H Limited a holding company made sales amounting to US$100,000/- to S Limited, it's subsidiary. S Limited still have 50% goods in stock.

On Consolidation the profit that H made on the remaining inventory would be eliminated

IN H Limitted 

Sales value increase100,000 

Balance of customers  Increases100,000 

Inventory decreases by100,000 - profit

INS Limitted 

The value of purchases increase100,000

Balance of Increases100,000 creditors

Inventory Increases bb50000

Sales value increase50,000 + profit