ILLUSTRATION ONE:

The following balance sheet relates to Bahari and Jikaze as at 31/12/2014

DETAILS JIKAZEMILLIONS BAHARI MILLIONS

Noncurrent Assets 480320

Investment in Bahari 180

Stock 160 120

Debtors 80 60

Bank 60 40

960 540

Financed by:

Sharecapital 200 100

Revenue Reserves 180 140

Revaluation Reserves 100 50

Loan stock 300 100

Accounts payables 180 150

960540

ADDITIONAL INFORMATION

1.Jikaze acquired 80% of Bahari on 1/1/2012 when the retained earnings of Bahari stood at 25M.Any goodwill arising on acquisition would be written off over a period of 5 years.

2.In the 2014,Bahari sold goods worth 50M to Jikaze at a markup of 25%.1/3 of these goods remained in stock.

3.Jikaze and Bahari revalued their noncurrent assets on 1/1/2012 by 100M and 50M respectively.This has already been accounted for.

REQUIRED:

Prepare the consolidated statement of financial position as at 31/12/2014