| Parent Ltd | Subsidiary Ltd | Adjustments | Final Adjustments | | Debit | Credit | Debit | Credit | Debit | Credit | | Goodwill | - | - | - | - | 550,000 | | | Inventory | 1,650,000 | | 1,050,000 | | | 75,000 | | Accounts receivable & prepayment | 450,000 | | 330,000 | | | 5,000 + 15,000 | | Cash at bank | 500,000 | | 385,000 | | | | | Investment in Claire Ltd | 2,000,000 | | | | | 2,000,000 | | Property, Plant & Equipment | | | | | | | | - Cost | 3,535,000 | | 2,500,000 | | | | | - Accumulated Depreciation | | 340,000 | | 125,000 | 14,000 | | | Accounts payable & accruals | | 290,000 | | 95,000 | 5,000 + 15,000 | | | Share capital | | 4,000,000 | | 1,000,000 | 1,000,000 | | | General reserve | | 500,000 | | 200,000 | 200,000 | | | Retained earnings 30/6/2014 | | 160,000 | | 350,000 | 250,000 + 100,000 | 10,000 | | Deferred Tax Assets | 15,000 | | | | | | | Deferred Tax Liability | | 22,000 | | | 22,500 | | | Sales | | 9,000,000 | | 4,000,000 | 1,700,000 | | | Other income | | 155,000 | | | 15,000 + 35,000 | | | Cost of sales | 2,623,000 | | 1,880,000 | | | 1,625,000 + 130,000 | | Selling & Distribution costs | 207,000 | | 180,000 | | | | | Management & Administrative expenses | 82,000 | | 85,530 | | | 35,000 + 4,000 | | Income tax expense | 1,200,000 | | 304,470 | | 30,000 | 22,500 | | Interest expense | 55,000 | | 15,000 | | | 15,000 | | Dividend income | | | | | | | | Dividend paid | 190,000 | | 40,000 | | | | | 2% Loan Payable | | | | 1,000,000 | 1,000,000 | | | 2% Loan Receivable | 1,000,000 | | | | | 1,000,000 | | 4% Loan Receivable | 1,500,000 | | | | | | | 3% Loan Payable | | | | | | | | Total | 15,007,000 | 15,007,000 | 6,770,000 | 6,770,000 | | | |