Consolidation worksheet, consolidated financial statements
On 1 July 2018, Ghostbusters Ltd acquired all the shares of Bat Ltd for $305 000 on an ex-div. basis. On this date, the equity and liabilities of Bat Ltd included the following balances:

At acquisition date, all the identifiable assets and liabilities of Bat Ltd were recorded at
amounts equal to fair value except for:

Goodwill was not impaired in any period. The plant and equipment had a further 5-year life at acquisition date and was expected to be used evenly over that time. The trademark was considered to have an indefinite life. The machinery, which was estimated to have a further 4-year life at acquisition date, was sold on 1 January 2020. Any adjustments for differences between carrying amounts at acquisition date and fair values are made on consolidation.
During the year ended 30 June 2019, all inventories on hand at acquisition date were sold, and the land was sold on 1 June 2020. Any valuation reserves created are transferred on consolidation to retained earnings when assets are sold or fully consumed.
Additional information
(a) Of the interim dividend paid by Bat Ltd in the current year, $5000 was from profits before acquisition date. All other dividends were from current year profits. Shareholder approval is not required in relation to dividends.
(b) On 1 July 2019, Bat Ltd has on hand inventory worth $12 000, being transferred from Ghostbusters Ltd in June 2019. The inventory had previously cost Ghostbusters Ltd $8000. On 31 March 2020, Bat Ltd transferred an item of plant with a carrying amount of $10 000 to Ghost Ltd for $15 000. Ghostbusters Ltd treated this item as inventory. The item was still on hand at the end of the year. Bat Ltd applied a 20% depreciation rate to this plant.
(c) On 1 January 2020, Bat Ltd acquired $8000 inventory from Ghostbusters Ltd. This inventory originally cost Ghostbusters Ltd $5000. The profit in inventory on hand at 30 June 2020 was $1000.
(d) During the year ending 30 June 2020, Bat Ltd sold inventory costing $12 000 to Ghostbusters Ltd for $18 000. Two-thirds of this was sold to external parties for $9000.
(e) On 1 January 2019, Ghostbusters Ltd sold furniture to Bat Ltd for $8000. This had originally cost Ghostbusters Ltd $12 000 and had a carrying amount at the time of sale of $7000. Both entities charge depreciation at a rate of 10% p.a.
(f) Ghostbusters Ltd sold some land to Bat Ltd in December 2019. The land had originally cost Ghostbusters Ltd $25 000, but was sold to Bat Ltd for only $20 000. To help Bat Ltd pay for the land, Ghostbusters Ltd gave Bat Ltd an interest-free loan of $12 000. Bat Ltd has as yet made no repayments on the loan.
(g) The tax rate is 30%.
On 30 June 2020 the trial balances of Ghostbusters Ltd (Ghost) and Bat Ltd were as follows:

Required
1. Prepare the consolidation journal / worksheet entries for Ghostbusters Ltd for 30/6/2020. (15 marks)
2. Update and complete the consolidation worksheet for 30/6/2020.(15 marks) Use the worksheet provided below

Financial Statements Ghost
Ltd Bat
Ltd Adjustments Group
Dr Cr
Sales revenue 220 000 182 000
Other income 62 000 20 000
282 000 202 000
Cost of sales 162 000 128 000
Other expenses 53 000 41 000
215 000 169 000
Trading profit 67 000 33 000
Gains/losses on sale of non-current assets 22 000 25 000
Profit before tax 89 000 58 000
Tax expense 20 000 18 000
Profit 69 000 40 000
Retained earnings
(1/7/19) 30 000 45 000
Transfer from BCV reserve 0 0
99 000 85 000
Dividend paid 12 000 10 000
Dividend declared 6 000 4 000
18 000 14 000
Retained earnings
(30/6/20) 81 000 71 000
Share capital 312 000 200 000
General reserve 20 000 25 000
BCVR - -
Total Equity 413 000 296 000
Deferred tax liabilities - -
Dividend payable 6 000 4 000
Current tax liability 8 000 2 500
Loan from Ghost Ltd - 12 000
Provisions 78 000 169 500
Total Liabilities 92 000 188 000
Total Liabilities + Equity 505 000 484 000