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can someone help with this accounting problem? The following are the Statements of Financial Position of Kennelly plc, Heaney Ltd and Durcan Ltd at 30
can someone help with this accounting problem?
The following are the Statements of Financial Position of Kennelly plc, Heaney Ltd and Durcan Ltd at 30 September 2020 Assets Kennelly plc Heaney Ltd Durcan Ltd Non-current assets 6000 '000 '000 Property, plant and equipment 981 780 98 Investments Current assets Inventory 465 300 29 Trade receivables 225 135 18 Cash 120 9 1 Total assets 2,263 1,224 146 472 Equity and Liabilities Equity Ordinary share capital 1,200 450 60 General reserve 330 75 Retained earnings 225 150 42 Non-current hobilities 5% Debenture 150 Current Mobilities Trade payables 268 264 24 Taxation 240 135 20 Total equity and liabilities 2,263 1,224 146 Notes 1 Kennelly plc hold two investments: Heaney Ltd and Durcan Ltd. They acquired their 9,000 ordinary shares Durcan Ltd on the 1 June 2020 for 18,000. The retained earnings of Durcan Ltd at 30 September 2019 were 33,000 1. Kennelly plc hold two investments: Heaney Ltd and Durcan Ltd. They acquired their 9,000 61 ordinary shares Durcan Ltd on the 1 June 2020 for 18,000. The retained earnings of Durcan Ltd at 30 September 2019 were C33,000. 2. Some years earlier on 1 August 2007, they acquired 270,000 of the el ordinary shares and 20% of 5% debentures in Heaney Ltd. At the date of acquisition, the general reserves and retained earnings of Heaney Led were 35,000 and 50,000 respectively. The fair value of non-controlling interests in Heaney Ltd at the date of acquisition was 308,000. 3. Kennelly plc account for non-controlling interests using method 2 - full goodwill method. Goodwill in Heaney Ltd at 30 September 2020 was deemed to be impaired by 60,000. 4 Kennelly ple's trade receivables includes a balance of 90,000 owing from Heaney Ltd Heaney Led's trade payables include a balance of C75,000 owing to Kennelly plc. 5. Heaney Ltd's stores manager confirmed receipt of goods from Kennelly plc on 1 October 2020, despite Kennelly plc dispatching these goods on 28 September 2020. Kennelly pla Issued these goods at cost of 7,000. On 29 September 2020 Heaney Ltd issued an 8,000 payment to Kennelly pic which was not received by Kennelly plc until 2 October 2020, 6 All debenture interest for the year ended 30 September 2020 was paid by Heaney Ltd Page 2 of 4 Requirement: Prepare the Consolidated Statement of Financial Position of the Kennelly plc Group at 30 September 2020 Please use T account format for all working accounts; including Cost of Control Account Consolidated Revenue Reserves Account Consolidated General Reserve Account Non controlling Interest Account 5% Debenture Account Current Accounts with accompanying journal entries - for both companies . . . The following are the Statements of Financial Position of Kennelly plc, Heaney Ltd and Durcan Ltd at 30 September 2020 Assets Kennelly plc Heaney Ltd Durcan Ltd Non-current assets 6000 '000 '000 Property, plant and equipment 981 780 98 Investments Current assets Inventory 465 300 29 Trade receivables 225 135 18 Cash 120 9 1 Total assets 2,263 1,224 146 472 Equity and Liabilities Equity Ordinary share capital 1,200 450 60 General reserve 330 75 Retained earnings 225 150 42 Non-current hobilities 5% Debenture 150 Current Mobilities Trade payables 268 264 24 Taxation 240 135 20 Total equity and liabilities 2,263 1,224 146 Notes 1 Kennelly plc hold two investments: Heaney Ltd and Durcan Ltd. They acquired their 9,000 ordinary shares Durcan Ltd on the 1 June 2020 for 18,000. The retained earnings of Durcan Ltd at 30 September 2019 were 33,000 1. Kennelly plc hold two investments: Heaney Ltd and Durcan Ltd. They acquired their 9,000 61 ordinary shares Durcan Ltd on the 1 June 2020 for 18,000. The retained earnings of Durcan Ltd at 30 September 2019 were C33,000. 2. Some years earlier on 1 August 2007, they acquired 270,000 of the el ordinary shares and 20% of 5% debentures in Heaney Ltd. At the date of acquisition, the general reserves and retained earnings of Heaney Led were 35,000 and 50,000 respectively. The fair value of non-controlling interests in Heaney Ltd at the date of acquisition was 308,000. 3. Kennelly plc account for non-controlling interests using method 2 - full goodwill method. Goodwill in Heaney Ltd at 30 September 2020 was deemed to be impaired by 60,000. 4 Kennelly ple's trade receivables includes a balance of 90,000 owing from Heaney Ltd Heaney Led's trade payables include a balance of C75,000 owing to Kennelly plc. 5. Heaney Ltd's stores manager confirmed receipt of goods from Kennelly plc on 1 October 2020, despite Kennelly plc dispatching these goods on 28 September 2020. Kennelly pla Issued these goods at cost of 7,000. On 29 September 2020 Heaney Ltd issued an 8,000 payment to Kennelly pic which was not received by Kennelly plc until 2 October 2020, 6 All debenture interest for the year ended 30 September 2020 was paid by Heaney Ltd Page 2 of 4 Requirement: Prepare the Consolidated Statement of Financial Position of the Kennelly plc Group at 30 September 2020 Please use T account format for all working accounts; including Cost of Control Account Consolidated Revenue Reserves Account Consolidated General Reserve Account Non controlling Interest Account 5% Debenture Account Current Accounts with accompanying journal entries - for both companies Step by Step Solution
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