Statements of Financial Position for Ponny, Sonny and Aunty as at $31$ December $2018$

$-$

Ponny

Sonny Aunty

P$\text{'}000$ P$\text{'}000$

P$\text{'}00$

$0$

Non$-$current assets $($PPE$)$

$28,300$

$8,1008,050$

Investment in Sonny @ cost

$6,900$

$--$

$35,20081008050$

Current Assets

Inventories

$1,450$

$600250$

Trade receivables$/$Debtors

$1,650$

$550550$

Cash in hand

$850$

$50150$

$3,950$

$1,200950$

Total Assets

$39,150$

$9,3009,000$

Equity

Share capital $($P$1/$ shares$)$

$4,000$

$1,2001,400$

The accumulated Reserves

$27,050$

$5,3004,600$

$31,050$

$6,5006,000$

Non$-$ Current Liabilities

Long term loans

$6,600$

$2,4002,550$

Current liabilities

Trade payables$/$creditors

$1,500$

$400450$

Total Equity & Liabilities

$39,150$

$9,3009,000$

$1$ On $1/04/18$ Ponny Ltd purchased $80\%$ holding in Sonny Ltd for P$6900000$ in cash. Sonny Ltd$\text{'}$s total

comprehensive income for the year ended $31$ December $2018$ was P$1000000,$ accruing evenly over the

year. Dividends were not yet paid for the year by Sonny Ltd$.$

Ponny Ltd purchased $30\%$ holding in Aunty Ltd on $1/07/18$ for $250,000$ of its own shares. The share

market value of Ponny Ltd Ltd$\text{'}$s at the date of the exchange was P$9\mathrm{.}40$ each. This investment transaction

was not yet recorded in Ponny Ltd$.$ The reserves for Aunty Ltd$\text{'}$s were P$4300000$ on $1/7/18.$

$2.$ On acquisition, the fair value of Sonny Ltd$\text{'}$s assets was equal to their net book value except the

following whose value was above the net book value

Inventory P$150,000$

Plant and equipment $($a $10$ yr remaining useful life$)$ P$600,000$

Sonny Ltd did not adjusted the net book value as a result of the fair value exercise. Stock was sold by

Sonny Ltd before year end.

$3$ On the date of purchase the non$-$controlling interest in Sonny Ltd was to be revalued at its fair value of

P$1600000.$ An impairment test done at year end showed that the consolidated goodwill for Sonny Ltd

was impaired by P$75,000.$ In addition an impairment loss of P$20,000$ was to be recognised in respect of

Ponny Ltd$\text{'}$s investment in Aunty Ltd in the Group$$s final accounts.

$4$ On $1/10/18,$ Sonny Ltd sold goods to Ponny Ltd for P$100,000$ at a gross profit margin of $40\%.$ The

goods were still in Ponny Ltd$\text{'}$s inventories at the year end. No other sales were done between the two

parties during the year. At $31/12/18$ Ponny Ltd$\text{'}$s current account with Sonny Ltd was P$65000($credit$).$

The balance did not agree with balance in Sonny Ltd$\text{'}$s books because of the cash in transit amounting to

P$35000$ which was not yet received by year end by Sonny Ltd$.$

After the acquisition, Aunty Ltd sold goods to Ponny Ltd for P$200,000$ at a mark$-$up of $25\%$ on cost$.$ By

the year end $$ of the goods remained in Ponny Ltd$\text{'}$s inventory.

Required

Do the consolidated statement of financial position for the Group as at $31/12/18.$