QUESTION $3(30$ Marks$)$ The following are the condensed financial statements of P Limited and its subsidiary S Limited, for the financial years ended $2016$ and $2017$: STATEMENTS OF FINANCIAL POSITION AS AT $31$ DECEMBER $2023$ P Limited S Limited $2023202220232022$ R R R R ASSETS $100000176000$ Non$-$current assets Property, plant and equipment $290000190000$ Investment in S Limited: $90000$ shares at cost $270000270000560000460000100000176000$ Current assets Inventories $160000120000120000107000$ Trade and other receivables $1200006000011600064000$ Bank $2050029000270000300500209000263000171000$ TOTAL ASSETS $860500669000363000347000$ EQUITY AND LIABILITIES Share capital $(200000/100000)400000400000200000200000$ Retained earnings $440000240000136000120000$ Total equity $840000640000336000320000$ Non$-$current liabilities $8\%$ Debentures $01200000$ Current liabilities Trade payables $20500170002700022000$ Bank overdraft $0005000$ TOTAL EQUITY AND LIABILITIES $860500669000363000347000$ STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER $2023$ P Limited S Limited $2023202220232022$ R R R R Revenue $360000280000240000200000$ Cost of sales $-80000-140000-120000-100000$ Gross profit $280000140000120000100000$ Other operating expenses $-40000-60000-72000-60000$ Profit before tax $240000800004800040000$ Taxation expense $-40000-20000-32000-20000$ Profit for the period $200000600001600020000$ Other comprehensive income $0000$ Total comprehensive income for the year $200000600001600020000$ STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED $31$ DECEMBER $2023$ Retained earnings P Limited S Limited $2023202220232022$ R R R R Balance at $1$ January $2023240000180000120000100000$ Total comprehensive income for the year $200000600001600020000$ Balance at $31$ December $2023440000240000136000120000$ Additional information: $1.$ P Limited acquired the ordinary shares in S Limited on$1$ January $2022.$ The investment is shown at cost in the statement of financial position. $2.$ On $1$ January $2022$ P Limited sold a piece of machinery to S Limited and made a profit of R$20000.$ Both companies depreciate plant on a straight$-$line basis over $4$ years. $3.$ Intragroup sales of inventories between the two companies $($S Limited to P Limited$)$ at cost plus $25\%$ were as follows: $2022$ R$1200002023$ R$800004.$ P Limited had the following inventories on hand, purchased from S Limited: $31$ December $2022$ R$4000031$ December $2023$ R$600005.$ It is entity$$s policy to measure any non$-$controlling interest in an acquiree as its proportionate share of the acquiree$$s identifiable net assets. $6.$ The identifiable assets and the liabilities assumed at acquisition are shown at their acquisition$-$date fair values, as determined in terms of IFRS. $7.$ Ignore tax implications. Required Prepare the following for the P Limited group: $3\mathrm{.}1$ Analysis of the equity of S Limited for the year ended $2023.(9$ Marks$)3\mathrm{.}2.$ Pro$-$forma journal entries to effect the consolidation process for the year $2023.$ Narrations are required $(21$ Marks