Safari ..ll @ 11% 1:36 PM Assignment 4 - Question (2021)(1) Q To edit and save, sign in with a subscription Sign in = MODULE ACCOUNTING ASSIGNMENT ASSIGNMENT 4 (50 MARKS) The following are the condensed financial statements of P Lid and its subsidiary S Lid for the reporting period ended 31 March 2021 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 P Ltd Slid ASSETS Property, plant and equipment 2 000 000 800 000 Investment in Suid: 60 000 shares al cost 420 000 Loan to S Lid 85 000 Inventories 615 000 120 000 Trade receivables 380 000 200 000 Total assets 3.500 000 9.80 000 EQUITY AND LIABILITIES Share capital 2 500 000 500 000 Revaluation surplus 40 000 Retained emings 750 000 175 000 Loan from P Lid 850ool Trade payables 250 000 180 000 Total equity and liabilities 3 500 000 980 000 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 March 2021 P Ltd S Lid Revenue 1 000 000 400 000 Cost of sales (480 000 (190 000 Gross profit 520 000 210 000 Dividend received from Slid 12 000 Other expenses (232000) (80 000) Profit before tax 300 000 130 000 Income tax expense 180 000 140 000) PROFIT FOR THE YEAR 220 000 80 000 Other comprehensive income for the year, net of tax 30 000 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 250 000 90 000 Pud Retained earnings 600 000 Slid Retained earnings 105 000 Balance at 1 April 2020 Changes in equity for 2021 Total comprehensive income for the year Profit for the year Dividend paid Other comprehensive income for the year Balance at 31 March 2021 90 000 220 000 (70 000) 120 000 750 000 175.000 MODULE ACCOUNTINO ASSIGNMENT 22 MOULE ACCOUNTING ASSIGNMENT 42021 ASSIGNMENT 4 (CONTINUED) ADDITIONAL INFORMATION Plod bought 120 000 shares in Suid on 1 June 2016. At that date the equity of the companies were as follows: Puid SLIU R R Authorised Share capital P Ltd 2 000 000 Shares (one voting right attached to each share) S Ltd 500 000 Shares (one voting right attached to each share) Issued Share Capital 1 000 000 shares 2 500 000 100 000 shares 500 000 Other components of equity at 1 June 2016 Revaluation surplus 40 000 Retained earnings 400 000 60 000 P Lid elected to measure the non-controlling interests in an acquiree at fair value. At the acquisition date the fair value of the non-controlling interests was R7.00 per share PLtd recognises the investment in S Lid using the cost method Assume that the identifiable assets acquired and the abilities assumed at acquisition date are shown at their acquisition-date fair values, as determined in terms of IFRS 3 Since 1 March 2017, P Lad has acquired some of its inventories from Suid at cost price plus 33% Total intragroup sales of inventories for the reporting period amounted to R200 000 Included in the inventories of P Lid were the following inventories that were purchased from S Lid: 1 April 2020 R50 000 31 March 2021 R100 000 REQUIRED 4.1 Prepare the proforma journals on consolidation for all intragroup items. (13) Journal narratives are required, but tax implications may be ignored 42 Prepare the analysis of the shareholders' equity of Lad 22 31 March 2021. (12) 4.3 Prepare the consolidated financial statements of Lad and its subsidiary for the reporting period ended 31 March 2021 (25) (50) Safari ..ll @ 11% 1:36 PM Assignment 4 - Question (2021)(1) Q To edit and save, sign in with a subscription Sign in = MODULE ACCOUNTING ASSIGNMENT ASSIGNMENT 4 (50 MARKS) The following are the condensed financial statements of P Lid and its subsidiary S Lid for the reporting period ended 31 March 2021 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 P Ltd Slid ASSETS Property, plant and equipment 2 000 000 800 000 Investment in Suid: 60 000 shares al cost 420 000 Loan to S Lid 85 000 Inventories 615 000 120 000 Trade receivables 380 000 200 000 Total assets 3.500 000 9.80 000 EQUITY AND LIABILITIES Share capital 2 500 000 500 000 Revaluation surplus 40 000 Retained emings 750 000 175 000 Loan from P Lid 850ool Trade payables 250 000 180 000 Total equity and liabilities 3 500 000 980 000 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 March 2021 P Ltd S Lid Revenue 1 000 000 400 000 Cost of sales (480 000 (190 000 Gross profit 520 000 210 000 Dividend received from Slid 12 000 Other expenses (232000) (80 000) Profit before tax 300 000 130 000 Income tax expense 180 000 140 000) PROFIT FOR THE YEAR 220 000 80 000 Other comprehensive income for the year, net of tax 30 000 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 250 000 90 000 Pud Retained earnings 600 000 Slid Retained earnings 105 000 Balance at 1 April 2020 Changes in equity for 2021 Total comprehensive income for the year Profit for the year Dividend paid Other comprehensive income for the year Balance at 31 March 2021 90 000 220 000 (70 000) 120 000 750 000 175.000 MODULE ACCOUNTINO ASSIGNMENT 22 MOULE ACCOUNTING ASSIGNMENT 42021 ASSIGNMENT 4 (CONTINUED) ADDITIONAL INFORMATION Plod bought 120 000 shares in Suid on 1 June 2016. At that date the equity of the companies were as follows: Puid SLIU R R Authorised Share capital P Ltd 2 000 000 Shares (one voting right attached to each share) S Ltd 500 000 Shares (one voting right attached to each share) Issued Share Capital 1 000 000 shares 2 500 000 100 000 shares 500 000 Other components of equity at 1 June 2016 Revaluation surplus 40 000 Retained earnings 400 000 60 000 P Lid elected to measure the non-controlling interests in an acquiree at fair value. At the acquisition date the fair value of the non-controlling interests was R7.00 per share PLtd recognises the investment in S Lid using the cost method Assume that the identifiable assets acquired and the abilities assumed at acquisition date are shown at their acquisition-date fair values, as determined in terms of IFRS 3 Since 1 March 2017, P Lad has acquired some of its inventories from Suid at cost price plus 33% Total intragroup sales of inventories for the reporting period amounted to R200 000 Included in the inventories of P Lid were the following inventories that were purchased from S Lid: 1 April 2020 R50 000 31 March 2021 R100 000 REQUIRED 4.1 Prepare the proforma journals on consolidation for all intragroup items. (13) Journal narratives are required, but tax implications may be ignored 42 Prepare the analysis of the shareholders' equity of Lad 22 31 March 2021. (12) 4.3 Prepare the consolidated financial statements of Lad and its subsidiary for the reporting period ended 31 March 2021 (25) (50)