Dooka Bhd is a new company producing consumer products. The company is located in an industrial area in Klang Selangor. On 31 December 2020, Sooka Bhd acquired 14,000,000 units of the ordinary share capital in Dooka Bhd. The total ordinary shares in Dooka Bhd is 20,000,000 units. In exchange for the shares in Dooka Bhd, Sooka Bhd : i. issued 8 million of its ordinary shares valued at RM4.00 each ii. paid RM5,000,000 cash to the former shareholders of Dooka Bhd iii. agreed to assume a liability to pay RM3,000,000 as compensation to a supplier of Dooka Bhd iv. paid RM500,000 professional fees to the accountants and RM600,000 to the lawyers for their services rendered in relation to the acquisition Below are the Statement of Financial Positions of Sooka Bhd and Dooka Bhd before the acquisition took place. Statement of Financial Position as at 31 December 2020 Sooka Bhd RM'000 Dooka Bhd RM'000 24,000 EQUITY AND LIABILITIES Share capital Revaluation reserves Retained profits 48,000 10,000 20,000 16,000 LIABILITIES Non-current liabilities Account payables Deferred taxation TOTAL 14,000 15,000 5,000 112,000 10,000 20,000 70,000 NON CURRENT ASSETS Property, plant and equipment Land Other fixed assets, at NBV 16,000 10,000 50,000 8,000 8,000 23,000 CURRENT ASSETS Inventories Account receivables Cash and bank balances TOTAL 4,000 15,000 17,000 112,000 3,000 14,000 14,000 70,000 At the acquisition date, the freehold land and inventories of Dooka Bhd had a fair value of RM13,500,000 and RM2,000,000 respectively. No adjustment had been made for this value. In addition, Sooka Bhd and Dooka Bhd agreed that Dooka Bhd had a brand name with a fair value of RM600,000 and licences of RM150,000, which was not recognized in its book. Dooka Bhd has disclosed in its notes to financial statement a contingent liability involving a pending lawsuit in which the lawyer advised that there was a high probability that a company would lose the case and would then have to pay RM200,000. It is the policy of the group to measure non-controlling interest at the acquisition-date's fair value. On the acquisition date, the shares of Dooka Bhd are quoted on the stock exchange at RM3.00 per share. Required: a) Prepare the journal entries for consolidation for Sooka Bhd Group. b) Prepare the Consolidated Statement of Financial Position for Sooka Bhd and its subsidiary as at 31 December 2020. Dooka Bhd is a new company producing consumer products. The company is located in an industrial area in Klang Selangor. On 31 December 2020, Sooka Bhd acquired 14,000,000 units of the ordinary share capital in Dooka Bhd. The total ordinary shares in Dooka Bhd is 20,000,000 units. In exchange for the shares in Dooka Bhd, Sooka Bhd : i. issued 8 million of its ordinary shares valued at RM4.00 each ii. paid RM5,000,000 cash to the former shareholders of Dooka Bhd iii. agreed to assume a liability to pay RM3,000,000 as compensation to a supplier of Dooka Bhd iv. paid RM500,000 professional fees to the accountants and RM600,000 to the lawyers for their services rendered in relation to the acquisition Below are the Statement of Financial Positions of Sooka Bhd and Dooka Bhd before the acquisition took place. Statement of Financial Position as at 31 December 2020 Sooka Bhd RM'000 Dooka Bhd RM'000 24,000 EQUITY AND LIABILITIES Share capital Revaluation reserves Retained profits 48,000 10,000 20,000 16,000 LIABILITIES Non-current liabilities Account payables Deferred taxation TOTAL 14,000 15,000 5,000 112,000 10,000 20,000 70,000 NON CURRENT ASSETS Property, plant and equipment Land Other fixed assets, at NBV 16,000 10,000 50,000 8,000 8,000 23,000 CURRENT ASSETS Inventories Account receivables Cash and bank balances TOTAL 4,000 15,000 17,000 112,000 3,000 14,000 14,000 70,000 At the acquisition date, the freehold land and inventories of Dooka Bhd had a fair value of RM13,500,000 and RM2,000,000 respectively. No adjustment had been made for this value. In addition, Sooka Bhd and Dooka Bhd agreed that Dooka Bhd had a brand name with a fair value of RM600,000 and licences of RM150,000, which was not recognized in its book. Dooka Bhd has disclosed in its notes to financial statement a contingent liability involving a pending lawsuit in which the lawyer advised that there was a high probability that a company would lose the case and would then have to pay RM200,000. It is the policy of the group to measure non-controlling interest at the acquisition-date's fair value. On the acquisition date, the shares of Dooka Bhd are quoted on the stock exchange at RM3.00 per share. Required: a) Prepare the journal entries for consolidation for Sooka Bhd Group. b) Prepare the Consolidated Statement of Financial Position for Sooka Bhd and its subsidiary as at 31 December 2020