Illustrations of retained profits brought forward, Financial Accounting

Assignment Help:

Illustrations of retained profits brought forward

H Ltd acquired 75% of the ordinary shares of S Ltd since S Ltd was incorporated. The Summarized income statement for the two companies for the year ending 31 December

20X2 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

H Ltd

S Ltd

 

 

 

 

£

£

Sales revenue

 

 

     75,000.00

            38,000.00

Cost of sales

 

 

 

    (30,000.00)

          (20,000.00)

Gross profit

 

 

 

     45,000.00

            18,000.00

Operating expenses

 

 

    (14,000.00)

            (8,000.00)

Profit before  tax

 

 

      31,000.00

            10,000.00

Taxation

 

 

 

    (10,000.00)

            (2,000.00)

Profit after tax

 

 

      21,000.00

              8,000.00

Retained profit b/f

 

 

     87,000.00

            17,000.00

Retained profit c/f

 

 

    108,000.00

            25,000.00

 

 

 

 

 

 

Required:

 

 

 

 

 

Prepare the consolidated income statement for the year ended 31 December 20X2.

 

H Ltd. And Its Subsidiary

Consolidated Income Statement for year ended 31/12/2002

 

£ ‘000’

£ ‘000’

Revenue(75+38)

 

113

Cost of sales(30+20)

 

(50)

Gross profit

 

63

Operating expenses(14+8)

 

22

Profit before tax

 

41

Income tax expense(10+2)

 

(12)

Profit after tax

 

29

Profit attributable to minority interest

 

(2)

Profit attributable to holding company

 

27

Retained profits b/f

 

  99.75

Retained profit b/f

 

126.75


Related Discussions:- Illustrations of retained profits brought forward

Secret trusts-trusts laws and accounts, SECRET TRUSTS The initial basis o...

SECRET TRUSTS The initial basis of the doctrine of secret trusts was the refusal of equity to permit a statute to be used as an engine of fraud (e.g. Bannister v Bannister).  Cer

Hat is the after-tax cash flow from the salvage value, 48 Morgado Inc. has ...

48 Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment $130,000 Annual cash receipts $78,000 Life of th

Absorbed cost, These are the indirect costs that are related with manufactu...

These are the indirect costs that are related with manufacturing. Absorbed costs involve expenses like insurance, or property taxes for the building in which the production process

Earnings per share, Rockland Corporation earned net income of $346,500 in 2...

Rockland Corporation earned net income of $346,500 in 2012 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $924,000 of 10% bon

Adjusting entries clapton guitar company, Adjusting Entries Clapton Guitar ...

Adjusting Entries Clapton Guitar Company entered into the following transactions during 2013. [The transactions were properly recorded in permanent (balance sheet) accounts unless

Which product should harper tell its sales personnel, Harper Co. provided t...

Harper Co. provided the following information concerning two products: contribution margin per unit- product 12 $46 Contribution margin per unit-product 43 $30. Machine hours requi

Prepare income statement for current year, following are the amounts of the...

following are the amounts of the assets and liabilities of St. Kitts Travel Agency at December 31, 2010, the end of the current year, and its revenue and expenses for the year. The

Determine the growth rate of the nominal money supply, The income elasticit...

The income elasticity of money demand is 2/3. Real income is expected to grow by 4.5% over the next year, and the real interest rate is expected to remain constant over the next ye

What are the various strategies about bond, What are the various strategies...

What are the various strategies behind selected low (e.g., zero) or high coupon rates when issuing bonds?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd