Question 1: Case Study: Calculation XYZ Limited is a subsidiary of ABC Limited. The following transactions took between them during the month of March:

1 st - XYZ Limited paid rent $1000 to ABC Limited for the month of March.

2 nd - XYZ Limited declared a dividend of $1,500 to ABC Limited.

13 th - XYZ Limited paid the dividend to ABC Limited declared on 2nd March.

14th - ABC Limited lends $10,000 to XYZ Limited paying interest at 10% every month. 15th - ABC Ltd issues 10 $100 debentures with an interest rate of 15% p.a. payable on 15 March of each year to XYZ Limited.

Required: Provide consolidation worksheet adjusting entries for each of the transactions listed above.

Question 2: Why is it necessary to make adjustments for intragroup transactions?

Question 3: Where an intragroup transaction involves a depreciable asset, why is depreciation expense adjusted?