The accounts of the group entity, Star Ltd and Track Ltd, as 30 June, 20X2, show
ID: 2512262 • Letter: T
Question
The accounts of the group entity, Star Ltd and Track Ltd, as 30 June, 20X2, show the following:
Intragroup sales during the year ended 30 June 20X2 were $20,000
Intragroup unrealised profit in inventory at 1st July 20X1 was $1,500
Intragroup unrealised profit in inventory at 30 June 20X2 was $1,000
Consolidation worksheet 30 June 20X2
Dr./Cr
Star
Ltd
Track Ltd
Elimination
Consolidated Statement
Dr
Cr
Sales
Cr
267,600
217,000
Inventory 1-7-20X1
Dr
28,000
19,000
Purchase
Dr
104,000
111,000
132,000
130,000
Inventory 30-06-20X2
Cr
32,000
22,000
Retained earnings
Cr
5,000
4,000
Assets
Inventory
Dr
32,000
22,000
Required: Complete the elimination column in the extract from the worksheet for intragroup sales/purchase and unrealised profit in inventory.
Consolidation worksheet 30 June 20X2
Dr./Cr
Star
Ltd
Track Ltd
Elimination
Consolidated Statement
Dr
Cr
Sales
Cr
267,600
217,000
Inventory 1-7-20X1
Dr
28,000
19,000
Purchase
Dr
104,000
111,000
132,000
130,000
Inventory 30-06-20X2
Cr
32,000
22,000
Retained earnings
Cr
5,000
4,000
Assets
Inventory
Dr
32,000
22,000
Explanation / Answer
Consolidation worksheet 30 June 20X2 Dr./Cr Star Ltd Track Ltd Elimination Consolidated Statement Dr Cr Sales Cr $267,600.00 $217,000.00 $20,000.00 $464,600.00 Inventory 1-7-20X1 Dr $28,000.00 $19,000.00 $1,500.00 $45,500.00 Purchase Dr $104,000.00 $111,000.00 $20,000.00 $195,000.00 $132,000.00 $130,000.00 $0.00 $21,500.00 $240,500.00 Inventory 30-06-20X2 Cr $32,000.00 $22,000.00 $1,000.00 $53,000.00 Retained earnings Cr $5,000.00 $4,000.00 $9,000.00 Assets Inventory Dr $32,000.00 $22,000.00 $1,000.00 $53,000.00
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