Self Testing Exercise 10.3 and 10.4 solution

[Robyn Milligan]

I am struggling to find out how you work out the figures of Retained Earnings 01/07/13 $346,000 in solution 10.3 and $,1014,000 in solution 10.4. These are found on page 440 and 441 of the text book.
Please could you show me how I work these out. Thanks

[Chandrika]

Hi Robyn,
10.3 – Retained Earnings is Credit nature (Equity is Credit Nature), Rena Ltd and Lady Ltd has an opening balance of $115,000 & 320,000 = $435,000
Then you have few elimination entries , Debits total of $109,000 and a credit of 20,000
When you add them all together consolidation column has $346,000.
ie $435,000 less Debits 109,000 add Credits 20,000 = $346,000.
Same with 10.4
If you require explanation regarding elimination entries please email me to @appliededucation.edu.au">assessor@appliededucation.edu.au