Consolidation Worksheet

ASSIGNMENT CONSOLIDATION WORKSHEET On 1 July 2008, S commitong Ltd acquired every(prenominal) the shares of Xian Ltd on a cum div basis. At this date, the equity and liability sections of Xian Ltds description of financial position showed the following balances: Share pileus (60 000 shares)$60 000 General Reserve$30 000 Retained earnings$21 000 Other Reserves$6 000 Dividend collectable$5 000 The dividend payable at acquisition date was subsequently give in September 2008. At acquisition date, all the recognizable assets and liabilities of Xian Ltd were enter at amounts equal to fair value overleap for: CarryingFair beatValue Inventory$50 000$56 000 Machinery ( exist $17 000)15 00016 000 Equipment ( approach $30 000)24 00032 000 Land18 48024 480 A bonus dividend, on the basis of six [6] ordinary pedal shares for every sixty [60] ordinary shares held, was paid in January 2010 ruin of Other Reserves existing at acquisition date. The line of credit on hand in Xian Ltd at 1 July 2008 was swop during the following 12 months. The machinery which had a further 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 further 8 grade life.

At 1 July 2008, Xian Ltd had not recorded any goodwill. military rating adjustments are made on consolidation and, on address of a business combination valuation reserve, a motley over is made to retained earnings on consolidation. supernumerary breeding: a) On 1 July 2009, Xian Ltd has on han d record expenditure $12 000 transferred f! rom Shandong Ltd in June 2009. The inventory had previously cost Shandong Ltd $11 800. Profit in inventory 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 worthy of inventory for cash from Xian Ltd. The inventory had previously cost Xian Ltd $11,000. By...If you fate to get a full essay, order it on our website: BestEssayCheap.com

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