Topic 2: Consolidation: Intra-group transactions On 1 July 2016,

Topic 2: Consolidation: Intra-group transactions On 1 July 2016, Pandora Ltd assumed all the issued divides of Sebastian Ltd. Pandora Ltd compensated $30,000 in specie and 20,000 divides in Pandora Ltd valued at $3 per divide. At this conclusion, the equity of Sebastian Ltd consisted of $66,000 divide chief and $6,000 retained hues. At 1 July 2016, all the identifiable pi and liabilities of Sebastian Ltd were recitative at totals similar to their impartial values bar for: The fix was considered to accept a elevate 5-year vivacity. The patents were sold for $120,000 to an visible existence on 18 August 2016. The catalogue was all sold by 30 June 2017. Additional advice: (a) Pandora Ltd sells true raw materials to Sebastian Ltd to be used in its manufacturing way. At 1 July 2017, Sebastian Ltd held catalogue sold to it by Pandora Ltd in the prior year at a emolument of $600. During the 2017/2018 year, Pandora Ltd sold catalogue to Sebastian Ltd for $21,000. None of this was on influence at 30 June 2018. (b) Sebastian Ltd too sells parts of catalogue to Pandora Ltd. During the 2017/2018 year, Sebastian Ltd sold pi to Pandora Ltd for $4,500. At 30 June 2018, catalogue which had been sold to Pandora Ltd at a emolument of $300 was calm?} on influence in Pandora Ltd’s catalogue. (c) On 1 July 2017, Sebastian Ltd sold an part of fix to Pandora Ltd for $15,000. This fix had a carrying total in the chronicles of Sebastian Ltd of $14,000 at date of sale. This stamp of fix is depreciated at 10% p.a. on consume. (d) On 1 January 2017, Pandora Ltd sold an part of catalogue to Sebastian Ltd for $18,000. The catalogue had consume Pandora Ltd $16,000. This part was classified by Sebastian Ltd as fix. Fix of this stamp is depreciated by Sebastian Ltd at 20% p.a. (e) On 1 March 2018, Sebastian Ltd sold an part of fix to Pandora Ltd. Whereas Sebastian Ltd classified this as fix, Pandora Ltd classified it as catalogue. The sales compensation was $9,000 which included a emolument to Sebastian Ltd of $1,500. Pandora Ltd sold this to another existence on 31 March 2018 for $9,900. (f) The tax reprove is 30%. At 30 June 2018, the forthcoming financial advice was supposing by the two companies: Pandora Ltd Sebastian Ltd Dr ($) Cr ($) Dr ($) Cr ($) Sales return 64,500 78,000 Consume of sales 30,900 46,350 Trading prices 4,800 9,000 Office prices 7,950 4,050 Backbiting prices 1,800 3,900 Proceeds on sale of fix 9,000 15,000 Carrying total of fix sold 7,500 14,000 Income tax price 11,100 7,300 Divide chief 96,000 66,000 Retained hues (1/7/17) 48,000 31,500 Current liabilities 21,100 10,500 Deferred tax jurisdiction 11,000 15,000 Fix 57,000 107,250 Accumulated backbiting – fix 18,300 33,450 Intangibles 12,000 11,100 Deferred tax pi 8,100 9,450 Shares in Sebastian Ltd 90,000 0 Inventories 28,500 24,600 Receivables 8,250 12,450 267,900 267,900 249,450 249,450 Required: Prepare the coalition worksheet entries for the making-ready of the consolidated financial statements of Pandora Ltd for the year ended 30 June 2018.

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