Essays on Semester2,2009 Ford Ltd And Ghia Ltd Math Problem

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DebitCredit$$(1) Elimination of investment in Ghia LtdShare capital (4% x 200 000)800 000Retained profits 265 000Share in Ford Ltd1065000(2) Elimination of inter-company sales of inventorySales300 000Purchases300 000(3) Elimination of unrealised profit in opening inventoryRetained profit 1 July 20X2 265 000Opening inventory 265 000Income tax expense ($345000 x 30%)103 500Retained profit 103 500(8) Elimination of interim dividend paid Dividend received from Ghia Ltd ($0.30 x 200 000)60 000Interim dividend60 000(9) Elimination of final dividend proposedDividend payable (liability) (80% x 20 500)130 000Proposed dividend130 000Consolidation worksheet for the year ended 31 December 20X8AmountFord LtdGhia Ltd  EliminationsDebitConsolidation  $ $  $ $ $ Sales 4640,000  1850,000  300,000(1)    6190,000 Cost of Sales  2210,000   875,000          Purchases  75,000         300,000(1)   225,000Gross Profit 2430,000  975,000        3405,000 Dividend received from Ghia Ltd    130,000   60,000(2)     -  Total income 1525,000  765,000        2290,000 Total operating expenses 2057,000  300,000        2357,000 Operating profit before tax 625,000  675,000        202,875 Income tax expense 280,000  260,000  103,500(3)  436,500 Operating profit after tax 345,000  315,000        660,000 Retained profits  325,000  265,000   103,500(3)  486,500 Interim dividend (100,000)  (150,000)     60,000(2) (190,000) Proposed dividend (160,000)  (200,000)     16,400 (343,600) Share capital 1200,000  200,000  800,000(1)    600,000 Current liability 60,000  180,000        24,000 Total equities 1525,000  765,000        2290,000 Shares in Ghia Ltd  200,000     800,000(1)  -  Total non-current assets 1360,000  750,000        2110,000 Minority interest is calculated as follows: MI share of operating profit after tax$Operating profit after tax345,000LessUnrealised profit in closing inventory after tax 000AddProfit in opening inventory after tax now realised 000LessDebenture interest received 000345,000Minority interest 345,000MI share of retained profits 1 July 20X2Retained profit 1 July 20X2325,000LessUnrealised profit in opening inventory after tax 000325,000Minority interest 000MI share of dividend paid(0.30 x 200,000)60,000MI share of proposed dividend130,000MI share of retained profits 30 June 20X3(13,340+3,240-1,700-4,100)$10,780MI share of share captial(20% x 200,000)40,000MI share of general reserve(20% x 300,000)60,000Consolidated balance sheet for the year ended 31 December 20X8Sales4640Cost of sales2210Gross profit2430Dividend revenue  2522682Expenses 2057Operating profit before tax625Income tax expense   280Operating profit after tax345Ford Ltd$0 Retained earnings at 1.1.X8240Profit for the year345Interim dividend-100Final dividend declared  (160)Retained earnings at 31.12.X8    325Consolidated balance sheet for the year ended 31 December 20X8Balance sheetsFord Ltd$0 AssetsCurrent assetsOther current assets Total current assets    385Non-current assetsProperty, plant and equipmentInvestmentsTotal non-current assets  1360Total assets1745LiabilitiesCurrent liabilitiesTrade and other payablesProvisions    160Total current liabilities    220Total liabilities    220Net assets  1525Shareholder’s equityShare capital1200Capital profits reserve        -Retained earnings    325Total equity  1525

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