QUESTION 1 Venus Ltd acquired 100 of the issued shares of Mars Ltd on 1 July 2010 The following intra group transactions are relevant to the Venus Ltd consolidated financial statements for the 2016 financial year (1) Dividends paid and proposed by the two companies for the 2016 financial year are as follows Venus Ltd $300,000 final dividend proposed $150,000 interim dividend paid Mars Ltd $200,000 final dividend proposed $100,000 interim dividend paid (2) During the year ended 30 June 2016, Mars Ltd sold goods to Venus Ltd for $80,000 These goods cost Mars Ltd $60,000 At 30 June 2016, 25 of these goods remained in Venus Ltds inventory (3) During the year ended 30 June 2016, Venus Ltd sold goods to Mars Ltd for $200,000 These goods cost Venus Ltd $140,000 40 of these goods remained in Mars Ltds inventory at 30 June 2016 (4) During the year ended 30 June 2015, Mars Ltd sold goods to Venus Ltd for $100,000 These goods cost Mars Ltd $75,000 At 30 June 2015, 20 of these goods remained in Venus Ltds inventory (5) Both Venus Ltd and Mars Ltd use the periodic inventory method (6) Payment has been made for all intra group sales except for $60,000 owed by Venus Ltd to Mars Ltd at 30 June 2016 (7) On 1 July 2014, Venus Ltd sold an item of plant to Mars Ltd for $400,000 The plant had an original cost to Venus Ltd of $300,000 with accumulated depreciation of $100,000 at 1 July 2014 At 1 July 2014, the plant had a remaining useful life of 5 years and a zero salvage value The Venus Ltd group uses straight line depreciation (8) The company income tax rate is 30 Required Show all consolidation adjusting entries needed to eliminate the above intra group transactions for a complete set of consolidated financial statements for financial year ended 30 June 2016 in accordance with AASB 10

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QUESTION 1 Venus Ltd acquired 100% of the issued shares of Mars Ltd on 1 July 2010. The following intra-group transactions are relevant to the

QUESTION 1

Venus Ltd acquired 100% of the issued shares of Mars Ltd on 1 July 2010. The following intra-group transactions are relevant to the Venus Ltd consolidated financial statements for the 2016 financial year:

(1) Dividends paid and proposed by the two companies for the 2016 financial year are as follows:

Venus Ltd $300,000 final dividend proposed. $150,000 interim dividend paid.

Mars Ltd $200,000 final dividend proposed. $100,000 interim dividend paid.

(2) During the year ended 30 June 2016, Mars Ltd sold goods to Venus Ltd for $80,000. These goods cost Mars Ltd $60,000. At 30 June 2016, 25% of these goods remained in Venus Ltds inventory.

(3) During the year ended 30 June 2016, Venus Ltd sold goods to Mars Ltd for $200,000. These goods cost Venus Ltd $140,000. 40% of these goods remained in Mars Ltds inventory at 30 June 2016.

(4) During the year ended 30 June 2015, Mars Ltd sold goods to Venus Ltd for $100,000. These goods cost Mars Ltd $75,000. At 30 June 2015, 20% of these goods remained in Venus Ltds inventory.

(5) Both Venus Ltd and Mars Ltd use the periodic inventory method.

(6) Payment has been made for all intra-group sales except for $60,000 owed by Venus Ltd to Mars Ltd at 30 June 2016.

(7) On 1 July 2014, Venus Ltd sold an item of plant to Mars Ltd for $400,000. The plant had an original cost to Venus Ltd of $300,000 with accumulated depreciation of $100,000 at 1 July 2014. At 1 July 2014, the plant had a remaining useful life of 5 years and a zero salvage value. The Venus Ltd group uses straight-line depreciation.

(8) The company income tax rate is 30%.

Required:

Show all consolidation adjusting entries needed to eliminate the above intra-group transactions for a complete set of consolidated financial statements for financial year ended 30 June 2016 in accordance with AASB 10.