Question

how we get 186000 ( I red underlined it below ) what numbers we calculated to get 186000 ?   where and how exactly it came from ? show me the numbers

Refrence

Deegan. (2016). Financial Accounting . McGraw-Hill Education, Australia

QueSΠΟΗ 12 The following financial statements of Mungo Ltd and its subsidiary Barry Ltd have been extracted from their financial records at 30 June 2019. Mungo Ltd ($000) Barry Ltd ($000) 1 380 (928) 452 1 160 (476) 684 186 53 Detailed reconciliation of opening and closing retained earnings Sales revenue Cost of goods sold Gross profit Dividends received from Barry Ltd Management fee revenue Gain on sale of plant Expenses Administrative expenses Depreciation Management fee expense Other expenses Profit before tax Tax expense Profit for the year Retained earnings 30 June 2018 (98.8) (49) (202.2) 411 123 288 638.8 926.8 (274.8) 652 (77.4) (113.6) (53) (154) 286 84.4 201.6 478.4 680 (186) 494 Dividends paid Retained earnings—30 June 2019 652 700 494 400 Shareholders' equity Retained earnings Share capital Current liabilities Accounts payable Tax payable Non-current liabilities Loans 109.4 82.6 92.6 50 347 1 891 232 1 268.6 118.8 184 124.6 58 Current assets Accounts receivable Inventory Non-current assets Land and buildings Plantat cost Accumulated depreciation Investment in Barry Ltd 652 448 599.7 (171.5) 712 1891 711.6 (277.6) 1 268.6

Answer 1

The query is regarding the entry J pertaining to dividends.
Kindly observe the detailed reconciliation of opening and closing retained earnings. We can observe of Mungo Ltd, a item called 'Dividends Received from Barry Ltd $ 186,000'(below gross profit). Also in case of Barry Ltd 'Dividends Paid $ 186000'.

Given that Mungo Ltd owns 100% in Barry Ltd. Hence all dividends Barry Ltd declared will be paid to Mungo Ltd. In other words, all of the dividends of Barry Ltd is received by Mungo Ltd.

The journal entries for ,
A. Payment of dividend in books of Barry Ltd is:

Dividend Paid a/c Dr	186000
To Bank a/c		186000

Receipt of dividend by Mungo Ltd is:

Bank a/c Dr	186000
To Dividend Revenue a/c		186000

So while we consolidate statements we need to eliminate all intercompany transactions. Accordingly we pass reverse entries for the above.
Hence Dividend Revenue account is to be debited and Dividend paid is to be credited.
The entry is:

Dividend Revenue a/c Dr	186000
To Dividend Paid a/c		186000

Hope this will help. Do comment in case of any query regarding this solution.