Carminho Ltd Group Consolidation Worksheet at 30 June 20X9

Financial statements
Carminho Ltd
$000
Sales revenue 6,400
Dividend revenue 330
Expenses (5,050)
Profit for the year 1,680
Retained earnings 1 July 20X8 2,290
Dividend paid -
Dividend declared (740)
Shareholders' equity
Retained earnings 30 June 20X9 3,230
Issued capital 8,920
Total equity 12,150
Liabilities
Borrowings 9,550
Dividend payable 740
Total liabilities and equity 22,440

Assets
Cash 940
Trade receivable 1,560
Dividends receivable 180
Property, plant and equipment (net) 18,910
Investment in Fado Ltd 850
Total assets 22,440
Financial statements
Fado Ltd
$000
2,840
-
(2,130)
710
4,030
(150)
(180)

4,410
850
5,260

3,670
180
9,110

220
730
-
8,160
-
9,110
Additional information

(a) On 1 January 20X0, Carminho Ltd registered Fado Ltd as a company, and subscribed for all of Fado L
capital.
(b) On 30 November 20X8, Fado paid an interim dividend of $150,000 and has declared a final dividend
year ended 30 June 20X9.
(c) Carminho Ltd doe not pay interim dividends to its own shareholders but has declared a final dividend
the year ended 30 June 20X9.

Acquisition analysis:

Cost of acquisition of investment in Fado Ltd

Fair value of purchase consideration for 100% of Fado Ltds equity
Less fair value of identifiable net assets of Fado Ltd
Recorded value of equity (equals carrying amount of identifiable net assets)
Issued capital
Add/subtract fair value adjustments to identifiable net assets
Fair value of identifiable net assets of Fado Ltd acquired
Goodwill: cost of acquisition > fair value of identifiable net assets
mpany, and subscribed for all of Fado Ltd's initial issued

,000 and has declared a final dividend of $180,000 for the

lders but has declared a final dividend of $740,000 for

$000

850

e net assets)
850
-
850
-
General journal entries recorded by Fado Ltd relating to dividends

30 November 20X8 (a)

Dr
Cr

30 June 20X9 (b)

Dr
Cr

General journal entries recorded by Carminho Ltd relating to dividends

30 November 20X8 (a)

Dr
Cr

30 June 20X9 (b)

Dr
Cr

30 June 20X9 (c)

Dr
Cr
orded by Fado Ltd relating to dividends

Record interim dividend declared and paid by Fado Ltd to Carminho Ltd
Dividend paid
Cash at bank

Record final dividend declared by Fado Ltd to Carminho Ltd

Dividend declared
Dividend payable

orded by Carminho Ltd relating to dividends

Record interim dividend received by Carminho Ltd from Fado Ltd

Cash at bank
Dividend revenue

Record final dividend receivable by Carminho Ltd from Fado Ltd

Dividends receivable
Dividend revenue

Record final dividend declared by Carminho Ltd

Dividend declared
Dividend payable
 Dr. Cr.
$000 $000

150
150

180
180

Dr. Cr.
$000 $000

150
150

180
180

740
740
Carminho Ltd Group Consolidation Worksheet at 30 June 20X9
Financial statements
Carminho Ltd
$000
Sales revenue 6,400
Dividend revenue 330

Expenses (5,050)
Profit for the year 1,680
Retained earnings 1 July 20X8 2,290
Dividend paid -
Dividend declared (740)
Shareholders' equity
Retained earnings 30 June 20X9 3,230
Issued capital 8,920
Total equity 12,150
Liabilities
Borrowings 9,550
Dividend payable 740
Total liabilities and equity 22,440

Assets
Cash 940
Trade receivable 1,560
Dividends receivable 180
Property, plant and equipment (net) 18,910
Investment in Fado Ltd 850
Total assets 22,440
Financial statements Consolidation adjustments Group
Fado Ltd Debit Ref Credit Consolidated
$000 $000 $000 $000
2,840 9,240
- 150 b -
180 c
(2,130) (7,180)
710 2,060
4,030 6,320
(150) b 150 -
(180) c 180 (740)

4,410 7,640
850 850 a 8,920
5,260 16,560

3,670 13,220
180 180 d 740
9,110 30,520

220 1,160
730 2,290
- d 180 -
8,160 27,070
- a 850 -
9,110 1,360 1,360 30,520
Consolidation worksheet journal entries for consolidation at 30 June 20X9

(a)
Elimination of Carminho Ltd's investment in subsidiary asset against the pre-acquisition equity of Fad
contributed by Carminho Ltd on 1 January 20X0.
Dr Issued capital
Cr Investment in Fado Ltd

On 1 January 20X0, Carminho Ltd registered Fado Ltd as a company, and subscribed for all of Fado L
issued capital by contributing capital of $850,000. Therefore Carminho Ltds investment in Fado Ltd is
$850,000, and Fado Ltds initial (pre-acquisition) equity is also $850,000.

(b) Elimination of intragroup interim dividend paid by Fado Ltd to Carminho Ltd
Dr Dividend revenue
Cr Dividend paid

(c) Elimination of intragroup final dividend declared by Fado Ltd to Carminho Ltd
Dr Dividend revenue
Cr Dividend declared

(d)
Elimination of intragroup final dividend payabale by Fado Ltd, and receivable by Carminho Ltd
Dr Dividend payable
Cr Dividend receivable
 Dr. Cr.
$000 $000

e-acquisition equity of Fado Ltd

850
850

ubscribed for all of Fado Ltds initial

s investment in Fado Ltd is

150
150

180
180

able by Carminho Ltd

180
180