750 Question 4 The following are the statements of financial position of Pearl Ltd, Diamond Ltd and ruby Led as at 31 July 2018: Assets Pearl Ltd Diamond Ltd Ruby Ltd Non-current assets 000 "000 "000 Property, plant and equipment 12,830 7,690 5,130 Investment in Diamond 5,040 Investment in Ruby 1,390 19.260 7,690 5.130 Current assets Inventories 1,995 1,770 985 Trade receivables 2,025 910 760 Bank 470 25 4,490 2,680 1.770 Total assets 23,750 10,370 6,900 Equity and Liabilities Equity Ordinary share capital 1 10,000 5,000 4,000 Retained earnings 7,930 3,210 1.250 Total equity 17,930 8,210 5,250 Now-current liabilities 10% debenture 2,000 1,200 900 Current Liabilities Trade payables 3,095 450 Bank overdraft 150 Taxation 725 360 3.820 960 750 Total equity and liabilities 23,750 10,370 6,900 Additional Information: 1. Pearl Ltd acquired three million of the ordinary shares of Diamond Ltd on 15 October 2016 when the retained carnings of Diamond Lad were 1,800,000 2. On 1" March 2017 Pearl Ltd acquired 30% of the ordinary shares of Ruby Ltd when their retained earnings were 500,000 3. On l" August 2015 Diamond Lad sold an item of plant to Pearl Lad for 360,000. The asset has a cost 400,000 two years earlier. It is group policy to depreciate plant over 10 years on a straight-line basis. Pearl Ltd depreciated the plant purchased from Diamond Ltd over its remaining life of eight years. 4. During the last week in July 2018 Diamond Ltd shipped goods at an invoice value of 60,000 to Pearl Ltd. Diamond Ltd cared a mark-up of 20% on the sale. However, Pearl Ltd did not receive the goods until the first alloweek in August 2018. 5. Non-controlling interests at 1" October 2016 are measured at their proportionate share of net assets of Diamond Ltd and goodwill is not deemed impaired at 31" July 2018. 144 Requirement: (a) Prepare the consolidated Statement of Financial Position for the Pearl Group as at 31* July 2018 showing the following accounts: Cost of Control Non-Controlling Interests Consolidated Reserves 45 marks