Third Ltd acquired its 80 per cent interest and Investment in Rock Ltd is $306,160 on 1 July 2013. At that date the capital and reserves of Rock Ltd were:

Share capital $172,000 

Retained earnings $146,200 $318,200

At the date of acquisition all assets were considered to be fairly valued. The management of Third Ltd use the partial goodwill method.

During the year Third Ltd made total sales to Rock Ltd of $55,900, while Rock Ltd sold $44,720 in inventory to Third Ltd.

The opening inventory in Third Ltd as at 1 July 2021 included inventory acquired from Rock Ltd for $36,120 that cost Rock Ltd $30,100 to produce.

The closing inventory in Third Ltd includes inventory acquired from Rock Ltd at a cost of $28,896. This cost Rock Ltd $24,080 to produce.

 

Provide the 'intragroup sales and transfers' JOURNAL ENTRIES.