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FATHER LTD acquired all issued share capital of SON Ltd on 1 July 2015 for a cash payment of $800,000
On 1 January 2019 SON Ltd sold an item of plant to Father Ltd for $150,000 when its carrying value in Son’s books was $90,000 (original cost $190,000 and original estimated life of nine years). There were no other transactions between Father Ltd and Son Ltd for year ended 30 June 2019
adjustment/elimination journal entries for consolidation as at 30 June 2020
Elimination entry for consolidation on June 30DateAccount TitleDebitCredit30-Jun Plant$40,000Gain on Sale of Plant$60,000Accumulated Depreciation100,000 Date Elimination entry for…
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