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”On 1 July 2014 Galaxy limited(GL) acquired controlling interest in Beta limited(BL).The following information has been extracted from the financial statements of GL and BL for year ended 30 June 2015.
(FIGURES IN FIRST COLUMN ARE OF GL AND IN SECOND COLUMN OF BL)
Retained earnings (01 July 2014) :- 40 / 18
Profit for the year ended 30 June 2015 : – 20 / 6Inter company sales(at invoice value) : – 25 / 30
Inter company purchases remained unsold at year end :- 9 / 5
Inter company current account balances :- 7 / 4Other relevant information is as under:
Inter company sales are invoiced at cost plus 20%.The difference between the current account balances is due to goods dispatched by GL on 30 June 2015 which were received by BL on 5 July 2015.
Required:
Amount of consolidated retained earnings as at 30 June 2015”.How to calculate this consolidated retained earnings Sir?
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