On 1 July 2011, Blue Ltd gained control of Pink Ltd by purchasing 60 of its ordinary shares for $59 000 At this date Pink Ltd had paid up capital $40 000 and retained profits $26 000 Abridged financial statements for the financial year ended 30 June 2013 are shown in the worksheet presented on next page Additional information During May 2012, Blue Ltd sold inventory to Pink Ltd at a profit of $5 000 This inventory was sold by Pink Ltd to external parties during October 2012 In April 2013, Pink Ltd sold inventory to Blue Ltd for $8 000, in which Pink Ltd made a profit of $2 570 Included in other assets (net) of Pink Ltd is a car purchased from Blue Ltd on 1 January 2013 for $10 000 At the time of sale the car had a carrying amount of zero Blue Ltd has recorded the gain on sale under Other revenue Pink Ltd charged $2 500 depreciation on the car for the year ended 30 June 2013 The partial goodwill method is used and goodwill impairment is $900 in 2012 and $650 in 2013 Blue Ltd has other share investments (not consolidated) REQUIRED (a) Show the required eliminations in the 30 June 2013 consolidation worksheet (as below) NOT allocation ( S ) Net profit Retained profits I July 2012 Dividend Paid up capitalConsolidation worksheet as at 30 June 2013 Blue Pink Sum Eliminations Dr Cr Sales 94 000 82000 136 000 Cost of sales 5 000 36 000 93 000 Gross prot 3 000 46 000 83 000 Other revenue 1' 000 6 000 23 000 Otherexpenses 122 0001 134 0001 156 0001 Net prot 32 000 18 000 50 000 Retained prots 1 July 201 6 600 38 000 44 600 Prot available 38 600 56 000 94 600 less Dividend 2 000 15 000 42 000 Retained prots 30 June 2013 11 600 41 000 52 600 Paidup capital 90 000 40 000 130 000 Owner equity 101 600 81 000 182 600 Dividend payable 2' 000 15 000 42 000 Other liabilities 12 000 17 500 29 500 Accumulated depreciation 4 500 4 500 Tomi squirm liabilities 140 500 118 000 258 500 asset carious Inventory 13 400 67 000 80 400 Dividend receivable 10 T50 10 3'50 Investment in subsidiary 59 000 59 000 Other assets (net) 5 450 51 000 108 450 Total assets 140 600 118 000 2580

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On 1 July 2011, Blue Ltd gained control of Pink Ltd by purchasing 60% of its ordinary shares for $59 000. At this date Pink

On 1 July 2011, Blue Ltd gained control of Pink Ltd by purchasing 60% of its ordinary shares for $59 000. At this date Pink Ltd had paid-up capital $40 000 and retained profits $26 000. Abridged financial statements for the financial year ended 30 June 2013 are shown in the worksheet presented on next page.

Additional information:

During May 2012, Blue Ltd sold inventory to Pink Ltd at a profit of $5 000. This inventory was sold by Pink Ltd to external parties during October 2012.
In April 2013, Pink Ltd sold inventory to Blue Ltd for $8 000, in which Pink Ltd made a profit of $2 570.
Included in other assets (net) of Pink Ltd is a car purchased from Blue Ltd on 1 January 2013 for $10 000. At the time of sale the car had a carrying amount of zero. Blue Ltd has recorded the gain on sale under Other revenue. Pink Ltd charged $2 500 depreciation on the car for the year ended 30 June 2013.
The partial goodwill method is used and goodwill impairment is $900 in 2012 and $650 in 2013.
Blue Ltd has other share investments (not consolidated).

REQUIRED

(a) Show the required eliminations in the 30 June 2013 consolidation worksheet (as below)

NOT allocation ( S ) Net profit Retained profits I July 2012 Dividend Paid- up capitalConsolidation worksheet as at 30 June 2013 Blue Pink Sum Eliminations Dr Cr Sales 94 000 82000 136 000 Cost of sales 5? 000 36 000 93 000 Gross prot 3? 000 46 000 83 000 Other revenue 1'? 000 6 000 23 000 Otherexpenses 122 0001 134 0001 156 0001 Net prot 32 000 18 000 50 000 Retained prots 1 July 201?. 6 600 38 000 44 600 Prot available 38 600 56 000 94 600 less Dividend 2? 000 15 000 42 000 Retained prots 30 June 2013 11 600 41 000 52 600 Paidup capital 90 000 40 000 130 000 Owner\": equity 101 600 81 000 182 600 Dividend payable 2'? 000 15 000 42 000 Other liabilities 12 000 17 500 29 500 Accumulated depreciation 4 500 4 500 Tomi squirm + liabilities + 140 500 118 000 258 500 asset carious Inventory 13 400 67 000 80 400 Dividend receivable 10 T50 10 3'50 Investment in subsidiary 59 000 59 000 Other assets (net) 5? 450 51 000 108 450 Total assets 140 600 118 000 2580