FNST - Consolidated SOCI Query - BPP

anniebabe
anniebabe Registered Posts: 595 Epic contributor 🐘
Hi Guys
Just working through FNST - BPP Question Bank, Practice assessment 1
Page 244 - Claw acquired 90% of Deer. Consolidated SOCI.
Can anyone let me know how they worked out the dividend received?
the question just says that Other income £1800 of Claw included a dividend received for Deer Ltd.
What am i missing? the answer says it should be £261 - brains gone numb.

Thanks :)

Comments

  • Nps
    Nps Registered Posts: 782
    I don't have the book so can't see the question and figures, but just a thought........

    Is there perhaps an entry in Deer's individual statements that mentions a dividend paid out. You can then use that figure in conjunction with the other figures to get the £261. Or perhaps a figure in Claw's which mentions dividends received.

    As I say, I don't have the question so I may be barking up the wrong tree!
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
    Hi Nps
    It says :-
    Deer paid a dividend of £1710,000 on 17/3/x1
  • Nps
    Nps Registered Posts: 782
    Sorry, don't know then without reading the whole question. I actually have the book at home but am away visiting family at the mo so don't have access to it. Sorry! If no one else has replied by Monday, when I get back I'll try to find the question.
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
    Claw plc acquired 90% of the issued share capital and voting rights of Deer Lts on 1 April xo
    Extracts from their statement of comprehensive income for the year ended 31/3/x1 are shown below:
    Claw Deer
    Revenue 40800 18600
    Cost of Sales (24200) (7300)
    Gross Profit 16600 11300
    Other income 1800 -
    Dist and Admin (2500) (1600)
    Profit <Tax 15900 9700

    During the year Deer Lts sold goods which cost £100,000 to Claw for £480000. Half remain in stock at year end.
    Other income of Claw included a dividend received from Deer Ltd.
    Deer Ltd had paid a dividend of £1710000 on 17/3/x1

    Draft the consolidated soci for Claw and its subsidiary.
  • Nps
    Nps Registered Posts: 782
    90% of the £1710 paid out by Deer has been paid to Claw (£1539). This will be cancelled out in the consolidated statements as it is an intra-group transfer, hence the amount remaining of the £1800 of Claws other income is £261.
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
    ok , will look at it again.
    thanks
  • avalon1163
    avalon1163 Registered Posts: 11 Regular contributor ⭐
    Thanks a lot to Nps1976 - that makes perfectly sense.

    Hi Anniebabe - thanks for asking the question :-)
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