Aoki Berhad, Bunshin Sdn Bhd and Cici Sdn Bhd are companies in the same group The group closes its accounts on 31 March each year The following statements of financial position for the year 2020 was provided to you You are required to assist your group accountant to prepare the group statement of financial position as at 31 March 2020 You must show all relevant workings Aoki RM000 Bunshin RM000 Cici RM000 Investment in Bunshin 16,000 Land 12,300 8,600 7,800 Building 7,600 3,100 2,260 Plant 3,870 2,365 1,655 Machinery 2,940 1,887 1,388 Equipment 2,166 1,265 987 Current assets Inventories Trade receivables Bills receivables Bank 3,244 3,698 500 5,365 2,344 2,398 1,871 1,765 1894 1,182 Total assets 57,683 23,830 18,931 Ordinary shares 40,000 15,000 12,000 3 Preference shares 2,000 1,500 6 Preference shares 800 Revaluation reserve 3,210 1,500 750 Retained earnings b f Profit for the year 5,639 3,062 992 1,202 1,625 800 4 Debentures 1,000 8 Debentures 625 Trade payables 3,772 2,236 2,031 Bills payables 400 300 Total equities and liabilities 57,683 23,830 18,931 Additional Information Aoki Berhad acquired 80 of ordinary shares in Bunshin Sdn Bhd on 1 April 2018 with consideration transferred of RM16 million Retained earnings of Bunshin on this date was a profit of RM850,000 On the date of acquisition, Bunshins assets recorded the following fair value adjustments Asset Fair value adjustment Useful life Land RM500,000 Building RM200,000 10 years Machinery (RM50,000) 5 years Aoki Berhad also acquired 20 of the ordinary shares in Cici Sdn Bhd on 1 January 2020 with cash consideration of RM3 million paid on the acquisition date Aoki also acquired 40 of the preference shares issued by Cici and 50 of the debentures in Cici on 1 October 2019 Cash payment of RM320,000 and RM312,500 were paid to acquire the preference shares and debentures respectively Bunshin also acquired 40 of the ordinary shares in Cici on 1 January 2020 with the following consideration which were paid on the date of acquisition Cash payment RM1,000,000 10 Debentures RM4,000,000 On this date, plant belonging to Cici was found to have a fair value adjustment of RM100,000 more than the carrying value and machinery belonging to Cici was found to be RM50,000 less than the carrying value The depreciation adjustment required for the plant was RM25,000 more and depreciation adjustment for machinery was RM10,000 lesser for the year ended 31 March 2020 During the year, Aoki sold inventory to Bunshin at cost plus 25 with the invoice value of RM500,000 Bunshin sold 50 of these inventories to Cici and the remaining 50 was sold off to third parties Bunshin made a profit of RM35,000 on the sale of inventory to Cici Cici has not sold any of the inventories Bunshin sold equipment to Cici on 10 January 2020 with the profit of RM20,000 and the estimated useful of this equipment is 4 years Depreciation charged fully in the year of acquisition and none in the year of disposal Aoki purchased all the bills payables (RM400,000) issued by Bunshin on 1 April 2019 but factored 60 of these bills in February 2020 in order to pay bonus to its employees In March 2020, the following dividends and interests were identified but have not yet been recorded Accrual Receivable Aoki Ordinary Shares Preference Shares 250 60 Bunshin Ordinary Shares OS dividend income Aoki (80 ) Preference Shares Debentures 150 45 40 120 Cici Ordinary shares OS dividend income Aoki (20 ) OS dividend income Bunshin (40 ) Preference shares PS dividend income Aoki (40 ) Debentures Debenture interest income Aoki (50 ) 80 12 12 5 16 32 4 8 6 25 Required Prepare the Group Statement of Financial Position as at 31 March 2020 for Aoki group Note Show ALL relevant workings (35 5 marks)

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Aoki Berhad, Bunshin Sdn Bhd and Cici Sdn Bhd are companies in the same group. The group closes its accounts on 31 March each year.

The following statements of financial position for the year 2020 was provided to you. You are required to assist your group accountant to prepare the group statement of financial position as at 31 March 2020. You must show all relevant workings.

	Aoki RM000	Bunshin RM000	Cici RM000
Investment in Bunshin	16,000
Land	12,300	8,600	7,800
Building	7,600	3,100	2,260
Plant	3,870	2,365	1,655
Machinery	2,940	1,887	1,388
Equipment	2,166	1,265	987
Current assets: Inventories Trade receivables Bills receivables Bank	3,244 3,698 500 5,365	2,344 2,398 - 1,871	1,765 1894 - 1,182
Total assets	57,683	23,830	18,931

Ordinary shares	40,000	15,000	12,000
3% Preference shares	2,000	1,500	-
6% Preference shares			800
Revaluation reserve	3,210	1,500	750
Retained earnings b/f Profit for the year	5,639 3,062	992 1,202	1,625 800
4% Debentures	-	1,000
8% Debentures			625
Trade payables	3,772	2,236	2,031
Bills payables	-	400	300
Total equities and liabilities	57,683	23,830	18,931

Additional Information

Aoki Berhad acquired 80% of ordinary shares in Bunshin Sdn Bhd on 1 April 2018 with consideration transferred of RM16 million. Retained earnings of Bunshin on this date was a profit of RM850,000.

On the date of acquisition, Bunshins assets recorded the following fair value adjustments:

Asset Fair value adjustment Useful life

Land RM500,000

Building RM200,000 10 years

Machinery (RM50,000) 5 years

Aoki Berhad also acquired 20% of the ordinary shares in Cici Sdn Bhd on 1 January 2020 with cash consideration of RM3 million paid on the acquisition date. Aoki also acquired 40% of the preference shares issued by Cici and 50% of the debentures in Cici on 1 October 2019. Cash payment of RM320,000 and RM312,500 were paid to acquire the preference shares and debentures respectively.

Bunshin also acquired 40% of the ordinary shares in Cici on 1 January 2020 with the following consideration which were paid on the date of acquisition:

Cash payment RM1,000,000

10% Debentures RM4,000,000

On this date, plant belonging to Cici was found to have a fair value adjustment of RM100,000 more than the carrying value and machinery belonging to Cici was found to be RM50,000 less than the carrying value. The depreciation adjustment required for the plant was RM25,000 more and depreciation adjustment for machinery was RM10,000 lesser for the year ended 31 March 2020.

During the year, Aoki sold inventory to Bunshin at cost plus 25% with the invoice value of RM500,000. Bunshin sold 50% of these inventories to Cici and the remaining 50% was sold off to third parties. Bunshin made a profit of RM35,000 on the sale of inventory to Cici. Cici has not sold any of the inventories.

Bunshin sold equipment to Cici on 10 January 2020 with the profit of RM20,000 and the estimated useful of this equipment is 4 years. Depreciation charged fully in the year of acquisition and none in the year of disposal.

Aoki purchased all the bills payables (RM400,000) issued by Bunshin on 1 April 2019 but factored 60% of these bills in February 2020 in order to pay bonus to its employees.