Additional information: 1. On 1 July 2017, Marigold Bhd acquired 80% of the ordinary shares of Sunflower Bhd for RM7,044,000 when the retained profit of Sunflower Bhd had a credit balance of RM200,000 and general reserve of RM400,000 2. On 1 April 2020, Marigold Bhd acquired 75% of Daisy Bhds issued ordinary shares for RM1,050,000 and 60% of the 8% debentures for RM180,000. 3. On 1 July 2017, the fair value of the building of Sunflower Bhd was RM60,000 more than its book value. Sunflower Bhd had not adjusted its accounts to reflect the new value. The remaining useful life of the building at that date was 6 years. 4. On 15 April 2020, soon after the acquisition of Daisy Bhd, Daisy sold one of its plant to Marigold for RM1,200,000. The carrying value of the plant was RM1,000,000. The remaining useful life of the plant was 5 years. The group depreciates all property, plant and equipment on a yearly basis, charging a full years depreciation in the year of acquisition and none in the year of disposal. 5. During the year, Marigold Bhd sold goods at a price of RM2,000,000 to Sunflower Bhd making a profit of 20% on selling price. A quarter of these goods remain unsold in Sunflower Bhd at 30 June 2020. At reporting date, Sunflower Bhd still owes Marigold Bhd RM400,000. 6. Bills payable of Sunflower Bhd are all in favour of Marigold Bhd. Marigold Bhd had discounted RM30,000 of them. 7. At the end of the year, Sunflower Bhd made a bonus issue of 200,000 ordinary shares of RM1 each out of the general reserve. This transaction had not been recorded yet. 8. Both Sunflower and Daisy paid the interim ordinary dividends on 5 January 2020. At reporting date, the two companies declared final ordinary dividends for the year of RM1,000,000 (Sunflower) and RM600,000 (Daisy). Both companies have not recorded the dividends declared, and Marigold Bhd has not recognized its share of these dividends. 9. Included in the operating expenses of Marigold, Sunflower and Daisy are the debenture interests for the year. Marigold has not accounted for its share of the debenture interest from Daisy. 10. The goodwill of Sunflower Bhd was impaired by 20% at 30 June 2020. 11. Profits are assumed to accrue evenly. Non-controlling is measured as a proportion of the identifiable net assets.

Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020.

Statement of Profit or Logs for the year ended 80 June 2020 Marigold Sunflower Bhd Bhd RM000 RM000 Revenue 12,000 8,000 Cost of goods sold (6,000) (4,000) Dividend from Sunflower 128 Operating expenses (1,600) (1,000) Profit before tax 4,528 3,000 Taxation (1,528) (800) Profit after tax 8,000 2,200 Daisy Bhd RM000 6,000 (3,000) (800) 2,200 (500) 1,700 Marigold Bhd Statement of Changes in Equity for the year ended 30 June 2020 Ordinary Preference General share share reserve RM000 RM000 RM000 Balance 1 July 2019 20,000 10,000 1,200 Profit for the year Transfer to general reserve 400 Final Ordinary dividend Balance 30 June 2020 20,000 10,000 1,600 Retained profits RM000 4,800 3,000 (400) (200) 7,200 Sunflower Bhd Statement of Changes in Equity for the year ended 30 June 2020 Ordinary General Retained shares reserve profits RM1000 RM1000 RM 000 Balance 1 July 2019 8,000 400 1,400 Profit for the year 2,200 Interim Ordinary dividend (160) Balance 30 June 2020 8,000 3,440 400 Daisy Bhd Statement of Changes in Equity for the year ended 80 June 2020 Ordinary General Retained shares reserve profits RM1000 RM000 RM000 Balance 1 July 2019 4,000 400 1,000 Profit for the year 1,700 Interim Ordinary dividend (280) Balance 30 June 2020 4,000 2,420 400 Statement of Financial Position as at 30 June 2020 Marigold Sunflower Bhd Bhd RM1000 RM'000 Daisy Bhd RM 000 28,000 8,160 6,180 Property, plant and equipment Investments Inventories Trade receivables Bill receivables Cash at bank 800 200 8,954 1,446 2,000 200 620 41,220 3,000 400 1,000 280 400 18,240 200 40 7,420 8,000 4,000 Ordinary shares 5% Preference shares General reserves Retained profits 8% Debentures Trade payables Bills payables Ordinary dividend payable 400 2,420 20,000 10,000 1,600 7,200 600 1,400 220 200 41,220 400 3,440 350 300 900 200 150 100 13,240 7,420 Statement of Profit or Logs for the year ended 80 June 2020 Marigold Sunflower Bhd Bhd RM000 RM000 Revenue 12,000 8,000 Cost of goods sold (6,000) (4,000) Dividend from Sunflower 128 Operating expenses (1,600) (1,000) Profit before tax 4,528 3,000 Taxation (1,528) (800) Profit after tax 8,000 2,200 Daisy Bhd RM000 6,000 (3,000) (800) 2,200 (500) 1,700 Marigold Bhd Statement of Changes in Equity for the year ended 30 June 2020 Ordinary Preference General share share reserve RM000 RM000 RM000 Balance 1 July 2019 20,000 10,000 1,200 Profit for the year Transfer to general reserve 400 Final Ordinary dividend Balance 30 June 2020 20,000 10,000 1,600 Retained profits RM000 4,800 3,000 (400) (200) 7,200 Sunflower Bhd Statement of Changes in Equity for the year ended 30 June 2020 Ordinary General Retained shares reserve profits RM1000 RM1000 RM 000 Balance 1 July 2019 8,000 400 1,400 Profit for the year 2,200 Interim Ordinary dividend (160) Balance 30 June 2020 8,000 3,440 400 Daisy Bhd Statement of Changes in Equity for the year ended 80 June 2020 Ordinary General Retained shares reserve profits RM1000 RM000 RM000 Balance 1 July 2019 4,000 400 1,000 Profit for the year 1,700 Interim Ordinary dividend (280) Balance 30 June 2020 4,000 2,420 400 Statement of Financial Position as at 30 June 2020 Marigold Sunflower Bhd Bhd RM1000 RM'000 Daisy Bhd RM 000 28,000 8,160 6,180 Property, plant and equipment Investments Inventories Trade receivables Bill receivables Cash at bank 800 200 8,954 1,446 2,000 200 620 41,220 3,000 400 1,000 280 400 18,240 200 40 7,420 8,000 4,000 Ordinary shares 5% Preference shares General reserves Retained profits 8% Debentures Trade payables Bills payables Ordinary dividend payable 400 2,420 20,000 10,000 1,600 7,200 600 1,400 220 200 41,220 400 3,440 350 300 900 200 150 100 13,240 7,420