Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draftstatements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 areshown below:Keswick CoDerwent Co$0008,400(4,600)3,800(1,500)(700)$0003,200(1,700)1,500RevenueCost of salesGross profitDistribution costs(510)Administrative costs(450)Profit before tax1,600(600)540Тах(140)Profit of the year1,000400During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At31 May 20X6, 30% of these goods remained in Derwent Co's inventory.Task 1Use the information above to complete the following financial statement:RevenueLess: Cost of salesGross profitLess:Distribution costsAdministrative costsProfit before taxLess: TaxProfit for the yearAttributable to:Equity owners of Keswick CoNon-controlling interest

We have the following information: During the year Keswick Co sold goods costing $1,000,000 to…

Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draft statements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 are shown below: Keswick Co $000 8,400 (4,600) 3,800 (1,500) (700) 1,600 (600) 1,000 Derwent Co $'000 3,200 (1,700) 1,500 (510) (450) 540 Revenue Cost of sales Gross profit Distribution costs Administrative costs Profit before tax Тах (140) 400 Profit of the year During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At 31 May 20X6, 30% of these goods remained in Derwent Co's inventory. Task 1 Use the information above to complete the following financial statement: s00 Revenue Less: Cost of sales Gross profit Less: Distribution costs Administrative costs Profit before tax Less: Tax Profit for the year Attributable to: Equity owners of Keswick Co Non-controlling interest

Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draft statements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 are shown below: Keswick Co $000 8,400 (4,600) 3,800 (1,500) (700) 1,600 (600) 1,000 Derwent Co $'000 3,200 (1,700) 1,500 (510) (450) 540 Revenue Cost of sales Gross profit Distribution costs Administrative costs Profit before tax Тах (140) 400 Profit of the year During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At 31 May 20X6, 30% of these goods remained in Derwent Co's inventory. Task 1 Use the information above to complete the following financial statement: s00 Revenue Less: Cost of sales Gross profit Less: Distribution costs Administrative costs Profit before tax Less: Tax Profit for the year Attributable to: Equity owners of Keswick Co Non-controlling interest

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draft
statements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 are
shown below:
Keswick Co
Derwent Co
$000
8,400
(4,600)
3,800
(1,500)
(700)
$000
3,200
(1,700)
1,500
Revenue
Cost of sales
Gross profit
Distribution costs
(510)
Administrative costs
(450)
Profit before tax
1,600
(600)
540
Тах
(140)
Profit of the year
1,000
400
During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At
31 May 20X6, 30% of these goods remained in Derwent Co's inventory.
Task 1
Use the information above to complete the following financial statement:
Revenue
Less: Cost of sales
Gross profit
Less:
Distribution costs
Administrative costs
Profit before tax
Less: Tax
Profit for the year
Attributable to:
Equity owners of Keswick Co
Non-controlling interest

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