3 Peace Ltd acquired 450,000 ordinary shares of happy Ltd on first January 2017 for GHS1,540,000. At the date, the balance on the retained earnings of Happy Ltd was a credit of GHS140,000 and the balance on the capital surplus was credited of GHS 28,000 The statement of financial position of Peace Ltd and Happy Ltd at 31 December 2018 is as follows: Assets Peace Happy Ltd Ltd GHS000 GHS000 Non-current assets: Property, plant and equipment 6,720 820 Investment in shares (2.740) 0 9.4601 820 Current asset: baventories. 360 170 Trade receivables 370 230 Current account of happy Ltd 75 Cash and cash equivalent 15 10 820 410 Total assets 10.280 1.230 Equity and liabilities: Equity Stated capital Capitol surplus Retained earnings 39 5,000 600 200 40 1.210 220 or B TECH ACCOUNTING 6.410 860 vi) vii) Non-current liability: 3,200 50 50 Mortgage Current liabilities: Trade payables Current account 670 270 50 10,280 1,230 Additional information: iv) i) ii) iii) The investment in shares in the statement of financial position of Peace Ltd consist of the investment in Happy Ltd (at cost) and investment in Joy Ltd. The investment in Joy constitutes 10% of the stated capital of the investee entity. The fair value of the plant of Happy was GHS200,000 in excess of its carrying amount at 1 January 2017. This plant is to be depreciated over five years from the acquisition date on a straight line basis with no residual value. Happy Ltd has not reflected these adjustments in its financial statements. Peace Ltd sold a plant to Happy Ltd on 1" January 2012 for GHS96,000. Ter plant had cost GHS 100,000 in January 2011 and had a carrying amount of GH 80,000 on 1 January 2018. The plant is to be depreciated over its estimated remaining useful life of four year. Peace Ltd sold goods to Happy Ltd at a price of GHS25,000 on 29 December 18 which were not received by Happy Ltd until 3rd January 2019. Peace Ltd calculates selling price at a markup of 25% on cost. A major customer of Happy Ltd with an outstanding balance of GHS20.000 went into receivership just prior to the end of the reporting period. It is unlikely that any part of the outstanding balance will be received. Happy Ltds financial accountant has forgotten to adjust for this. It is the policy of the group to value non-controlling interest at proportionate share of the net assets of the subsidiary Peace Ltd undertakes annual review of the goodwill impairment. At 31st December 2018, an impairment of GHS400,000 was identified in the respect of happy Ltd. Required: Prepare the consolidated statement of financial position of peace Ltd group as at 31st December 2018. (20 marks)