The following are the statements of financial position of H Ltd and its subsidiary C Ltd as at 31^st August 2019:

	H	C
	$	$
Non-current assets	628,500	605,000
Investment in Chickled limited	400,000	nil
Goodwill
Total Non-current assets	1,028,500	805,000
Current assets
Inventory	32,000	25,000
Debtors	36,500	20,000
Bank balance	38,000	0
Total current assets	106,500	45,000
Total assets	1,135,000	850,000
Equity and liabilities
Ordinary shares N$2 each	500,000	400,000
Retained profit	297,000	400,000
Total equity	797,000	800,000
Current liabilities
Trade creditors	248,000	25,000
Bank overdraft	90000	25,000
Total current liabilities	338,000	50,000
Total equity and liabilities	1,135,000	850,000

Additional information

1. H acquired its interest in C as shown below

Date – No. of shares acquired	Cost of Investment N$	C Retained Earning
31/08/2011 – 80, 000 shares	210,000	210,000
31/08/2015 – 80, 000 shares	365,000	320,000

2. On 31/07/2017, it disposed of (sold) 40,000 shares and received $175,000. The retained earnings of C on that date was $350,000.

3. The fair value of the existing holdings in C was as follows

Date	Fair Value of Existing holdings N$
30/08/2015	218,000
30/08/2017	600,000

4. C Ltd has not issued new shares since they were incorporated in the year 2010.

5. It is a group policy to value the Non-Controlling Interest (NCI) using the proportion of net asset method.

Required:

2. In reference to the above financial statements and additional information provided, Prepare the Consolidated Statement of financial position of H and its subsidiary as at 31^st August 2019. Show all your workings including relevant pro-forma consolidation journal entries.

Answer rating: 100% (QA)

Answer 1 Consolidated Statement of Financial Position of H and its Subsidiary as at 31st August 2019 NonCurrent Assets Property Plant and Equipment 628500 Goodwill 400000 Investment in Chickled Ltd To... View the full answer