Accounting -Assignment Help

You have an assignment to submit and an expert is just a call away, isn’t it wonderful? At Solvemyassignment.com you can have a qualified and experienced CPA working on your assignment and deliver the very best.

The assignments delivered by Solvemyassignment.com are plagiarism free, in conformity with the marking rubric and meets the Harvard/APA referencing standards. Our assignments would bring you appreciation from the professors and also in turn result in high grades.

Below is a sample assignment we would write for the given question.

The consolidation journals required in relation to all inter-entity transactions to consolidate T and U as at 30 June 2008:

Inventory

The closing inventory of T Ltd at 30 June 2008 included goods that cost T $2,100 T purchased this inventory from U Ltd at cost plus 25.00% Total purchases by T from U during the year ended 30 June 2008 were $9,000

The Consolidation Journal Adjustment entry to be recorded in this case would be as follows:

 
Particulars Amount($)
DR Sales Revenue 9000
CR Cost of Goods Sold 8580
CR Inventory 420

 

Workings:

Cost of goods sold by U Ltd. To T Ltd. = $9000/125% (U sold to T at cost + 25%)

= $7200

Out of the above purchases of $9000 made by T Ltd., goods amounting to $2100 are in closing inventory. So, the cost of goods sold made by T Ltd. Is $(9000-2100) = $ 6900.

So the total cost of goods sold by both companies is $(7200+6900)= $14100 out of which the cost of goods sold in relation to sale made by T Ltd. to outsider is $ 5520.

Therefore, the Cost of goods sold to be credited in Consolidation is = $(14100-5520) = $8580 and the remaining sales revenue of $(9000-8580) = $420 will be credited to Inventory.

(b) Non-current asset transfers

A motor vehicle was sold by U to T on 1 July 2007 The before-tax gain recorded by U on the sale was $4,800  

Details of the asset are as follows:

 
Original cost $29,000
Carrying amount at the date of transfer $19,000
Remaining useful life (in years) at the date of transfer: 4
All plant & equipment is depreciated on a straight line basis at $25%
 
Particulars Amount($)
CR Motor Vehicle 4800
DR Other Income 4800

The gain on sale of the vehicle by U Ltd. has been eliminated in the consolidation.

(c) Inter-group dividends

All dividends paid during the 2008 year were paid from post-acquisition profits:  
Particulars Amount($)
DR Dividend Payable 35000
CR Dividend Receivables 35000
DR Dividend Revenue 73000
CR Final Dividend Declared 35000
CR Interim Dividend paid 38000

(d) Other inter-group transactions

On 30 June 2008, T made a loan to U. The loan is an interest only loan with an interest rate of 6.00%. Full repayment of the principal is due on 30 June 2010.  
Particulars Amount($)
DR Loan from T Ltd. 53000
CR Loan to U Ltd. 53000

Since Loan is given on the last day of the accounts no interest is payable or receivable.



We are just a click away. Solvemyassignment.com is just the professional you need to provide you the best solution when you need Accounting Assignment Help, Strategy Assignment Help, Statistics Assignment Help or even Economics Assignment Help.

Recent Posts

Professional assignment solutions with online assignment help

Quick and efficient online assignment help Australia