REQUIRED

1.Prepare the consolidation worksheet journal entries for Ripple Ltd and its controlled entity as at 30 June 2023 and post them to a consolidation worksheet.

The following financial statements of Ripple Ltd and its subsidiary Razan Ltd have been extracted from their financial records at 30 June 2023. Ripple Ltd ($) Razan Ltd (S) Detailed reconciliation of opening and dosing retained earnings Sales revenue 1725 000 1 450 000 Cost of goods sold (1 160 000) (595 000) Gross profit 565 000 855 000 Dividend revenue from Razan Itd 186 000 Management fee revenue 66 250 Profit on sale of plant 87 500 Expense Administrative expenses (77000) (96 750) Depreciation (61 250) (142 000) Management fee expense (66 250) Other expenses (252750) (192 500) Profit before tax 513 750 357 500 Taxexpense (153 750) (105 500) Profit for the year 360 000 252 000 Retained earning-1 July 2022 798 500 598 000 1 158 500 850 000 Dividends paid (343500) (232 500) Retained earnings30 June 2023 815 000 617 500 Statement of financial position Shareholders' equity Retained earnings 815 000 617 500 Share capital 875 000 500 000 Current liabilities Accounts payable 136 750 115 750 Tax payable 103 250 62 500 Non-current liabilities Loans 433 750 290 000 2 363 750 1585 750 148 500 230 000 155 750 72 500 Cumont assess Account creble Inventory Non-current se Land and building Plant- Accumulate apreciation Investment in Prane, Lac 560 000 749 625 (214 375) 890 000 2 363 750 815 000 889 500 347 000) 1 585 750 Other information Rippleltd had acquired its 80 per cent interest in Razan Ltd on 1 July 2014, that is, nine years earlier. At that date the capital and reserves of Razan Ltd were: Share piel $500 OLD Resired Emir S425 000 $925 000 At the date of acquisition all assets were considered to be fairly valued. The management of Ripple Ltd measures any non-controlling interest at the proportionate share of Razanstid's identifiable net assets. . During the year, Ripple Ltd made total sales to Bazan Ltd of $162 500, while Razan Ltd sold $130 000 in inventory to Ripple Ltd. The opening inventory in Ripple Ltd as at 1 July 2022 included inventory acquired from Bazanltd of $105 000 that had cost Razan Ltd $87 500 to produce. The closing inventory in Ripele.Ltd includes inventory acquired from Rezan Ltd at a cost of $84 000. This had cost Bazan Ltd $70 000 to produce. The closing inventory of Bazan Ltd includes inventory acquired from Ripple Ltd at a cost of $30 000. This had cost Ripple Ltd $24 000 to produce. The management of Ripple Ltd believe that goodwill acquired was impaired by $7500 in the current financial year. Previous impairments of goodwill amounted to $56 250. On 1 July 2022 Ripple Ltd sold an item of plant to Razan Ltd for $290 000 when its carrying value in RippleLtd's accounts was $202 500 (cost of $337 500, accumulated depreciation of $135 000). This plant is assessed as having a remaining useful life of six years. . Bazan Ltd paid $66 250 in management fees to Ripple Ltd. The tax rate is 30 per cent