On 1July 2019, Pet Ltd acquired 75% of the ordinary capital of Set Ltd. There were...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1July 2019, Pet Ltd acquired 75% of the ordinary capital of Set Ltd. There were no preference shares. The outline income statements of the two companies for the year ended 30 June 2019 are as follows: Pet Itd Rs'000 100 Set Itd Rs'000 Sales Cost of sales 50 (50) 50 (25) 25 Gross profit Admin expenses Distribution expenses Dividend received from Set Ltd (10) (5) 3 (6) (4) Dividend received from listed co. Finance cost (4) 40 (4) 11 Profit before tax Taxation (15) 25 (5) 6 Profit for the year Other comprehensive income: Revaluation gain 10 4 35 10 The following information is also available: (i) During the year, Set Ltd sold goods to Pet Ltd for Rs18 million with mark up being 20%. At the year-end, half of the goods were still held as inventory by Pet Ltd. (ii) Goodwill arising on consolidation has suffered no impairment loss. REQUIRED: Prepare the consolidated statement of comprehensive income for the year ended 30 June 2019. On 1July 2019, Pet Ltd acquired 75% of the ordinary capital of Set Ltd. There were no preference shares. The outline income statements of the two companies for the year ended 30 June 2019 are as follows: Pet Itd Rs'000 100 Set Itd Rs'000 Sales Cost of sales 50 (50) 50 (25) 25 Gross profit Admin expenses Distribution expenses Dividend received from Set Ltd (10) (5) 3 (6) (4) Dividend received from listed co. Finance cost (4) 40 (4) 11 Profit before tax Taxation (15) 25 (5) 6 Profit for the year Other comprehensive income: Revaluation gain 10 4 35 10 The following information is also available: (i) During the year, Set Ltd sold goods to Pet Ltd for Rs18 million with mark up being 20%. At the year-end, half of the goods were still held as inventory by Pet Ltd. (ii) Goodwill arising on consolidation has suffered no impairment loss. REQUIRED: Prepare the consolidated statement of comprehensive income for the year ended 30 June 2019.
Expert Answer:
Answer rating: 100% (QA)
Consolidated Statement of Comprehensive Income for the year e... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
On January 1, Year 5, PET Company acquired 900 ordinary shares of SET Company for $63,000. On this date, the shareholders equity accounts of SET Company were as follows: Ordinary shares (1,000 no par...
-
On 1 July 2016, Kingdom Ltd acquired two assets within the same class of plant and equipment, Information on these assets is as follows: The machines are expected to generate benefits evenly over...
-
Sunnybank Ltd acquired all issued share capital of Sunnybank Hills Ltd on 1 July 2019 for a cash payment of $700,000. The share capital and reserves of Sunnybank Hills Ltd at the date of acquisition...
-
What risks accompany a standby credit letter for (a) the issuer and (b) the beneficiary?
-
A cylindrical tank subjected to internal pressure p is simultaneously compressed by an axial force F = 72 kN (see figure). The cylinder has diameter d = 100 mm and wall thickness t = 4 mm. Calculate...
-
1. Refer to the information for Kinsella Seed above. What journal entry should be recorded on December 31, 2019? a. Debit Interest Expense 5,000; credit Interest Payable 5,000. b. Debit Interest...
-
The data in Table 19.8 are from Gamage et al. (2007). These data are for 36 months of medical-care payments, from January 2001 through December 2003, inclusive. These are payments for medical-care...
-
The partnership of Matteson, Richton, and OToole has existed for a number of years. At the present time the partners have the following capital balances and profit and loss sharing percentages:...
-
18. On August 20, Walter Manufacturing Ltd agrees to exchange its accounts payable for a 90-day, 12%, $8,000 note from Fidalgo Company. What is the journal entry made by Fidalgo Company to record the...
-
Given the following sketches, generate an Excel spreadsheet: 1) Count the total degrees of freedom in the sketch. 2) Count the constraints 3) Provide the number of dimensions that are necessary to...
-
Which of the following is an advantage of the cash payback method? a. It takes into consideration the time value of money. b. It emphasizes accounting income. c. It is easy to use. d. It includes the...
-
ACCT 4250/6250 Partnership Return Project Three friends decide to form a restaurant business. They decide not to incorporate and form a general partnership. Brendan has a 40% capital and profits...
-
A mortgage cash account is: An account that a customer uses to make their mortgage payments. An account that represents the extra payments a customer has made on their mortgage which they can access...
-
On May 1, Year 1, Vladmir moved from Thompson, Manitoba, to Rocky Mountain House, Alberta, to start a job with Nuclear Inc.. As a result of the move, Nuclear provided Vladmir with a $4,680 moving...
-
The fact that Apple has no manufacturing facilities of its own Question 21 options: has been problematic for Apple in terms of debt. has caused it to build up massive debt on its balance sheet. has...
-
Discuss the cash flow cycle and its relevance to cash management. Explain the cash flow cycle and its significance to cash management for a firm. Discuss the interrelationships among the different...
-
What are the first partial derivative for f(x1,x2) = ln(2x2)-x? Xa 5
-
President Lee Coone has asked you to continue planning for an integrated corporate NDAS network. Ultimately, this network will link all the offices with the Tampa head office and become the...
-
EADS Ltd. is involved in a restructuring related to its energy division. The company controller and CFO are considering the following costs to accrue as part of the restructuring. The costs are as...
-
Ronald Long has just learned he has won a $500,000 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Ronald takes all the money today, the government will...
-
What basic questions must be answered before the amount of the depreciation charge can be computed?
-
A container of an organic liquid a $25^{\circ} \mathrm{C}$ has a mass of $1100 \mathrm{~kg}$ and a volume of $0.94 \mathrm{~m}^{3}$. Find the liquid's weight, its density, and its specific gravity.
-
What is the pressure one mile $(1.6 \mathrm{~km})$ beneath the ocean's surface?
-
A vertical, cylindrical tank with a diameter of $10 \mathrm{~m}$ and a depth of $4 \mathrm{~m}$ is filled to the top with water at $25^{\circ} \mathrm{C}$. If the water is heated to $60^{\circ}...
Study smarter with the SolutionInn App