, 1. a) Journal Entries for Non-Controlling Interest in
Intragroup Dividend (60% Interest)
The dividend declared by MoveMzansi Ltd (R730,000) must be allocated between the parent (Jump
Ltd) and the Non-Controlling Interest (NCI).
Jump Ltd's Share: R730,000 x 60%
438,000
NCI's Share: R730,000 x 40%
292,000
Journal Entry
Dr R Cr R
Dividends Receivable (Jump Ltd) 438,000
Non-Controlling Interests (SFP) 292,000
Dividends Declared (MoveMzansi Ltd) 730,000
Recognition of declared dividend and allocation to NCI.
, 1. b) Journal Entries for Non-Controlling Interests in Current
Year Profit (60% Interest)
Calculate Unrealised Profit in Inventory
Inventory held by Jump Ltd
purchased from MoveMzansi:
R950,000
950000
Mark-up policy: 25% on cost.
Therefore, the cost of this inventory
to MoveMzansi was R950,.25
-760,000.00
Unrealised Profit 190000
Adjusted Profit after Tax
Reported Profit after Tax
(MoveMzansi): R2,270,000
2270000
Less: Unrealised Profit in Ending
Inventory: (R190,000)
-190000
Intragroup Dividend (60% Interest)
The dividend declared by MoveMzansi Ltd (R730,000) must be allocated between the parent (Jump
Ltd) and the Non-Controlling Interest (NCI).
Jump Ltd's Share: R730,000 x 60%
438,000
NCI's Share: R730,000 x 40%
292,000
Journal Entry
Dr R Cr R
Dividends Receivable (Jump Ltd) 438,000
Non-Controlling Interests (SFP) 292,000
Dividends Declared (MoveMzansi Ltd) 730,000
Recognition of declared dividend and allocation to NCI.
, 1. b) Journal Entries for Non-Controlling Interests in Current
Year Profit (60% Interest)
Calculate Unrealised Profit in Inventory
Inventory held by Jump Ltd
purchased from MoveMzansi:
R950,000
950000
Mark-up policy: 25% on cost.
Therefore, the cost of this inventory
to MoveMzansi was R950,.25
-760,000.00
Unrealised Profit 190000
Adjusted Profit after Tax
Reported Profit after Tax
(MoveMzansi): R2,270,000
2270000
Less: Unrealised Profit in Ending
Inventory: (R190,000)
-190000
