Post-1

                    – In the Books of Rudolf Ltd.
Date Acquisition of Comet Ltd-01-07-2012
1/7/2012 Share capital at acquisition date       600,000.00
Retained earnings at acquisition date       125,000.00
Fair Value of Copyright          90,000.00
Recognise Legal claim (50000@70%)          35,000.00
Fair value of net assets       850,000.00
Fair value of consideration       810,000.00
Goodwill/Gain on bargain purchase       (40,000.00)
1 1/7/2012 Share Capital       600,000.00
Retained Earnings(125000-40000)          85,000.00
Revaluation surplus       165,000.00
Investment in Comet       810,000.00
Goodwill          40,000.00
2 1/1/2013 Comet Ltd          52,800.00
Loss on sale of Plant          13,200.00
To Plant and Machinary          66,000.00
(Sales of Plant and Machinary to Comet Ltd at Loss)
3 Comet Ltd       170,800.00
Sales of Inventory       170,800.00
Profit on Sales          48,800.00
Inventory          48,800.00
Sale of Inventory to Comet by Rudolf at 40% +Cost
4 Purchase of Inventory       154,000.00
Comet Ltd       154,000.00
Purchase of Inventory from Comet at 40% +cost,  so Profit for Comet = 154000-110000= 44000
Profit on Sales by Comet 44000
To Rudolf 44000
5 30-06-2013 The Profit element in the Closing Inventory
Rudolf Ltd-from comet(53200-53200/1.4)          15,200.00
Comet Ltd from Rudolf Ltd(33600-33600/1.4)            9,600.00
6 Dividend by Rudolf          80,000.00
1/7/2013
Acquisition of 80% Blitzen Ltd-01-07-2013
Share capital at acquisition date       150,000.00
Retained earnings at acquisition date          65,000.00
Revaluation of Plant and Machinary(40000*70%)          28,000.00
 
Fair value of net assets       243,000.00
Fair value of consideration       260,000.00
Goodwill/Gain on bargain purchase          17,000.00
Share Capital       150,000.00
Retained Earnings(65000+17000)          82,000.00
Revaluation surplus          28,000.00
Investment in Blitzen       260,000.00
The Book value of Plant and Machinary(01-07-2011)       160,000.00
Estimated Life                    6.00
Depreciation pa          26,666.67
Accumulated Depreciation for 2 yrs          53,333.33
Book Value of Plant and Machinary       106,666.67
7 Blitzen          26,600.00
COGS          19,000.00
Interunit Profit            7,600.00
(Sale of Goods to Blitzen by Rudolf at markup of 40%)
8 Comet          39,500.00
COGS          28,214.29
Interunit Profit          11,285.71
(Sale of Goods to Comet by Rudolf at markup of 40%)
9 Rudolf          84,000.00
COGS          60,000.00
Interunit Profit          24,000.00
(Sale of Goods to Rudolf by Blitzen at markup of 40%)
10 30-06-2014 Closing Inventory
Rudolf(14000 from Blitzen)
Profit element in the books of Blitzen            4,000.00
Blitzen ( 42000 from Rudolf)
Profit element in the books of Rudolf          12,000.00
Impairment of Goodwill 30-06-2014 10%
At 30-06-2014-Consolidation worksheet
At 30th Jun-2014  Rudolf Ltd Comet Ltd Blitzen Ltd  Eliminations/Adjustment  Consolidated
Income statements  Dr.  Sno  Cr.
