Willow Ltd acquired 100% of Tree Ltd on 1 July 2020. At acquisition date, Tree Ltd had the following equity items: Retained earnings   $52,000 Share capital    70,000 General Reserve 25,000 In the year following the acquisition, Tree Ltd paid a bonus share dividend of $22,000 out of pre-acquisition retained earnings. The following consolidation adjustment is needed in the consolidation worksheet for 30 June 2021:       a. DR Shares in subsidiary $22,000      CR Share capital $22,000     b. DR Retained earnings $22,000     CR Share capital $22,000     c. DR Share capital $22,000      CR Bonus dividend paid $22,000     d. DR Bonus dividend paid $22,000      CR Share capital $22,000

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is