Exercise 22.9 ★ ★ ★ CONSOLIDATION WORKSHEET On 1 July 2014, Monique Ltd acquired all the shares of Madeleine Ltd for $137 200. At acquisition date, the equity of Madeleine Ltd consisted of: Share capital $80 000 General reserve 16 000 Retained earnings 21 000 On this date, all the identifi able assets and liabilities of Madeleine Ltd were recorded at fair value except for the following assets: Carrying amount Fair value Inventory Motor vehicles (cost $18 000) Furniture and fi ttings (cost $30 000) Land $50 000 15 000 24 000 18 480 $56 000 16 000 32 000 24 480 The inventory and land on hand in Madeleine Ltd at 1 July 2014 were sold during the following 12 months. The motor vehicles, which at acquisition date were estimated to have a 4-year life, were sold on 1 January 2016. Except for land, valuation adjustments are made on consolidation and, on realisation of a business combination valuation reserve, a transfer is made to retained earnings on consolidation. The furniture and fi ttings were estimated to have a further 8-year life. At 1 July 2014, Madeleine Ltd had not recorded any goodwill. The following trial balances were prepared for the companies at 30 June 2016: Credits Monique Ltd Madeleine Ltd Share capital General reserve Retained earnings (1/7/15) Debentures Final dividend payable Current tax liabilities Other payables Advance from Monique Ltd Sales revenue Other income Accumulated depreciation — Motor vehicles — Furniture and fi ttings $170 000 41 000 16 000 120 000 10 000 8 000 34 800 — 85 000 23 000 4 000 2 000 $ 80 000 22 000 29 500 — 3 000 2 500 10 100 10 000 65 000 22 000 2 000 6 000 $513 800 $252 100 Debits Cost of sales Other expenses Shares in Madeleine Ltd Land Motor vehicles Furniture and fi ttings Inventory Other assets Income tax expense Interim dividend paid Final dividend declared Deferred tax assets Advance to Madeleine Ltd $ 65 000 22 000 137 200 — 28 000 34 000 171 580 8 620 7 200 4 000 10 000 16 200 10 000 $ 53 500 27 000 — 24 480 22 000 37 300 70 320 3 100 2 000 2 000 3 000 7 400 — $513 800 $252 100 Additional information

(a) Intragroup transfers of inventory consisted of: 1/7/14 to 30/6/15: Sales from Monique Ltd to Madeleine Ltd $12 000 Profi t in inventory on hand 30/6/15 200 1/7/15 to 30/6/16: Sales from Monique Ltd to Madeleine Ltd 15 000 Profi t in inventory on hand 30/6/16 (incl. $50 from previous period sales) 1 000

(b) The tax rate is 30%. Required Prepare the consolidation worksheet for the preparation of the consolidated fi nancial statements for the period ended 30 June 2016.