i need to get the practical question solved. the topic is related to consolidation intra group transactions.

On 1 July 2016, Pandora Ltd acquired all the issued shares of Sebastian Ltd. Pandora Ltd paid $30,000 in cash and 20,000 shares in Pandora Ltd valued at $3 per share. At this date, the equity of Sebastian Ltd consisted of $66,000 share capital and $6,000 retained earnings.

At 1 July 2016, all the identifiable assets and liabilities of Sebastian Ltd were recorded at amounts equal to their fair values except for:

carrying value fair value

plant 120000 123000

patents 90000 105000

inventories 18000 22500

The plant was considered to have a further 5-year life. The patents were sold for $120,000 to an external entity on 18 August 2016. The inventory was all sold by 30 June 2017.

Additional information:

(a) Pandora Ltd sells certain raw materials to Sebastian Ltd to be used in its manufacturing process. At 1 July 2017, Sebastian Ltd held inventory sold to it by Pandora Ltd in the previous year at a profit of $600. During the 2017/2018 year, Pandora Ltd sold inventory to Sebastian Ltd for $21,000. None of this was on hand at 30 June 2018.

(b) Sebastian Ltd also sells items of inventory to Pandora Ltd. During the 2017/2018 year, Sebastian Ltd sold goods to Pandora Ltd for $4,500. At 30 June 2018, inventory which had been sold to Pandora Ltd at a profit of $300 was still on hand in Pandora Ltds inventory.

(c) On 1 July 2017, Sebastian Ltd sold an item of plant to Pandora Ltd for $15,000. This plant had a carrying amount in the records of Sebastian Ltd of $14,000 at time of sale. This type of plant is depreciated at 10% p.a. on cost.

(d) On 1 January 2017, Pandora Ltd sold an item of inventory to Sebastian Ltd for $18,000. The inventory had cost Pandora Ltd $16,000. This item was classified by Sebastian Ltd as plant. Plant of this type is depreciated by Sebastian Ltd at 20% p.a.

(e) On 1 March 2018, Sebastian Ltd sold an item of plant to Pandora Ltd. Whereas Sebastian Ltd classified this as plant, Pandora Ltd classified it as inventory. The sales price was $9,000 which included a profit to Sebastian Ltd of $1,500. Pandora Ltd sold this to another entity on 31 March 2018 for $9,900.

(f) The tax rate is 30%.

At 30 June 2018, the following financial information was provided by the two companies:

	Pandora Ltd		Sebastian Ltd
	Dr ($)	Cr ($)	Dr ($)	Cr ($)
Sales revenue		64,500		78,000
Cost of sales	30,900		46,350
Trading expenses	4,800		9,000
Office expenses	7,950		4,050
Depreciation expenses	1,800		3,900
Proceeds on sale of plant		9,000		15,000
Carrying amount of plant sold	7,500		14,000
Income tax expense	11,100		7,300
Share capital		96,000		66,000
Retained earnings (1/7/17)		48,000		31,500
Current liabilities		21,100		10,500
Deferred tax liability		11,000		15,000
Plant	57,000		107,250
Accumulated depreciation plant		18,300		33,450
Intangibles	12,000		11,100
Deferred tax assets	8,100		9,450
Shares in Sebastian Ltd	90,000		0
Inventories	28,500		24,600
Receivables	8,250		12,450
	267,900	267,900	249,450	249,450

Required:

Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Pandora Ltd for the year ended 30 June 2018.