Post-18548

In the Books of Rudolf Ltd.
Acquisition of Comet Ltd-01-07-2012
Share capital at acquisition date       600,000.00
Retained earnings at acquisition date       125,000.00
Fair Value of Copyright          90,000.00
Fair value of net assets       815,000.00
Fair value of consideration       810,000.00
Goodwill/Gain on bargain purchase          (5,000.00)
 Particulars  Debit  Credit
 Goodwill          (5,000.00)
 To Retained Earnings                         (5,000.00)
Investment  A/c       810,000.00
Comet Ltd                       810,000.00
Comet Ltd       810,000.00
Cash at Bank                       810,000.00
(Rudolf Ltd purchased 100% issued capital of Comet Limited in cash)
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)
Comet Ltd       170,800.00
Sales of Inventory                       170,800.00
Profit on Sales          48,800.00
Inventory                         48,800.00
Purchase of Inventory       154,000.00
Comet Ltd                       154,000.00
Profit on Sales          24,000.00
Inventory                         24,000.00
Dividend          80,000.00
Cash at Bank                         80,000.00
TOTAL    2,158,600.00                   2,158,600.00
Investment  A/c       260,000.00
Blitzen  Ltd                       260,000.00
Blitzen  Ltd       260,000.00
Cash at Bank                       260,000.00
Bitzen Ltd          26,600.00
Sale of Inventory                         26,600.00
Profit on Sales            7,600.00
Inventory                           7,600.00
Comet Ltd          39,500.00
Sale of Inventory                         39,500.00
Profit on Sales          11,285.71
Inventory                         11,285.71
Purchase of Inventory          84,000.00
Blitzen Ltd                         84,000.00
Profit on Sales          10,000.00
Inventory                         10,000.00
TOTAL       698,985.71                       698,985.71
 In the books of Comet Ltd.
 Rudolf Ltd       810,000.00
 Share Capital                       600,000.00
 Share Premium Ac                       210,000.00
Cash at Bank       810,000.00
 Rudolf Ltd                       810,000.00
 Plant an Machinary          52,800.00
 Rudolf Limited                         52,800.00
 Depreciation          15,000.00
 Plant an Machinary                         15,000.00
 Purchase of Inventory       170,800.00
 Rudolf Limited                       170,800.00
Rudolf Ltd.       154,000.00
Sale of Inventory                       154,000.00
Profit on Sales          44,000.00
Inventory                         44,000.00
Profit on Sales          38,000.00
Inventory                         38,000.00
 Purchase of Inventory          39,500.00
 Rudolf Limited                         39,500.00
TOTAL    2,134,100.00                   2,134,100.00
 In the books of Blitzen Ltd.
Acquisition of 80% of 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          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
 Goodwill          17,000.00
 To Retained Earnings                         17,000.00
Rudolf Ltd       260,000.00
Other Shareholders          30,000.00
Share Premium Account                       140,000.00
Share Capital                       150,000.00
Cash at Bank       260,000.00
To Rudolf                       260,000.00
Revaluation of Machinary          40,000.00
Revaluation Reserve                         40,000.00
Purchase of Inventory          26,600.00
Rudolf Ltd                         26,600.00
Rudolf Ltd          84,000.00
Sale of Inventory                         84,000.00
Profit on Sales          24,000.00
Inventory                         24,000.00
Profit on Sales          30,000.00
Inventory                         30,000.00
      771,600.00                       771,600.00
Balance Sheet of Comet Ltd as at 1st Jul-2012
Liabilties  Amount Assets  Amount
Share Capital       600,000.00 Intangible-Copyright      90,000.00
Share Premium Capital       210,000.00 Goodwill      (5,000.00)
Retained Earning       120,000.00 Net of Working Capital   845,000.00
TOTAL       930,000.00 TOTAL   930,000.00
Balance Sheet of Blitzen Ltd as at 1st Jul-2013
Liabilties  Amount Assets  Amount
Share Capital       150,000.00 Plant & Machinary   160,000.00
Share Premium Account       140,000.00 Less: Acc Depreciation      53,333.33
Retained Earning          65,000.00 Machinary Revaluation      40,000.00
Revaluation Reserve          40,000.00 Net of Working Cap   141,666.67
TOTAL       395,000.00 TOTAL   395,000.00
At 30th Jun-2014  Rudolf Ltd Comet Ltd Blitzen Ltd  Eliminations/Adjustment  Consolidated Parent Company
Income statements  Dr.  Cr.
Sales revenue 1,521,900 840,320 576,200     66,100.00    2,872,320.00 1,521,900
Cost of goods sold 996,500 375,200 254,800   123,500.00     57,400.00    1,560,400.00 996,500
Gross profit 525,400 465,120 321,400    1,311,920.00 525,400
Other income
Management fee revenue 45,000  –     45,000.00                          – 45,000
Dividend revenue 127,000  –        127,000.00 127,000
Expenses 0
Depreciation expense -163,000 -36,000 -79,000      (278,000.00) -163,000
Management fee expense  – -27,500 -17,500     45,000.00                          –  –
Other expenses -424,500 -316,000 -182,500     15,000.00      (938,000.00) -424,500
Profit before tax 109,900 85,620 42,400        222,920.00 109,900
Income tax expense -32,900 -25,600 -12,700        (71,200.00) -32,900
Profit for the year after tax 77,000 60,020 29,700        151,720.00 77,000
Retained earnings at start of year 762,000 180,000 65,000     94,120.00    1,101,120.00 762,000
Dividend paid/declared -250,000 -55,000 -22,000     72,600.00      (254,400.00) -250,000
Retained earnings at year end 589,000 185,020 72,700                846,720.00 589,000
BALANCE SHEETS
Equity
Share capital 950,000 600,000 150,000   720,000.00        980,000.00 950,000
Retained earnings 589,000 185,020 72,700        846,720.00 589,000
Revaluation Surplus     40,000.00          40,000.00 0
Current Liabilities 0
Accounts payable 193,700 46,000 84,000        323,700.00 193,700
Income tax payable 24,000 21,000 12,400          57,400.00 24,000
Dividends payable 190,000 30,000 10,000     38,000.00        192,000.00 190,000
Non-Current Liabilities 0
Loans 977,000 307,000 216,850    1,500,850.00 977,000
Deferred tax liability 12,600           –          12,600.00 12,600
2,936,300 1,189,020 545,950    3,953,270.00 2,936,300
Current Assets
Cash 138,410 253,520 68,900        460,830.00 138,410
Accounts receivable 145,800 65,200 45,350        256,350.00 145,800
Allowance for doubtful debts -8,650 -2,300 -4,200        (15,150.00) -8,650
Dividends receivable 85,000  –          85,000.00 85,000
Inventory 108,300 96,800 61,500   474,900.00   574,700.00        366,400.00 108,300
Non-Current Assets                          –
Land and buildings 900,000 610,800 205,000    1,715,800.00 900,000
Plant – at cost 758,000 291,000 447,000     52,800.00    1,443,200.00 758,000
Accumulated depreciation – plant -260,560 -126,000 -277,600     15,000.00      (679,160.00) -260,560
Investment in Comet Ltd 810,000  –  –   600,000.00        210,000.00 810,000
Investment in Blitzen Ltd 260,000               –   150,000.00        110,000.00 260,000
2,936,300 1,189,020 545,950    3,953,270.00 2,936,300
                         –
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