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Case 3: Intragroup transactions (5%) Ammi Ltd owns all of the shares of VStone Ltd. In relation to the following intragroup transactions, all parts of

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Case 3: Intragroup transactions (5%) Ammi Ltd owns all of the shares of VStone Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (a) On 1 January 2018, Ammi Ltd sold inventory costing $6000 to VStone Ltd at a transfer price of $9000. On 1 September 2018, VStone Ltd sold half these items of inventory back to Ammi Ltd, receiving $3000 from Ammi Ltd. Of the remaining inventory kept by VStone Ltd, half was sold in January 2019 to Goanna Ltd at a loss of $200. (b) On 1 January 2019, VStone Ltd sold an item of plant to Ammi Ltd for $2000. Immediately before the sale, VStone Ltd had the item of plant on its accounts for $3000. VStone Ltd depreciated items at 5% p.a. on the diminishing balance and Ammi Ltd used the straight-line method over 10 years. (c) On 1 July 2018, Ammi Ltd sold a motor vehicle to VStone Ltd for $12 000. This had a carrying amount to Ammi Ltd of $9600. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost. (d) During the 2017-18 period, Ammi Ltd sold inventory to VStone Ltd for $9000, recording a before-tax profit of $1800. Half this inventory was unsold by VStone Ltd at 30 June 2018, (e) VStone Ltd sells second-hand machinery. Ammi Ltd sold one of its depreciable assets (original cost $80 000, accumulated depreciation $64 000) to VStone Ltd for $ 10 000 on 1 January 2019. VStone Ltd had not resold the item by 30 June 2019. (f) On 1 May 2019, VStone Ltd sold inventory costing $300 to Ammi Ltd for $380 on credit. On 30 June 2019, only half of these goods had been sold by Ammi Ltd, but Ammi Ltd had paid $280 back to VStone Ltd. Case 3: Intragroup transactions (5%) Ammi Ltd owns all of the shares of VStone Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (a) On 1 January 2018, Ammi Ltd sold inventory costing $6000 to VStone Ltd at a transfer price of $9000. On 1 September 2018, VStone Ltd sold half these items of inventory back to Ammi Ltd, receiving $3000 from Ammi Ltd. Of the remaining inventory kept by VStone Ltd, half was sold in January 2019 to Goanna Ltd at a loss of $200. (b) On 1 January 2019, VStone Ltd sold an item of plant to Ammi Ltd for $2000. Immediately before the sale, VStone Ltd had the item of plant on its accounts for $3000. VStone Ltd depreciated items at 5% p.a. on the diminishing balance and Ammi Ltd used the straight-line method over 10 years. (c) On 1 July 2018, Ammi Ltd sold a motor vehicle to VStone Ltd for $12 000. This had a carrying amount to Ammi Ltd of $9600. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost. (d) During the 2017-18 period, Ammi Ltd sold inventory to VStone Ltd for $9000, recording a before-tax profit of $1800. Half this inventory was unsold by VStone Ltd at 30 June 2018, (e) VStone Ltd sells second-hand machinery. Ammi Ltd sold one of its depreciable assets (original cost $80 000, accumulated depreciation $64 000) to VStone Ltd for $ 10 000 on 1 January 2019. VStone Ltd had not resold the item by 30 June 2019. (f) On 1 May 2019, VStone Ltd sold inventory costing $300 to Ammi Ltd for $380 on credit. On 30 June 2019, only half of these goods had been sold by Ammi Ltd, but Ammi Ltd had paid $280 back to VStone Ltd

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