The following worksheet (extract) has been prepared for the consolidation of Esk Ltd and Urban Ltd.

Required

Describe why each of the adjustment entries in the worksheet is required during consolidation making reference to a corresponding Debit or Credit entry. There may be more than one possible reason for an adjustment, any valid reason will be accepted.

	Description
a) Receivables Cr
b) Inventories Dr
c) Shares in Urban Cr
d) Plant & Equipment Dr
e) Accum Depreciation Cr
f) Dividend payable Dr
g) Share capital Dr
h) Retained earnings Dr
I) General Reserve Dr
j) Business Combination Valuation Reserve Dr of Cr

Esk Ltd Urban Ltd Adjustments Group Dr Cr Receivables 25 200 20 000 12 600 32 600 Inventories 55 000 42 000 4 000 101 000 Shares in Urban Ltd 153 800 153 800 Plant and equipment 210 000 107 000 23 000 294 000 (85 000) (22 000) (7 000) (114 000) e Accum, depreciation- plant and equipment Dividend payable 25 000 12 600 12 600 25 000 Share capital 130 000 90 000 90 000 130 000 Retained earnings 93 500 36 000 36 000 93 500 General reserve 56 500 12 000 12 000 56 500 15 800 5 600 Business combination 10 200 valuation reserve