Question

Following are the balance sheets of two companies i.e. ABC Ltd and XYZ Pty Ltd. The latter is wholly owned by ABC Ltd.

Liabilities			Assets
	ABC Ltd $	XYZ Pty Ltd $		ABC Ltd $	XYZ Pty Ltd $
Share capital	500,000	200,000	Sundry Assets	480,000	260,000
Accumulated Profit	100,000	0	20,000 Shares of XYZ Pty Ltd	200,000	0
Sundry creditors	80,000	60,000
TOTALS	680,000	260,000	TOTALS	680,000	260,000

Requirements:

1. You are required to consolidate the two balance sheets. Your answer must be in accordance with AASB standard.
2. Provide Journal entry for consolidation of XYZ Pty Ltd into books of ABC Ltd