FAC2602 ASSIGNMENT 2 – SEMESTER 1 OF
2021
PART A
Pro – forma consolidation journal entries of the Burgers – Eat Ltd Group
(a) Elimination of the unrealized profit included in the opening and closing
inventory
DR CR
R R
Opening Inventory
25 22 000
Retained Earnings (Burgers – Eat Ltd) (110 000 ∗ )
125
22 000
Cost of Sales (Burgers – Eat Ltd)
Closing Inventory
25
Cost of sales (Burgers – Eat Ltd) (37 500 ∗ 125) 7 500
Inventory (Travelwell Ltd) 7 500
(b) Recording of the non – controlling interests` share in Travelwell Ltd`s profit
since acquisition to the beginning of the current year
DR CR
R R
Retained Earnings [(341 260 − 185 500) ∗ 20%] 31 152
Non – controlling interests 31 152
(c) Recording the non – controlling interests` share in Travelwell Ltd`s
revaluation surplus of the current year
DR CR
R R
Non – controlling interest (SCI) [(1 194 000 − 1 159 000) ∗ 20%] 7 000
Non – controlling interest (SFP) 7 000
2021
PART A
Pro – forma consolidation journal entries of the Burgers – Eat Ltd Group
(a) Elimination of the unrealized profit included in the opening and closing
inventory
DR CR
R R
Opening Inventory
25 22 000
Retained Earnings (Burgers – Eat Ltd) (110 000 ∗ )
125
22 000
Cost of Sales (Burgers – Eat Ltd)
Closing Inventory
25
Cost of sales (Burgers – Eat Ltd) (37 500 ∗ 125) 7 500
Inventory (Travelwell Ltd) 7 500
(b) Recording of the non – controlling interests` share in Travelwell Ltd`s profit
since acquisition to the beginning of the current year
DR CR
R R
Retained Earnings [(341 260 − 185 500) ∗ 20%] 31 152
Non – controlling interests 31 152
(c) Recording the non – controlling interests` share in Travelwell Ltd`s
revaluation surplus of the current year
DR CR
R R
Non – controlling interest (SCI) [(1 194 000 − 1 159 000) ∗ 20%] 7 000
Non – controlling interest (SFP) 7 000
