Illustrations of retained profits brought forward, Financial Accounting

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

Posted Date: 12/12/2012 4:59:00 AM | Location : United States







Related Discussions:- Illustrations of retained profits brought forward, Assignment Help, Ask Question on Illustrations of retained profits brought forward, Get Answer, Expert's Help, Illustrations of retained profits brought forward Discussions

Write discussion on Illustrations of retained profits brought forward
Your posts are moderated
Related Questions
Completed executions A judgement creditor cannot retain the "benefit" of an execution or attachment, unless he has completed it- Before the date of the receiving order,

Banana Computer has a perpetual, convertible 7% annual coupon bond outstanding. The bond has a face value of $1,000 and has a conversion price of $40. The required return on an oth

State the term - Regulations Financial accounting reports, for numerous businesses, are subject to accounting regulations which try to make sure they are produced with standard

1. Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,218,246. have a

Assets   1) The classification of investments in the Balance Sheet will be under a few broad headings with schedules listing the individual assets. Where the Trustees Act has been

On November 1, 2011, Leetch Ltd. borrows $400,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note needs equal total payments every year on Oc

1. Assume that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to (i) an increase in money supply (ii

Accounts of trustees The trustee must keep proper books of account, which may be inspected by the creditors at any time. The cash book must be audited by the committee of insp

Tampa Foundry began operations during the present year, manufacturing several products for industrial use. One such product is light-gauge aluminum, which the company sells for $36

Do you help with assignments?