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Consolidation Journal Entries Guide

PQR Ltd acquired all shares of RR Ltd on July 1, 2015 when RR Ltd had share capital of $160,000 and retained earnings of $20,000. The document provides a consolidation worksheet to record the acquisition and consolidate the financial statements of PQR Ltd and RR Ltd as of June 30, 2015. It lists assets, liabilities, equity, revenues and expenses of each company and includes elimination entries for intercompany balances to arrive at the consolidated financial statements.

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Opal-Kaitom Promthananon
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5 views1 page

Consolidation Journal Entries Guide

PQR Ltd acquired all shares of RR Ltd on July 1, 2015 when RR Ltd had share capital of $160,000 and retained earnings of $20,000. The document provides a consolidation worksheet to record the acquisition and consolidate the financial statements of PQR Ltd and RR Ltd as of June 30, 2015. It lists assets, liabilities, equity, revenues and expenses of each company and includes elimination entries for intercompany balances to arrive at the consolidated financial statements.

Uploaded by

Opal-Kaitom Promthananon
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Question

On 1 July 2015 PQR Ltd acquired all shares capital of RR Ltd, when the equity of RR Ltd was
Share Capital
$ 160,000
Retained earnings $ 20,000
Required:
Prepare the consolidation journal entries and completes the consolidation worksheet.
Consolidation Worksheet
30 June 2015

Gross profit
Dividend from XYZ Ltd

ABC

XYZ

Ltd

Ltd

260,000.00
23,000.00

Eliminations
Dr
$

Consolidated
Cr

Statements

160,000.00
-

420,000.00
15,00
0.00
8,00
0.00

283,000.00

160,000.00

443,000.00

Expenses

110,000.00

65,000.00

175,000.00

Profit before tax

173,000.00

95,000.00

245,000.00

65,000.00

35,000.00

100,000.00

108,000.00

60,000.00

145,000.00

30,000.00

30,000.00

138,000.00

90,000.00

Interim dividend paid

17,000.00

8,000.00

8,000

17,000.00

Declared dividend

20,000.00

15,000.00

15,000

20,000.00

37,000.00

23,000.00

101,000.00

67,000.00

Less Income tax expense


Profit
Retained earnings 1.7.2010
Available

20,000.00

15,000

55,000.00
200,000.00

Appropriations:

Total appropriations
Retained earnings 30.6.2011
Share capital
Other current liabilities

400,000.00

160,000.00

60,000.00

32,000.00

37,000.00
163,000.00
160,0
00.00

400,000.00
92,000.00

15,0
00.00

Dividend payable

25,000.00

15,000.00

Non-current liabilities

80,000.00

35,000.00

115,000.00

666,000.00

309,000.00

795,000.00

Shares in XYZ Ltd

195,000.00

Other non-current assets

260,000.00

175,000.00

Current assets

211,000.00

134,000.00

666,000.00

309,000.00

Goodwill on consolidation

25,000.00

195,000

15,00
0.00
233,00
0.00

233000

435,0
00.00
345,0
00.00
15,0
00.00
795,0
00.00

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