QUESTION $2$

NON$-$CONTROLLING INTEREST

Ltd acquired $75\%$ interest in Liklik Lid

$(20$ MAPRS

ourchased from Liklikela Ltd held an inventory of K $80000$ which had been

The following inform Lid at a profit of K $15000.$

i$)$ Liklik Lis available for the year ended $30$ June $2024.$

$000.$ Bikpeld inventory to Bikpela Ltd for K $250000$ which had cost LiklikLid K $200$

ii$)$ Bikpelapela Ltd has this entire inventory on hand at year end

$000.$ Likitd sold Inventory to Liklik Ltd for K $80000$ which had cost Bikpela Lid K $55$

iii$)$ The Liklikl Ltd has half of this inventory on hand at the end of the year.

Bikperating profit after tax is as follows.

Liklik Ltd K K $8000000$

iv$)$ Bikpela Ltd provided security services to Liklik Ltd and received K $10000$ during the year.

v$)$ The company tax is $30\%.$

Required:

$($a$)$ Prepare consolidation journal entries.

$(10$ Marks$)$

$($b$)$ Calculate non$-$controlling interest $($OEI$)$ in Liklik Litd's operating profit.

$(5$ Marks$)$

$($c$)$ Calculate the consolidated profit.

$(5$ Marks$)$