Jamie Jones is the assistant accountant for the Sports Ltd group. Jamie Jones has recorded the following entries in the consolidation worksheet for the year ended 30 June 2021, using a tax rate of 30%:

Transaction 1: Sports Ltd issued 1000 8% debentures of $60 at nominal value to its subsidiary company in May 2019. Interest is payable yearly each year on 30 September.

Consolidation entry 30 June 2021:

Account name	Debit ($)	Credit ($)
Interest Payable	4,800
Interest Receivable		4,800

Transaction 2: Sports Ltd sold inventory to its subsidiary company on 1 March 2020 for $35,000. This inventory cost Sports Ltd $25,000. The subsidiary plans to use this inventory as an item of plant. The subsidiary charges depreciation at a rate of 10% on cost.

Consolidation entry 30 June 2021:

Account name	Debit ($)	Credit ($)
Proceeds on sale of Plant	25,000
Carrying amount of Plant sold		15,000
Inventory		10,000
Deferred Tax Asset	3,000
Income Tax Expense		3,000

Required:

As the group accountant of Sports Ltd, you are required to review Jamies entries.

(a) For each transaction above, identify and discuss any errors or omissions by Jamie in accordance with AASB10. (4 marks)

(b) Explain the reason why the entry is incorrect in accordance with AASB10. (7 marks)

(c) In your discussion, provide all the correct consolidation worksheet entries required for each of the above transactions for the Sports group, as at 30 June 2021. Explain which account and amount will be debited and credited. Include any tax effects in your discussion. (4 marks)