KK Ltd regularly sells goods to its wholly-owned subsidiary company Ash Ltd, which it has owned since Ash Ltd.'s incorporation. The statement of financial position of the two companies on 28th February 2020 is given below. Required: Prepare a consolidated account for the group that ended 28th February 2020. STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2020 KK Ltd (R) Assets Non-Current Assets 90,000 PPE 35,000 Investments in 55,000 shares in Ash Ltd at cost 55,000 Current Assets 55,000 Inventory 16,000 Trade receivable: Ash Ltd 2,000 Other 21,000 Bank 16,000 Total Assets 145,000 Equity and Liability Members' interest and reserves 116,000 Ash Ltd (R) 60,000 60,000 51,000 27,000 24,000 111,000 69,000

KK Ltd regularly sells goods to its wholly-owned subsidiary company Ash Ltd, which it has owned since Ash Ltd.'s incorporation. The statement of financial position of the two companies on 28th February 2020 is given below. Required: Prepare a consolidated account for the group that ended 28th February 2020. STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2020 KK Ltd (R) Assets Non-Current Assets 90,000 PPE 35,000 Investments in 55,000 shares in Ash Ltd at cost 55,000 Current Assets 55,000 Inventory 16,000 Trade receivable: Ash Ltd 2,000 Other 21,000 Bank 16,000 Total Assets 145,000 Equity and Liability Members' interest and reserves 116,000 Ash Ltd (R) 60,000 60,000 51,000 27,000 24,000 111,000 69,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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

KK Ltd regularly sells goods to its wholly-owned subsidiary company Ash Ltd, which it has
owned since Ash Ltd.'s incorporation. The statement of financial position of the two
companies on 28th February 2020 is given below.
Required: Prepare a consolidated account for the group that ended 28th February 2020.
STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2020
KK Ltd (R)
Assets
Non-Current Assets
90,000
PPE
35,000
Investments in 55,000 shares in Ash Ltd at cost
55,000
Current Assets
55,000
Inventory
16,000
Trade receivable:
Ash Ltd
2,000
Other
21,000
Bank
16,000
Total Assets
145,000
Equity and Liability
Members' interest and reserves
116,000
Ash Ltd
(R)
60,000
60,000
51,000
27,000
24,000
111,000
69,000

55,000 R1 ordinary shares
85,000 R1 ordinary shares
Retained earnings
Non-Current Liabilities
Current Liabilities
Bank overdraft
Trade payables:
Total Liabilities
Total Equity and Liabilities
KK Ltd
Other
85,000
31,000
29,000
29,000
145,000
55,000
14,000
8,000
2,000
32,000
42,000
111,000

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