On I January 2015, Hill Ltd acquired 80% of the voting shares of River Ltd and 20% of the voting sharesof Valley Ltd. On the same day, River Ltd acquired 70% of the voting shares in Valley Ltd.Profit and dividends paid/declared by group entities for the financial year ended 31 December 2016 wereas follows:DetailsHill LtdRiver LtdValley LtdProfit after taxInterim dividend paidFinal dividend declared2,000,000300,000900,0001,500,000200,000300,000800,000660,000200,000Additional Information:(a) During the financial year ended 31 December 2015, Hill Ltd sold goods to River Ltd for$440,000. These goods cost Hill Ltd $290,000. At 31 December 2015, 10% of these goodsremained in River Ltd's inventory. The closing inventory at 31 December 2015 was sold toexternal parties during the year ended 31 December 2016(b) During the financial year ended 31 December 2015, River Ltd sold goods to Valley Ltd for$135,000. These goods cost River Ltd $75,000. At 31 December 2015, 55% of these goodsremained in Valley Ltd's inventory. The closing inventory at 31 December 2015 was sold toexternal parties during the year ended 31 December 2016(c) During the financial year ended 31 December 2016, Valley Ltd sold goods to River Ltd for$110,000. These goods cost Valley Ltd $60,000. At 31 December 2016, 60% of these goodsremained in River Ltd's inventory.(d) All entities in the group use the perpetual inventory system.(e) Dividend revenue is recognised by entities when the dividend has been declared.(f) The corporate tax rate is 30%.Required:Based on the information provided, prepare a NCI Memorandum Account to calculate the total non-controlling interest in consolidated profit after tax for the year ended 31 December 2016. Show allworkings.Journal entries are not required.• Show all workings. Where workings are not shown, part marks will not be awarded.

Answered: Image /qna-images/answer/64a6d465-9cc3-4e8b-a865-b387d860afa4.jpg

Required: Based on the information provided, prepare a NCI Memorandum Account to calculate the total non- controlling interest in consolidated profit after tax for the year ended 31 December 2016. Show all workings. Journal entries are not required. Show all workings. Where workings are not shown, part marks will not be awarded.

Required: Based on the information provided, prepare a NCI Memorandum Account to calculate the total non- controlling interest in consolidated profit after tax for the year ended 31 December 2016. Show all workings. Journal entries are not required. Show all workings. Where workings are not shown, part marks will not be awarded.

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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Subject :accounting