Why is the consolidated balance of the account Loan to Joey Ltd reduced to zero?
| | a. | Intragroup loans are allowed. |
| | b. | Intragroup loans are recognised under AASB110. |
| | c. | Intragroup loans are not permitted to be recognised under AASB10. |
| | d. | Intragroup loans are not recognised under AASB112. |
279 09 489 - e Consolidation worksheet for financial year ended 30 June 2021 Joey Chandler Adjustments Consolidated Ltd Ltd Debit Ref Credit Entity $'000 $'000 $'000 $'000 $'000 Sales revenue 4,360 1,570 500 f 5,430 Less cost of goods sold Opening inventories 375 256 i 30 601 Add purchases 3,080 1,104 f 500 3,684 Less closing inventories 425 40 664 Cost of goods sold 3,030 1,081 ? Gross profit 1,330 ? Dividend revenue 70 0 70 j Management fee revenue 25 0 25 d Interest revenue 0 15 15 e Depreciation expense 245 187 1 20 412 Finance costs 105 98 15 188 Other expenses 79 20 c/d 399 Profit before tax 750 140 ? Tax expense 265 45 15.00 i/g/1 12.00 313 Profit after tax for the year 485 95 ? Retained earnings 1 July 2020 849 394 233 b/i/1 64 1,074 Dividends paid (53) (28) J 28 (53) Dividends declared (107) (42) j 42 (107) Retained earnings 30 June 1,174 419 1,411 2021 Issued capital 750 400 400 b 750 Revaluation surplus 190 0 190 Fair value adjustment 84 b/a 84 Shareholders' equity 2,114 819 ? Assets Cash 190 170 360 Accounts receivable 173 109 h 40 242 95 ? 394 233 64 485 849 (53) (107) 1,174 (28) (42) b/i/ j j 28 42 1,074 (53) (107) 1,411 419 750 400 400 b 190 o 750 190 84 b/a 84 2,114 819 ? 190 170 360 173 109 h 40 242 42 0 k 42 425 279 8 40 664 640 0 b Profit after tax for the year Retained earnings 1 July 2020 Dividends paid Dividends declared Retained earnings 30 June 2021 Issued capital Revaluation surplus Fair value adjustment Shareholders' equity Assets Cash Accounts receivable Dividends receivable Inventories Investment in Chandler Ltd Loan to Joey Ltd Land Buildings Accumulated depreciation Plant and equipment Accumulated depreciation Goodwill (net) Deferred tax asset Total assets Less liabilities Current taxes payable Accounts payable Dividend payable Loan from Chandler Ltd Mortgage loan Deferred tax liabilities 0 640 250 250 1,099 450 120 a 968 (525) 1,440 (475) 1,025 (275) 1,669 2,408 (1,000) 1,725 (595) 16 690 10 1 (290) 60 1 90 36 20 b/c g/ 35 25 36.00 18.00 78 4,319 2,126 5,567 111 87 198 292 50 40 h 302 107 42 42 k 107 250 0 250 e 1,100 1,255 190 2,355 254 28 a 36 Net assets 2,114 819 1,996.00 1,996.00 ? 279 09 489 - e Consolidation worksheet for financial year ended 30 June 2021 Joey Chandler Adjustments Consolidated Ltd Ltd Debit Ref Credit Entity $'000 $'000 $'000 $'000 $'000 Sales revenue 4,360 1,570 500 f 5,430 Less cost of goods sold Opening inventories 375 256 i 30 601 Add purchases 3,080 1,104 f 500 3,684 Less closing inventories 425 40 664 Cost of goods sold 3,030 1,081 ? Gross profit 1,330 ? Dividend revenue 70 0 70 j Management fee revenue 25 0 25 d Interest revenue 0 15 15 e Depreciation expense 245 187 1 20 412 Finance costs 105 98 15 188 Other expenses 79 20 c/d 399 Profit before tax 750 140 ? Tax expense 265 45 15.00 i/g/1 12.00 313 Profit after tax for the year 485 95 ? Retained earnings 1 July 2020 849 394 233 b/i/1 64 1,074 Dividends paid (53) (28) J 28 (53) Dividends declared (107) (42) j 42 (107) Retained earnings 30 June 1,174 419 1,411 2021 Issued capital 750 400 400 b 750 Revaluation surplus 190 0 190 Fair value adjustment 84 b/a 84 Shareholders' equity 2,114 819 ? Assets Cash 190 170 360 Accounts receivable 173 109 h 40 242 95 ? 394 233 64 485 849 (53) (107) 1,174 (28) (42) b/i/ j j 28 42 1,074 (53) (107) 1,411 419 750 400 400 b 190 o 750 190 84 b/a 84 2,114 819 ? 190 170 360 173 109 h 40 242 42 0 k 42 425 279 8 40 664 640 0 b Profit after tax for the year Retained earnings 1 July 2020 Dividends paid Dividends declared Retained earnings 30 June 2021 Issued capital Revaluation surplus Fair value adjustment Shareholders' equity Assets Cash Accounts receivable Dividends receivable Inventories Investment in Chandler Ltd Loan to Joey Ltd Land Buildings Accumulated depreciation Plant and equipment Accumulated depreciation Goodwill (net) Deferred tax asset Total assets Less liabilities Current taxes payable Accounts payable Dividend payable Loan from Chandler Ltd Mortgage loan Deferred tax liabilities 0 640 250 250 1,099 450 120 a 968 (525) 1,440 (475) 1,025 (275) 1,669 2,408 (1,000) 1,725 (595) 16 690 10 1 (290) 60 1 90 36 20 b/c g/ 35 25 36.00 18.00 78 4,319 2,126 5,567 111 87 198 292 50 40 h 302 107 42 42 k 107 250 0 250 e 1,100 1,255 190 2,355 254 28 a 36 Net assets 2,114 819 1,996.00 1,996.00
