Corporate Financial Accounting Assignment
The draft balance sheets of Zeus group of companies as at 31 December 2017 are shown below:
|
|
Zeus Ltd $
|
Apollo Ltd $
|
Venue Ltd $
|
|
Non-current assets
|
|
|
|
|
Plant assets
|
109,000
|
20,000
|
14,000
|
|
Investment
|
65,500
|
|
|
|
|
147,500
|
20,000
|
14,000
|
|
Current assets
|
|
|
|
|
Inventories
|
43,500
|
35,400
|
12,500
|
|
Accounts receivable
|
26,000
|
22,300
|
7,000
|
|
Due from group companies
|
14,000
|
|
4,000
|
|
Bank
|
13,500
|
19,375
|
|
|
|
97,000
|
77,075
|
23,500
|
|
|
271,500
|
91,075
|
37,500
|
|
Ordinary shares
|
100,000
|
50,000
|
30,000
|
|
Preference shares
|
|
10,000
|
|
|
General reserve
|
65,000
|
|
|
|
Retained profits
|
41,000
|
7,000
|
(8,000)
|
|
|
206,000
|
67,000
|
22,000
|
|
Current liabilities
|
|
|
|
|
Bank overdraft
|
|
|
3,500
|
|
Accounts payable
|
37,500
|
11,000
|
7,000
|
|
Owed to group companies
|
|
11,700
|
5,000
|
|
Preference dividend payable
|
|
375
|
|
|
Tax payable
|
28,000
|
7,000
|
|
|
|
65,500
|
30,075
|
15,500
|
|
|
271,500
|
97,075
|
37,500
|
Notes:
1. The issued ordinary shares of the Zeus group are as follows:
Zeus Ltd 100,000 ordinary shares
Apollo Ltd 50,000 ordinary shares
10,000 preference shares with dividend of $0.075 per share
Venus Ltd 30,000 ordinary shares
2. Zeus's investments are made up of the following:
In Apollo Ltd
30,000 ordinary shares on 1 January 2012 for $32,000
8,000 preference shares on 1 April 2013 for $7,500
In Venus Ltd
30,000 ordinary shares on 1 July 2014 for $20,000
3. On 1 January 2012 Apollo Ltd had a debit balance of $2,000 in retained profits and on 1 July 2014 Venus Ltd had a credit balance of $2,000 in retained profits.
4. Zeus Ltd had remitted $1,000 to Venus Ltd on 30 December 2017. This was not received or recorded in the accounting records of Venus Ltd until 3 January 2018.
5.
|
|
Zeus Ltd $
|
Apollo Ltd $
|
Venue Ltd $
|
|
Due from group companies
|
|
|
|
|
Apollo
|
8,000
|
|
4,000
|
|
Venues
|
6,000
|
|
|
|
Due to group companies
|
|
|
|
|
Zeus
|
|
7,700
|
5,000
|
|
Venus
|
|
4,000
|
|
6. Apollo Ltd sold goods to Zeus Ltd at cost plus 20%. At the balance sheet date Zeus Ltd still had $9,600 worth of such goods in inventory.
Instructions: You are required to prepare the consolidated balance sheet of Zeus Group as at 31 December 2017.