Given below are the statements of financial position of Heep Bhd and Seep Bhd as at31 December x1.

Heep Bhd

Seep Bhd

RM'000

RM'000

Ordinary share capital

300

200

Retained profit

40

40

Liabilities

50

50

390

290

Investment in ordinary shares of Seep at cost

250

-

Sundry net assets

140

290

390

290

Heep purchased 150,000 of the 200,000 issued ordinary shares of Seep on31 Decemberx1. Non-controlling interest is measured based on proportion of the net assets of the investee.

Required:

i.Show the initial journal entries to prepare the consolidated financial statements.

ii. Prepare the consolidated statement of financial position of Heep Group as at31 Decemberx1.