Question
Question Following are the balance sheets of two companies i.e. ABC Ltd and XYZ Pty Ltd. The latter is wholly owned by ABC Ltd. Liabilities
Question
Following are the balance sheets of two companies i.e. ABC Ltd and XYZ Pty Ltd. The latter is wholly owned by ABC Ltd.
| Liabilities | Assets | ||||
|
| ABC Ltd $ | XYZ Pty Ltd $ |
| ABC Ltd $ | XYZ Pty Ltd $ |
| Share capital | 500,000 | 200,000 | Sundry Assets | 480,000 | 260,000 |
| Accumulated Profit | 100,000 | 0 | 20,000 Shares of XYZ Pty Ltd | 200,000 | 0 |
| Sundry creditors | 80,000 | 60,000 |
|
|
|
| TOTALS | 680,000 | 260,000 | TOTALS | 680,000 | 260,000 |
Requirements:
- You are required to consolidate the two balance sheets. Your answer must be in accordance with AASB standard.
- Provide Journal entry for consolidation of XYZ Pty Ltd into books of ABC Ltd
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Auditing A Complete Guide
Authors: Gerardus Blokdyk
2023rd Edition
1038805538, 978-1038805539
