KWAME NKRUMAH UNIVERSITY OF SCIENCE AND

BSC ACCOUNTING

NAME
STUDENT NUMBER
INDEX NUMBER
COURSE
DATE

ASSIGNMENT ONE

HH GROUP
CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED 31/03/2020

GHCM
Sales (250,800+140,500-10,000)

Less: Cost of Sales (141,200+86,000-10,000+100)

Gross Profit

Less: Admin. & General expenses (50,200+28,000+2)

Less: Selling & Distribution (23,000+15,400-10)

Profit before taxation

Investment Income

Group share of profit from associate (4080*20%)

Less Taxation (11,800+3,552)

Net profit after tax

Profit Attributable
Parent
NCI (7,548-100-2)*20%
PROFIT FOR THE YEAR
 RETAINED EARNINGS ACCONTS

Bal b/d (103,000-10+31,000)

Profit for the year
less: Dividend

WORKINGS
STEP 1
GROUP STRUCTURE

HH

BB(80%) AA(20%)

Date of acquisition 1/4/2019

Date of financial statements 3/13/2020

STEP2
CANCEL INTRA GROUP
DR CR
GHCM GHCM
Sales 10,000
Purchase 10,000
Being goods sold by BB to HH

STEP 3
ADJUST UNREALIZED PROFIT
500million*25/125

GHC100million

Share of profit
Consolidated Reserves NCI
 80%*100million 20%*100million
GHC80million GHC20million

STEP 4
FAIR VALUE ADJUSTMENT
Provision for loss Depreciation
PPE(110million - 100million) 10million *20%
GHC10million GHC2million

NB
INVESTMENT
GHCM
Investment in the question 530
Less: Proposed ordinary dividend;
Subsidiary(600*80%) 480
Associate(200*20%) 40
Investment amount 10
TY OF SCIENCE AND TECHNOLOGY

31/03/2020

GHCM
381,300

217,300

164,000

78,202

38,390

47,408

10

816

15,352

32,882

31,392.80
1,489.20
32,882.00
GHCM
133,990
31,392.8
5000
160,382.8