Query: On 1 July 2019, Diana Ltd received 100% of the issued shares of Charles Ltd for $320,000. At the date of acquisition, the shareholders’ equity of Charles Ltd consisted of: Share capital $200,000 General reserve $50,000 Retained earnings $30,000 Total $280,000 At 30 June 2023, the accounts of the two companies are presented below. Earnings Assertion Diana Ltd Charles Ltd Sales $360,000 $195,000 Label of goods equipped ($230,000) ($120,000) Depraved profit $130,000 $75,000 Dividends revenue $14,000 – Hobby revenue $3,000 $5,000 Total revenue $147,000 $80,000 Less Charges Depreciation $11,000 $7,000 Monetary charges $9,000 $9,000 Promoting charges $8,000 $10,000 Profit before tax $119,000 $54,000 Tax expense $forty eight,000 $20,000 Profit after tax $71,000 $34,000 Retained earnings 1 July 2022 $60,000 $10,000 Total retained earnings $131,000 $44,000 Intervening time dividend paid $10,000 $6,000 Final dividend proposed $30,000 $10,000 Retained earnings 30 June 2023 $91,000 $28,000 Write My Project Rent a Official Essay & Project Writer for finishing your Tutorial Assessments Native Singapore Writers Team 100% Plagiarism-Free Essay Best Delight Price Free Revision On-Time Supply Assertion of Monetary Situation Diana Ltd Charles Ltd Shareholders’ equity Retained earnings $91,000 $28,000 Share capital $350,000 $200,000 General reserve $30,000 $50,000 Liabilities Accounts payable $forty five,000 $5,000 Dividend payable $30,000 $10,000 Accumulated curiosity – Diana Ltd – $1,000 Loan – Diana Ltd – $40,000 Varied liabilities $40,000 $10,000 Total liabilities and equity $586,000 $344,000 Assets Cash at bank $2,000 $1,000 Deposits $65,000 – Stock $40,000 $30,000 Hobby receivable $1,000 – Loan – Charles Ltd $40,000 – Investment in Charles Ltd $320,000 – Plant and instruments $110,000 $180,000 Accumulated depreciation ($forty five,000) ($40,000) Land and buildings $120,000 $102,000 Accumulated depreciation ($5,000) ($14,000) Varied sources $3,000 $20,000 Total sources $586,000 $344,000 Purchase Custom Acknowledge of This Evaluation & Develop Your Grades Salvage A Free Quote Extra data: The identifiable procure sources of Charles Ltd were recorded at magnificent value on the date of acquisition. In making utilize of the impairment take a look at for goodwill in the latest year, the directors have definite that a write-down of $10,000 is required for consolidation capabilities. The cumulative goodwill impairment write-downs for prior years amounted to $15,000. An merchandise of plant and instruments owned by Charles (cost $30,000 and accumulated depreciation of $15,000) was equipped to Diana Ltd for $13,000 on 1 July 2020. Charles depreciated the asset at 10% per annum straight-line on authentic cost (assuming a 10-year financial existence). Diana, assuming a additional financial existence for the plant and instruments of five years from its date of acquisition, has applied a depreciation price of 20% straight-line from the date of switch of the asset. The outlet inventory of Charles Ltd involves unrealised profit of $2,000 on inventory transferred from Diana Ltd during the prior monetary year. All of this inventory was equipped by Charles Ltd to events exterior to the neighborhood during the year ended 30 June 2023. Correct through the latest monetary year, Charles Ltd purchased inventory from Diana Ltd for $30,000. The inventory had previously cost Diana Ltd $24,000. One-third of this inventory was equipped to outsiders by Charles during the year. Charles Ltd borrowed $40,000 from Diana Ltd during the monetary year. Charles paid $2,000 curiosity on this loan during the year. Moreover to, a additional $1,000 in curiosity has been recognised as an accumulated expense in Charles Ltd’s accounts and as curiosity receivable in Diana Ltd’s accounts. Hobby expense is included in Charles Ltd’s accounts below the monetary charges heading. On 15 July 2022, Charles Ltd paid a final dividend of $8,000 to Diana Ltd from earnings for the prior monetary year. Charles furthermore paid an intervening time dividend of $6,000 to Diana Ltd on 1 February 2023. Moreover to, Charles Ltd has equipped for a final dividend amounting to $10,000. Diana Ltd has no longer recognised this dividend as a receivable before receipt. The tax price is 30%. Required Put together an acquisition evaluation. Put together the consolidation journal entries obligatory to prepare consolidated accounts for the year ending 30 June 2023 for the neighborhood comprising Diana Ltd and Charles Ltd. Put together the consolidation worksheet for the preparation of the consolidated monetary statements for the interval ended 30 June 2023. Why is it necessary to title intragroup transactions as most up-to-date or earlier interval transactions? In what cases is a tax-enact adjustment required when making an adjustment for an intragroup transaction? Present two examples of intragroup transactions that can require a tax-enact adjustment and one instance of an intragroup transaction that wouldn’t require a tax-enact adjustment. 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