Parent Ltd acquired equity in Subsidiary Ltd on 1 April 2011. At that date, the identifiable net assets were considered to be fairly valued and the equity of Subsidiary Ltd comprised:

Share capital	$500 000
Retained earnings	94 000
Asset revaluation surplus	21 000
	$615 000

Parent Ltd has requested your help in the preparation of their consolidated financial statements for the financial year ended 31 March 2019 and has provided you with the following information:

• At 31 March 2019, Sub Ltd declared a final dividend of $35 000, and Parent Ltd declared a final dividend of $90 000. Both these dividends were paid during April 2019.
• Subsidiary Ltd rents a small part of its warehouse to Parent Ltd at a cost of $9 000 per annum. At 31 March 2019, Parent Ltd still owed Subsidiary Ltd $1 200 of rental for the year ended 31 March 2019.
• During March 2018, Subsidiary Ltd made sales to Parent Ltd of $7 600 and recognised a profit of $3 800. Parent Ltd sold this purchase of inventory to Me Ltd on 29 April 2018.
• During March 2019, Subsidiary Ltd made sales to Parent Ltd of $9 460. The inventory sold has cost Subsidiary Ltd $5 460. At 31 March 2019, the inventory Parent Ltd had on hand included this purchase from Subsidiary Ltd.
• In 2013 the total goodwill of Subsidiary Ltd was considered by the directors to be impaired by $4 100 and impaired again in 2016 by $2 500. The directors of Parent Ltd believe that the total goodwill has been further impaired by $1 200 during this financial year ended 31 March 2019.
• During March 2018, Parent Ltd made sales to Subsidiary Ltd of $6 000 and recognised a profit of $2 860. Subsidiary Ltd sold this inventory to Yu Ltd on 28 March 2018.
• During March 2019, Parent Ltd made sales to Subsidiary Ltd of $6 850. The inventory sold has cost Parent Ltd $3 750. The inventory of Subsidiary Ltd at 31 March 2019 included this purchase.

Question 3 (a) continued:
The Consolidation Worksheet for Parent Ltd for the financial year ended 31 March 2019
	Parent Ltd	Sub Ltd	Notional Journal Entries		Group
Balance Sheet items continued:	$	$	$ Dr	$ Cr	$
Dividend payable	90 000	35 000
Various liabilities	400 600	205 000
Rent payable to Sub Ltd	1 200	-
Total liabilities	491 800	240 000
Total equity and liabilities	$1 791 800	$1 237 520
Cash	18 800	4 380
Inventory	94 000	82 000
Rent receivable	-	1 200
Dividend receivable	35 000	-
Various assets	239 000	149 940
PPE (net)	605 000	1 000 000
Investment in Subsidiary Ltd	800 000	-
Goodwill	-	-
Total assets	$1 791 800	$1 237 520