Q5

Numbat Ltd owns all of the shares of Goanna Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2016.

Assume an income tax rate of 30%.

(a) On 1 July 2015, Numbat Ltd sold an item of plant costing $15 000 to Goanna Ltd for $18 000. Numbat Ltd had not charged any depreciation on the plant before the sale. Both entities depreciate assets at 10% p.a. on cost.

(b) On 1 January 2014, Goanna Ltd sold a new tractor to Numbat Ltd for $30 000. This had cost Goanna Ltd $24 000 on that day. Both entities charged depreciation at the rate of 10% p.a. on cost.

(c) On 1 July 2015, Numbat Ltd sold an item of machinery to Goanna Ltd for $9 000. This item had cost Numbat Ltd $6 000. Numbat Ltd regarded this item as inventory whereas Goanna Ltd intended to use it as a non-current asset. Goanna Ltd charges depreciation at the rate of 10% p.a. on cost.

(d) In February 2015, Numbat Ltd sold inventory to Goanna Ltd for $9 000, at a mark-up of 20% on cost. One-quarter of this inventory was unsold by Goanna Ltd at 30 June 2015.

(e) On 1 July 2014, Goanna Ltd rented a spare warehouse to be used jointly by Numbat Ltd and Galah Ltd with each company paying half the agreed rent to Goanna Ltd. The rent paid to Goanna Ltd in the 201415 year was $300 while the rent paid in the 201516 year was $350.

(a)

Dr
Cr
Cr

Dr
Cr
Dr
Cr
Dr
Cr

(b) [ ]

Dr
Dr
Cr
Dr
Cr
Cr
Dr
Dr
Cr

(c)

Dr
Cr
Cr
Dr
Cr
Dr
Cr
Dr
Cr

(d)

(e)

Dr
Cr