QUESTION $11$

Consolidation worksheet for financial year ended $30$ June $2021$

Chandler

Joey

Adjustments

Consolidated

Ltd

Ltd

Debit

Ref

Credit

Entity

$$\text{'}000$

$$\text{'}000$

$$\text{'}000$

$$\text{'}000$

$$\text{'}000$

Sales revenue

$4,620$

$2,840$

$530$

f

$6,930$

Less cost of goods sold

Opening inventories

$680$

$630$

i

$30$

$1,280$

Add purchases

$3,600$

$2,120$

f

$530$

$5,190$

Less closing inventories

$710$

$440$

$20$

g

$1,130$

Cost of goods sold

$3,570$

$2,310$

$?$

Gross profit

$1,050$

$530$

$?$

Dividend revenue

$88$

$0$

$88$

j

$-$

Management fee revenue

$35$

$0$

$35$

d

$-$

Interest revenue

$0$

$9$

$9$

e

$-$

Depreciation expense

$160$

$125$

l

$10$

$275$

Finance costs

$181$

$35$

e

$9$

$207$

Other expenses

$204$

$49$

$35$

c$/$d

$35$

$253$

Profit before tax

$628$

$330$

$?$

Tax expense

$201$

$97$

$12$

i$/$g$/$l

$6$

$304$

Profit after tax for the year

$427$

$233$

$?$

Retained earnings $1$ July $2020$

$705$

$429$

$337$

b$/$i$/$l

$38$

$835$

Dividends paid

$(57)$

$(32)$

j

$32$

$(57)$

Dividends declared

$(121)$

$(56)$

j

$56$

$(121)$

Retained earnings $30$ June $2021$

$954$

$574$

$1,208$

Issued capital

$800$

$350$

$350$

b

$800$

Revaluation surplus

$210$

$0$

$210$

Fair value adjustment

$56$

b$/$a

$56$

$-$

Shareholders$$ equity

$1,964$

$924$

$?$

Assets

Cash

$78$

$117$

$195$

Accounts receivable

$72$

$35$

h

$25$

$82$

Dividends receivable

$56$

$0$

k

$56$

$-$

Inventories

$710$

$440$

g

$20$

$1,130$

Investment in Joey Ltd

$750$

$0$

b

$750$

$-$

Loan to Chandler Ltd

$0$

$150$

e

$150$

$-$

Land

$720$

$250$

$80$

a

$1,050$

Buildings

$1,500$

$780$

$2,280$

Accumulated depreciation

$(320)$

$(494)$

$(814)$

Plant and equipment

$850$

$450$

$25$

l

$1,325$

Accumulated depreciation

$(235)$

$(210)$

$30$

l

$85$

$(500)$

Goodwill $($net$)$

$94$

b$/$c

$35$

$59$

Deferred tax asset

$24$

g$/$l

$9$

$15$

Total assets

$4,181$

$1,518$

$4,822$

Less liabilities

Current taxes payable

$111$

$87$

$198$

Accounts payable

$292$

$50$

$25$

h

$317$

Dividend payable

$121$

$56$

$56$

k

$121$

Loan from Joey Ltd

$150$

$0$

$150$

e

$-$

Mortgage loan

$1,253$