a. Prepare the consolidated statement of profit or loss and other comprehensive income of A Ltd Group for the year ended 30 June 2018. (13)

b. Consolidated statement of financial position for the year ended 30 June 2018. (12)

QUESTION 2 [25 MARKS The financial statements of A Ltd and B Ltd for the year ended 30 June 2018 were as follows: INCOME STATEMENT FOR THE YEAR ENDED 30-06-2018 A LTD B LTD Sales 1 445 000 382 500 Cost of goods sold (782 000) (163 750) Gross profit 663 000 218 750 Administration expenses (255 000) (48 750) 408 000 170 000 Dividends from Bitd 102 000 Dividends receivable from B Lid 40 000 550 000 170 000 Profit before tax Company tax (124 000) (47000) Profit after tax 426 000 123 000 Transfer to General Reserve (100.000) 150.000 325 000 73000 Dividends paid (76 500) (127 500) proposed (229.500) 150.000 20000 (104 500) Add Retained profits bid 3855.00 139.500 405 500 35 000 FINANCIAL POSITION AS AT 30/06/2018 A LTD B LTD ASSETS NS NS Tangible non-current assets 1 088 000 474 000 Ordinary shares in B Ltd. at cost (Investment in Bitd) 340 000 Current Assets Inventory 255 000 212 500 Accounts receivable 138 000 97 500 40 000 Dividends receivable Cash at bank 134 000 38.500 1 995 000 822 500 EQUITY AND LIABILITIES Ordinary Share Capital (N$1 shares) 575 000 260 000 General reserves 190 000 80 000 Retained profits old 405 500 35 000 1 170 500 375 000 Current Liabilities Creditors 471 000 350 500 Taxation 124 000 47 000 Proposed dividends 229.500 50.000 1 995 000 822 500 Additional information: i. ii. A Ltd acquired 80% of the ordinary shares in B Ltd on 1 July 2016 when the latter's retained profits and general reserves were N$100 000 and N$30 000 respectively. Goodwill arising on acquisition should be written off in full against retained profits on 30 June 2018 Assume the non-controlling interests are measured at acquisition at the proportionate share of the fair value of the acquiree's identifiable net assets. B Ltd sold goods to A Ltd valued at N$120 000 being cost plus 25% 1/3 of these goods were still in A Ltd's inventory on June 2018. iii. iv. REQUIRED