602 1 475 800 1 025 1 050 980 1932 1 645 1 200 400 DEBITS Land and buildings at carrying amount Machinery and equipment a carrying amount Investment in Peachd Investment in Grape Lid-Oost Investment in Mango Lid-cost Cost of sales Operating expenses Finance costs Income tax expense Ordinary dividends declared Inventories Debtors Bank 570 410 57 950 1 400 1 117 160 400 90 300 200 775 68 17 52735 258 2930 89.8. biti Lid=838.38. 125 200 245 160 7072 Page 1 of 2 FACULTY OF COMMERCE, MANAGEMENT AND LAW ADDITIONAL INFORMATION 1. Grape Lid 1.1 Strawberry Lad acquired a 40 interest in Grape Limited on 1 April 2012 for $400 000 The retained camings of Grape Led amounted to $300 000 at that date. Al assets and abilities were regarded as being tay walued 1.2 Strawberry Lad od inventories from 1 April 2018 on a regular basis to Grape Lid at a profit of 25% on cost Toales from Sumbeny Lad to Grge amounted to NSS od for the current financial year. Inventories to the value of N5100 000 which was sold by Strawbery Lotto Grape Lid was on hand 31 March 2020 and N$200 000 at 31 March 2011 1.3 On 1 April 2019 machinery with a carrying value of N$125000 was sold to Strawberry Lad for N$150 000. The machine was still included in the property, plant and equipment of Strawberry Lid at 31 March 2021. Depreciation is provided at 20% per annum on the cost price of machinery 2. Peach Lid 2.1 Strawberry Lid acquired 960 000 ordinary shares in Peach Lad for NS 200 000 a number of years ago when Peach Lad's retained earnings amounted to NS 120 000. On this date Strawberry Lid valued vacant land of Peach Lad S0000 higher than the book value at that stage. Poach did not recognise the evaluation in their records. Al other assets and Sabines were regarded as being fairly valued 22 Peach Lid sells inventories to Strawberry Lad at cost price plus 2016. Included in Inventories of Strawberry Lade the following inventories purchased from each Lad 1 April 2020 NS40000 31 March 2021 NS 80 000 The inventories on 1 April 2020 were sold fully to third parties by 31 March 2021. financial year Total sales of inventories by Peach Lie to Strawberry Ltd amounted to 600 000 during the 2021 1 Mango Ltd 3.1 Peach Lid acquired 600 000 ordinary shares in Mango Lad for $950 000 on 1 October 2020. Al assets and abilities were regarded as being tainty valued. 22 The monthly sales and associated cost of sales of Margo Ltd increased with 25 from 1 August 2020. The operating expenses of Margo Laced evenly throughout the year 4 General 4.1 Accounting policies 4.1.1 Investments are accounted for at cost in the separate financial statements of Strawberry Le Group Lad 4.1.2 It is the accounting policy of the Strawberry Lad group to measure the non-controlling interest at its proportionate share of the acquiree's identifiable et assets Page 14 of 22 FACULTY OF COMMERCE, MANAGEMENT AND LAW 4.1.3 Investments in associated companies are accounted for in accordance with the equity method 42 Taxation 4.2.1 Assume that the statutory tax rate has remained unchanged at 2016 for a number of years. 4 Dividends The dividends of al companies in the group were approved and authorised at directors meetings held on 15 March 2001. The dividends will be paid on 30 April 2021. The dividends were correctly accounted for by al companies in the group. Dividends payable an receivable are included in creditors and debtors respectively in the trial balances of the Individual companies Marks REQUIRED: (al Prepare all the proforma consommates in the books of the group for the reporting period anded 31 March 2021. Journal narrations are noted Indicata at what amounts the following line tems will be included in the consolidated financial statements of the Strawberry Land Group as at 31 March 2021 Investment in associate Share of profit of te TOTAL MARKS 602 1 475 800 1 025 1 050 980 1932 1 645 1 200 400 DEBITS Land and buildings at carrying amount Machinery and equipment a carrying amount Investment in Peachd Investment in Grape Lid-Oost Investment in Mango Lid-cost Cost of sales Operating expenses Finance costs Income tax expense Ordinary dividends declared Inventories Debtors Bank 570 410 57 950 1 400 1 117 160 400 90 300 200 775 68 17 52735 258 2930 89.8. biti Lid=838.38. 125 200 245 160 7072 Page 1 of 2 FACULTY OF COMMERCE, MANAGEMENT AND LAW ADDITIONAL INFORMATION 1. Grape Lid 1.1 Strawberry Lad acquired a 40 interest in Grape Limited on 1 April 2012 for $400 000 The retained camings of Grape Led amounted to $300 000 at that date. Al assets and abilities were regarded as being tay walued 1.2 Strawberry Lad od inventories from 1 April 2018 on a regular basis to Grape Lid at a profit of 25% on cost Toales from Sumbeny Lad to Grge amounted to NSS od for the current financial year. Inventories to the value of N5100 000 which was sold by Strawbery Lotto Grape Lid was on hand 31 March 2020 and N$200 000 at 31 March 2011 1.3 On 1 April 2019 machinery with a carrying value of N$125000 was sold to Strawberry Lad for N$150 000. The machine was still included in the property, plant and equipment of Strawberry Lid at 31 March 2021. Depreciation is provided at 20% per annum on the cost price of machinery 2. Peach Lid 2.1 Strawberry Lid acquired 960 000 ordinary shares in Peach Lad for NS 200 000 a number of years ago when Peach Lad's retained earnings amounted to NS 120 000. On this date Strawberry Lid valued vacant land of Peach Lad S0000 higher than the book value at that stage. Poach did not recognise the evaluation in their records. Al other assets and Sabines were regarded as being fairly valued 22 Peach Lid sells inventories to Strawberry Lad at cost price plus 2016. Included in Inventories of Strawberry Lade the following inventories purchased from each Lad 1 April 2020 NS40000 31 March 2021 NS 80 000 The inventories on 1 April 2020 were sold fully to third parties by 31 March 2021. financial year Total sales of inventories by Peach Lie to Strawberry Ltd amounted to 600 000 during the 2021 1 Mango Ltd 3.1 Peach Lid acquired 600 000 ordinary shares in Mango Lad for $950 000 on 1 October 2020. Al assets and abilities were regarded as being tainty valued. 22 The monthly sales and associated cost of sales of Margo Ltd increased with 25 from 1 August 2020. The operating expenses of Margo Laced evenly throughout the year 4 General 4.1 Accounting policies 4.1.1 Investments are accounted for at cost in the separate financial statements of Strawberry Le Group Lad 4.1.2 It is the accounting policy of the Strawberry Lad group to measure the non-controlling interest at its proportionate share of the acquiree's identifiable et assets Page 14 of 22 FACULTY OF COMMERCE, MANAGEMENT AND LAW 4.1.3 Investments in associated companies are accounted for in accordance with the equity method 42 Taxation 4.2.1 Assume that the statutory tax rate has remained unchanged at 2016 for a number of years. 4 Dividends The dividends of al companies in the group were approved and authorised at directors meetings held on 15 March 2001. The dividends will be paid on 30 April 2021. The dividends were correctly accounted for by al companies in the group. Dividends payable an receivable are included in creditors and debtors respectively in the trial balances of the Individual companies Marks REQUIRED: (al Prepare all the proforma consommates in the books of the group for the reporting period anded 31 March 2021. Journal narrations are noted Indicata at what amounts the following line tems will be included in the consolidated financial statements of the Strawberry Land Group as at 31 March 2021 Investment in associate Share of profit of te TOTAL MARKS