Question 2 Current liabilities On 1 January 2018, Big Bhd. (Big) acquired 640,000 ordinary shares in Bang Sdn. Trade payables 325 440 Bhd. (Bang) Interest received in advance 14 33 339 473 On the date of acquisition, the general reserve and retained earnings of Bang were RM340,000 and RM620,000 respectively. 6,189 3,213 The statements of financial position of both companies as at 31 December 2021 Additional information: are as follows: 1. As a: 31 December 2021, there was a prepaid insurance of RM5,000 recorded Big Bang as an insurance expense in the book of Big. RM'000 RAO0 0 Non-current assets 2. As at 31 December 2021, the closing inventories of Bang included goods Property, plant and equipment 2,628 1,680 amounting to RM570,000 purchased from Big. Inter-company trading is to be Investment in Bang Sdn. Bhd. 1,668 charged at a mark-up of 20%%. 4,296 1,680 3. Included in trade payables of Bang were RM33,000 due to Big. This amount Current assets includes a cheque of RM13,000 remitted (deducted) by Bang which has yet to Inventories 980 620 be received by Big as at 31 December 2021. Trade receivables of Big include Trade receivables 235 122 amount of RM46,000 due from Bang Prepaid insurance 28 11 Bank 650 780 4. Goodwill is subject to an impairment loss of 25%. 1,893 1,533 6.189 3,213 Required: Prepare the consolidated statement of financial position of Big Bhd. and its Equity and liabilities subsidiary company as at 31 December 2021 Ordinary shares of RM1 each 2,000 800 General reserve 1,260 500 (Note: Show all relevant workings for the calculation of goodwill, consolidated Retained earnings 1,390 940 general reserve, consolidated retained earnings and mon-controlling interest.)