FAC2602 Semester 1 2023 Assessment 3 MEMO

SOLUTION
Assessment 3 – Semester 1 - 2023

, SOLUTION 1 (16 MARKS)
Dr Cr
R R

JOURNAL A

Retained earnings – Ackermen Ltd 130 000
Cost of sales – Ackermen Ltd 130 000
(780 000 x 20/120)

Cost of sales – Ackermen Ltd 135 000
Inventory – Mr Priced Ltd 135 000
[(940 000 - 130 000) x 20/120]

JOURNAL B

Profit on sale of asset/Other income – Mr Priced Ltd 1 100 000
Property, plant and equipment/Sewing machines – Ackermen Ltd 1 100 000
[1 740 000 – (3 200 000 x 2/10)]

Accumulated depreciation – Ackermen Ltd 45 833
Depreciation – Mr Priced Ltd 45 833
(1 100 000 x 10% x 5/12)

JOURNAL C

Non-controlling interests 141 000
Dividends payable – Mr Priced Ltd 141 000
(470 000 x 30%)