Provide workings of worksheet consolidation entries

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Reference no: EM131041142

Question - Adam Ltd acquires all the share capital of Luke Ltd for 5290.000. The equities of Luke Ltd at the date of acquisition were as follows:

Share Capital $150,000

General Reserve $30,000

Retained Earnings $60,000

Goodwill $10,000

All assets and liabilities of Luke Ltd were of fair value at DOA except the land had the fair value of $160,000. The carrying amount of the land is recorded at $140,000.

Provide the workings of necessary worksheet consolidation entries (no marks given) and complete the worksheet below.

	Aden Ltd	It Ltd	Adj. Dr.	Adj. Cr.	Group
Income	$50,000	$34,000
Other income	$14,000	312.000
Expenses	$21,000	315.000
Income tax expense	$8,000	58.000
Profit for the period	$35.000	525.000
Retained earnings (117115)	$90.000	580.000
Transfer from general reserve	$0	$0
Retained earnmas (304¹151	$125,000	$105,000
Share capital	$558,000	$150,000
General reserve	$92,000	$30,000
FairValue Adjustment
Provisions	$30,000	$30,000
Payables	315,000	$25,000
Deferred tax liability
Loans	$50,000	$110,000
Total equities and &babes	$970,000	$450,000
Plant	$600,000	$820,000
Accumulated depreciation	$295,000	-$550,000
Factures	$300,000	$120.000
Accumulated depredation	$180,000	$80,000
Land	$200,000	$140,000
Brands	$50,000	$30,000
Shares in Luke Ltd	$230,000
Inventory	$45,000	$40,000
Cash	$5,000	$7,000
Receivables	$15,000	$13,000
Deferred tax asset
Goodwill		$10,000
Total assest	$970,000	$450,000

Reference no: EM131041142

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