	Adjustments		Ref
				Dr ($)	Cr ($)
Sales revenue	180 000	131 000	2	25 000
Cost of sales	(88 000)	(58 000)			22 000	2
Gross profit	92 000	73 000
Dividend revenue	24 000	--	4 4	18 000 26 000
Service fee revenue	90 000		5	90 000
Proceeds from sale of equipment	--	148 000	3	120 000
Depreciation	(12 000)	(8 000)			1 000	3
Impairment loss - Goodwill	--	--	1c	5 000
Carrying amount of equipment sold	--	(40 000)			118 000	3
Service fee expense		(90 000)			90 000	5
Other expenses	(32 000)	(15 000)
Profit before tax	162 000	68 000
Less: Income tax expense	(48 600)	(20 400)	3	300	2 100	2
Profit for the year	113 400	47 600
Retained earnings (1/7/19)	72 000	80 000	1b	80 000
Dividend paid	--	(18 000)			18 000	4
Dividend declared	(26,000)	--			26 000	4
Retained earnings (30/6/20)	159 400	109 600
Share capital	165 000	95 000	1b	95 000
General reserve	30 000	25 000	1b	25 000
BCVR	--	--	1b	45 000	45,000	1a
Shareholders equity	354 400	229 600
Liabilities
Accounts payable	37 000	3 000
Other Payables	24 600	9 000
Dividend payable	26 000	--	4	26 000
Deferred Tax Liability	50 000	11 000
Total liabilities	137 600	23 000
Total liabilities & Equity	492 000	252 600
Assets	Galway Ltd ($)	Dublin Ltd ($)	Ref	Dr ($)	Cr ($)	Ref
Cash	25 000	22 600
Accounts receivable	12 000	8 000
Dividend receivable	52 000	--			26 000	4
Other receivables	9 000	12 000
Inventories	45 000	22 000			3 000	2
Investment in Dublin Ltd	240 000	--			240 000	1b
Land	52 000	84 000
Equipment	60 000	78 000			2 000	3
Accd depreciation	(38 000)	(26 000)	3	1 000
Buildings	55 000	62 000
Accd depreciation	(20 000)	(15 000)
Goodwill	--	5 000	1a	45 000
Less: Accd impt loss - Goodwill	--	--			5 000	1c
Deferred tax asset	--	--	2	2 100	300	3
Total assets	492 000	252 600