Question
Part A: Worksheet analysis Galway Ltd ($) Dublin Ltd ($) Ref Adjustments Ref Dr ($) Cr ($) Sales revenue 180 000 131 000 2 25
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 |
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started