Summary FAC2602 Complete summary for exam prep

2. SOLUTION TO ASSIGNMENT 02/2018 – SEMESTER 1 PART A Dr R Cr R (a) Share capital 400 000 Retained earnings 800 000 Revaluation surplus (30 000 + 10 000) 40 000 Goodwill 8 000 Investment in Green Ltd 1 000 000 Non-controlling interests [(400 000 + 800 000 + 40 000) x (100 000 – 80 000)/100 000] 248 000 (b) Retained earnings – Save Ltd (800 000 x 25/125) 160 000 Cost of sales – Save Ltd Cost of sales – Save Ltd (750 000 x 25/125) Inventory – Green Ltd 150 000 160 000 150 000 (c) Revaluation surplus 8 000 Non-controlling interests (SFP) [(80 000 – 40 000) x 20%] 8 000 PART B SAVE LTD GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017 R Revenue (1 800 000 + 1 200 000 – 1 000 000) Cost of sales (900 000 + 500 000 – 1 000 000 + 150 000 – 160 000) 2 000 000 (390 000) Gross profit Other income [130 000 + 80 000 – (60 000 x 80%) – (150 000 – {200 000 – 100 000}) – (200 000 x 5%)] Other expenses [400 000 + 270 000 – (50 000 x 20% x 6/12)] Finance cost (140 000 + 80 000 – 10 000) 1 610 000 102 000 (665 000) (210 000) Profit before tax Income tax expense (137 200 + 120 400) 837 000 (257 600) PROFIT FOR THE YEAR 579 400 Other comprehensive income for the year - TOTAL COMPREHENSIVE INCOME FOR THE YEAR 579 400 Total comprehensive income attributable to: Owners of the parent (579 400 – 52 920) 526 480 Non-controlling interests 52 920 579 400