Sales revenue    1,521,900.00       840,320.00    576,200.00   390,900.00  (3,4,7,8)    2,547,520.00
Cost of goods sold       996,500.00       375,200.00    254,800.00      222,785.71    1,403,714.29
Gross profit       525,400.00       465,120.00    321,400.00    1,143,805.71
Other income
Management fee revenue          45,000.00   –     45,000.00                          –
Dividend revenue       127,000.00   –        127,000.00
Expenses
Depreciation expense     (163,000.00)       (36,000.00)    (79,000.00)      (278,000.00)
Management fee expense   –       (27,500.00)    (17,500.00)    (45,000.00)                          –
Other expenses     (424,500.00)     (316,000.00) ##########      (923,000.00)
Profit before tax       109,900.00          85,620.00      42,400.00          69,805.71
Income tax expense       (32,900.00)       (25,600.00)    (12,700.00)        (71,200.00)
Profit for the year after tax          77,000.00          60,020.00      29,700.00          (1,394.29)
Profit for the year after tax for NCI        5,940.00             5,940.00
Retained earnings at start of year       762,000.00       180,000.00      65,000.00    1,007,000.00
Dividend paid/declared     (250,000.00)       (55,000.00)    (22,000.00)    (72,600.00)      (254,400.00)
Retained earnings at year end       589,000.00       185,020.00      78,640.00                758,540.00
BALANCE SHEETS
Equity
Share capital       950,000.00       600,000.00    150,000.00    720,000.00        980,000.00
Retained earnings       589,000.00       185,020.00      72,700.00   243,180.00      72,600.00        676,140.00        72,600.00
Non Controlling Interest      82,400.00          82,400.00 1394381
Revaluation Surplus                          –
Current Liabilities
Accounts payable       193,700.00          46,000.00      84,000.00        323,700.00
Income tax payable          24,000.00          21,000.00      12,400.00          57,400.00
Dividends payable       190,000.00          30,000.00      10,000.00      38,000.00        192,000.00
Non-Current Liabilities
Loans       977,000.00       307,000.00    216,850.00    1,500,850.00
Deferred tax liability          12,600.00  –            –          12,600.00
   2,936,300.00    1,189,020.00    545,950.00    3,825,090.00
Current Assets
Cash       138,410.00       253,520.00      68,900.00        460,830.00
Accounts receivable       145,800.00          65,200.00      45,350.00        256,350.00
Allowance for doubtful debts          (8,650.00)          (2,300.00)      (4,200.00)        (15,150.00)
Dividends receivable          85,000.00   –          85,000.00
Inventory       108,300.00          96,800.00      61,500.00     16,000.00     10.00        250,600.00
Non-Current Assets                          –
Land and buildings       900,000.00       610,800.00    205,000.00    1,715,800.00
Plant – at cost       758,000.00       291,000.00    447,000.00    1,496,000.00
Accumulated depreciation – plant     (260,560.00)     (126,000.00) ##########                      –      (664,160.00)
Investment in Comet Ltd       810,000.00   –   –   628,454.02        181,545.98
Investment in Blitzen Ltd       260,000.00                –   201,725.98          58,274.02
   2,936,300.00    1,189,020.00    545,950.00    3,825,090.00
                         –
PART C
Consolidated Statement of Comprehensie Income of Rudolf Ltd and its subsidiaries
At 30th Jun-2014  The Group  Rudolf Ltd
Income statements
Sales revenue    2,547,520.00    1,521,900.00
Cost of goods sold    1,403,714.29       996,500.00
Gross profit    1,143,805.71       525,400.00
Other income                         –                         –
Management fee revenue                         –          45,000.00
Dividend revenue       127,000.00       127,000.00
Expenses
Depreciation expense     (278,000.00)     (163,000.00)
Management fee expense                         –   –
Other expenses     (923,000.00)     (424,500.00)
Profit before tax          69,805.71       109,900.00
Income tax expense       (71,200.00)       (32,900.00)
Profit for the year after tax          (1,394.29)          77,000.00
Retained earnings at start of year    1,007,000.00       762,000.00
Dividend paid/declared     (254,400.00)     (250,000.00)
Retained earnings at year end       758,540.00       589,000.00
Profit after tax attributable to
Owners of the parent          (7,334.29)          77,000.00
Non controlling Interest            5,940.00
Consolidated Statement of financial Position of Rudolf Ltd and its subsidiaries as at 31th June 2014
Equity  The Group  Rudolf Ltd
Share capital       980,000.00       950,000.00
Retained earnings       676,140.00       589,000.00
Non Controlling Interest          82,400.00                         –
Revaluation Surplus                         –                         –
Current Liabilities
Accounts payable       323,700.00       193,700.00
Income tax payable          57,400.00          24,000.00
Dividends payable       192,000.00       190,000.00
Non-Current Liabilities
Loans    1,500,850.00       977,000.00
Deferred tax liability          12,600.00          12,600.00
Total Liabilties    3,825,090.00    2,936,300.00
Current Assets
Cash       460,830.00       138,410.00
Accounts receivable       256,350.00       145,800.00
Allowance for doubtful debts       (15,150.00)          (8,650.00)
Dividends receivable          85,000.00          85,000.00
Inventory       250,600.00       108,300.00
Non-Current Assets
Land and buildings    1,715,800.00       900,000.00
Plant – at cost    1,496,000.00       758,000.00
Accumulated depreciation – plant     (664,160.00)     (260,560.00)
Investment in Comet Ltd       181,545.98       810,000.00
Investment in Blitzen Ltd          58,274.02       260,000.00
TOTAL Assets    3,825,090.00    2,936,300.00
                        –
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