Page 352 - F1 Integrated Workbook STUDENT 2018

Chaptter 20

Exxampple 1

On 1 Januaryy 20X0 Zebbedee acquuired all off the ordinaary shares of Xavier.

Thee following statementts of profit or loss and other comprehensiive incomee
havve been produced byy Zebedee and Xavieer for the yeear ended 31 Decemmber
20XX0.

Zeebedee Xavier
$000 $000
Revvenue 1,260 520
Cosst of sales (420) (210)
––––– –––––
Grooss profit 840 310
Disstribution coosts (180) (60)
Admministrativee expenses (120) (90)
––––– –––––
Proofit from opperations 540 160
Inveestment inncome fromm Xavier 36 –
––––– –––––
Proofit before ttaxation 576 160
Taxxation (130) (26)
––––– –––––
Proofit for the yyear 446 134
Othher compreehensive inncome – –
––––– –––––
Tottal comprehensive income 446 134
––––– –––––
Durring the yeear ended 331 Decembber 20X0, Zebedee hhad sold $884,000 woorth
of ggoods to XXavier. These goods wwere sold aat a mark-up of 50% on cost. OOn
31 Decemberr 20X0 Xavvier still had $36,000 worth of thhese goodds in
inveentories.

Reqquired:

Preepare the cconsolidaated statemment of prrofit or losss and othher
commprehenssive incomme for the ZZebedee ggroup for the year eended
31 December 20X0.

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