On $1$ July $2019,$ Diana Ltd acquired $100\%$ of the issued shares of Charles Ltd for $$320000.$ At the date of acquisition, the shareholders$$ equity of Charles Ltd consisted of:

$

Share capital $200000$

General reserve $50000$

Retained earnings $30000$

$280000$

At $30$ June $2023,$ the accounts of the two companies are presented below.

Diana Ltd

$ Charles Ltd

$

Sales $360000195000$

Cost of goods sold $(230000)(120000)$

Gross profit $13000075000$

Dividends revenue $14000-$

Interest revenue $30005000$

$14700080000$

Less Expenses

Depreciation $110007000$

Financial expenses $90009000$

Selling expenses $800010000$

Profit before tax $11900054000$

Tax expense $4800020000$

Profit after tax $7100034000$

Retained earnings $1$ July $20226000010000$

$13100044000$

Interim dividend paid $100006000$

Final dividend proposed $3000010000$

Retained earnings $30$ June $20239100028000$

$$

Statement of financial position Diana Ltd

$ Charles Ltd

$

Shareholders$$ equity

Retained earnings $9100028000$

Share capital $350000200000$

General reserve $3000050000$

Liabilities

Accounts payable $450005000$

Dividend payable $3000010000$

Accrued interest $$ Diana Ltd $-1000$

Loan $$ Diana Ltd $-40000$

Other liabilities $4000010000$

$586000344000$

Assets

Cash at bank $20001000$

Deposits $65000$

Inventory $4000030000$

Interest receivable $1000-$

Loan $$ Charles Ltd $40000$

Investment in Charles Ltd $320000$

Plant and equipment $110000180000$

Accumulated depreciation $(45000)(40000)$

Land and buildings $120000102000$

Accumulated depreciation $(5000)(14000)$

Other assets $300020000$

$586000344000$

Additional information:

$$ The identifiable net assets of Charles ltd were recorded at fair value at the date of acquisition.

$$ In applying the impairment test for goodwill in the current year, the directors have determined that a write$-$down of $$10000$ is required for consolidation purposes. The cumulative goodwill impairment write$-$downs for prior years amounted to $$15000.$

$$ An item of plant and equipment owned by Charles $($cost $$30000$ and accumulated depreciation of $$15000)$ was sold to Diana Ltd for $$13000$ on $1$ July $2020.$ Charles depreciated the asset at $10\%$ per annum straight$-$line on original cost $($assuming a $10-$year economic life$).$ Diana, assuming a further economic life for the plant and equipment of five years from its date of acquisition, has applied a depreciation rate of $20\%$ straight$-$line from the date of transfer of the asset.

$$ The opening inventory of Charles Ltd includes unrealised profit of $$2000$ on inventory transferred from Diana Ltd during the prior financial year. All of this inventory was sold by Charles Ltd to parties external to the group during the year ended $30$ June $2023.$

$$ During the current financial year, Charles Ltd purchased inventory from Diana Ltd for $$30000.$ The inventory had previously cost Diana Ltd $$24000.$ One$-$third of this inventory was sold to outsiders by Charles during the year.

$$ Charles Ltd borrowed $$40000$ from Diana Ltd during the financial year. Charles paid $$2000$ interest on this loan during the year. In addition, a further $$1000$ in interest has been recognised as an accrued expense in Charles Ltd$$s accounts and as interest receivable in Diana Ltd$$s accounts. Interest expense is included in Charles Ltd$$s accounts under the financial expenses heading.

$$ On $15$ July $2022,$ Charles Ltd paid a final dividend of $$8000$ to Diana Ltd from profits for the prior financial year.

$$ Charles also paid an interim dividend of $$6000$ to Diana Ltd on $1$ February $2023.$ In addition, Charles Ltd has provided for a final dividend amounting to $$10000.$ Diana Ltd has not recognised this dividend as a receivable prior to receipt.

$$ The tax rate is $30\%.$

Prepare the consolidation journal entries necessary to prepare consolidated accounts for the year ending $30$ June $2023$ for the group comprising Diana Ltd and Charles Ltd$.$