AB Plc. acquired 80% of shares in CD Plc. when the reserves of CD Plc. stood at K240,000. During the year ended 30 June 20X7 CD Plc. sold goods to AB Plc for K800,000, at a profit margin of 25%. As at 30 June 20X7 K180,000 of these goods remained unsold in the inventory of AB Plc.

AB Plcs accounts payable include amounts owing to CD Plc of K90, 000. The following shows the summarized Financial Statements of the two entities.

AB Plc CD Plc

K000 K000

Non-current assets 12,000 8,000

Current assets 11,000 9,000

Investments 8,000

31,000 17,000

Share capital 12,800 10,000

Accumulated profit 15,000 2,000

Current liabilities 3,200 5,000

1,000 17,000

REQUIRED:

1. Prepare the consolidated balance as at 30^th June 20X7.