Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tulip co acquired 80% of the share capital of daff

Tulip Co acquired 80% of the share capital of Daffodil Co on 1 June 2015....

90.2K

Verified Solution

Question

Accounting

Tulip Co acquired 80% of the share capital of Daffodil Co on 1 June 2015. The summarised draft statements of profit or loss for Tulip Co and Daffodil Co for the year ended 31 May 2016 are shown below:

Tulip Co Daffodil Co
'000 '000
Sales revenue 8,400 3,200
Cost of sales (4,600) (1,700)
Gross profit 3,800 1,500
Operating expenses (2,200) (960)
Profit before tax 1,600 540
Taxation (600) (140)
Profit for the year 1,000 400

During the year Tulip Co sold goods costing 1,000,000 to Daffodil Co for 1,500,000. At 31 May 2016, 30% of these goods remained in Daffodil Cos inventory.

Required:

Prepare the Tulip group consolidated statement of profit or loss for the year ended 31 May 2016.

TULIP GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 MAY 2016

'000
Sales revenue
Cost of sales
Gross profit
Operating expenses
Profit before tax
Taxation
Profit for the year
Attributable to:
Owners of the parent
Non-controlling interest

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students