On 1 July 20X5 Jemima Ltd gained control of Kate Ltd by acquiring 70 of its shares for $90,000 At this date, Kate had share capital $70,000 and retained profits $40,000 Below is an extract of financial information of both entities as at 30 June 20X9, the end of the current year Jemima Ltd Kate Ltd Net profit 80,000 70,000 Retained profits (opening) 120,000 50,000 Profit available 200,000 120,000 less Dividend paid 20,000 9,000 Retained profits (ending) 180,000 111,000 Share capital 150,000 70,000 Owners' equity 330,000 181,000 Additional information The partial goodwill method is used Impairment of consolidation goodwill was assessed, on 30 June 20X8, to be $2,000 Kate sold inventory to Jemima during 20X8 for $16,000 The cost of inventory to Kate was $10,000 All of this inventory was still in stock as at 30 June 20X9 Kate sold a vehicle to Jemima on 30 June 20X6 for $36,000 The vehicle originally cost Kate $40,000 and had zero residual value Kate depreciated the vehicle at the rate of 20 p a using the straight line method The vehicle was 1 year old at the time of the intragroup sale The vehicle's residual value and useful life were not affected by the sale Jemima depreciates the vehicle also using the straight line method Kate sold inventory to Jemima in 20X9 at the price of $5,000 The mark up on the sale was $2,000 During 20X9, 20 of the inventory was sold to external parties Required a)Based on the information given in the question, prepare all the necessary elimination entries at 30 June 20X9 (Reminder Dates Narrations are not required for the entries There will be no marks allocated to workings ) 11 marks b)Show NCI's allocation for the year ended 30 June 20X9 for the following (Reminder There will be no marks allocated to workings ) 2 marks Net profit Retained profits (opening) Please provide your answers in the space below Reminder clearly label the DR and CR sides for each elimination entry (otherwise no marks) Do not have unnecessary space between your answers (there's a limit of 40 lines in the answer space)

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On 1 July 20X5 Jemima Ltd gained control of Kate Ltd by acquiring 70% of its shares for $90,000. At this date, Kate had share

On 1 July 20X5 Jemima Ltd gained control of Kate Ltd by acquiring 70% of its shares for $90,000. At this date, Kate had share capital $70,000 and retained profits $40,000. Below is an extract of financial information of both entities as at 30 June 20X9, the end of the current year:

Jemima Ltd

Kate Ltd

Net profit

80,000

70,000

Retained profits (opening)

120,000

50,000

Profit available

200,000

120,000

lessDividend paid

20,000

9,000

Retained profits (ending)

180,000

111,000

Share capital

150,000

70,000

Owners' equity

330,000

181,000

Additional information:

The partial goodwill method is used. Impairment of consolidation goodwill was assessed, on 30 June 20X8, to be $2,000.
Kate sold inventory to Jemima during 20X8 for $16,000. The cost of inventory to Kate was $10,000. All of this inventory was still in stock as at 30 June 20X9.
Kate sold a vehicle to Jemima on 30 June 20X6 for $36,000. The vehicle originally cost Kate $40,000 and had zero residual value. Kate depreciated the vehicle at the rate of 20% p.a. using the straight-line method. The vehicle was 1 year old at the time of the intragroup sale. The vehicle's residual value and useful life were not affected by the sale. Jemima depreciates the vehicle also using the straight-line method.
Kate sold inventory to Jemima in 20X9 at the price of $5,000. The mark up on the sale was $2,000. During 20X9, 20% of the inventory was sold to external parties.

Required:

a)Based on the information given in the question, prepare all the necessary elimination entries at 30 June 20X9. (Reminder: Dates/Narrations are not required for the entries. There will be no marks allocated to workings.)11 marks

b)Show NCI's allocation for the year ended 30 June 20X9 for the following (Reminder: There will be no marks allocated to workings.)2 marks

Net profit
Retained profits (opening)

Please provide your answers in the space below.Reminder: clearly label the DR and CR sides for each elimination entry (otherwise no marks). Do not have unnecessary space between your answers (there's a limit of 40 lines in the answer space).