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
THE TRUSTEE IN BANKRUPTCY 1) Appointment of trustee The trustee is appointed: By the creditors by ordinary resolution, or By the committee of inspection, if so

Q. What are the financial statements? Significant Accounts - An account is significant if there is more than a remote likelihood that account could include misstatements which

Presented below are four independent situations which you as a Manager Trainee employed with Your Company have been asked to evaluate. Evaluate each situation based on what each re

Q. Show the Management Report? Management's Report - Management is essential to include in its annual report its assessment of the effectiveness of the company's internal contr

are the notes to the financial statements part of the financial reporting

Asset Acquisition An alternate way of conducting a buyout by purchasing few assets an industry may have inspite of purchasing that organizations stock.

PROPERTY IN BANKRUPT'S REPUTED OWNERSHIP The trustee may claim property owned by third parties which is in the bankrupt's possession at the commencement of the bankruptcy if:


RECEIVING ORDER It includes five main important points as follows: Effect of receiving order: The consequences of the making of the receiving order are:The debtor retain

The Statement of Affairs The statement of affairs sets out: (a) The various assets of the debtor, at the values they are expected to realise; (b) The creditors, classified acc