Instructions: All answers must be typed in and all workings must be shown.

QUESTION FIVE The following represents the financial statements of Bob Ltd and Marley Ltd Statement of Financial Position as at 31 December 2020 Bob Ltd Marley Ltd ASSETS Non-current assets Plant and Equipment 320 000 300 000 Investment - 120 000 shares 250 000 50 000 180 000 Fixed deposit Current assets Trade and other receivables 45 000 15 000 Bank 60 000 20 000 TOTAL ASSETS 725 000 515 000 EQUITY AND LIABILITIES EQUITY Share capital - ordinary shares @ R1.50 360 000 300 000 Retained earnings 210 000 90 000 LIABILITIES 150 000 100 000 Noncurrent liabilities Long term loan Current liabilities Trade and other payables TOTAL EQUITY AND LIABILTIES 5 000 25 000 725 000 515 000 Additional Information 1. Bob Ltd acquired its interest in Marley Ltd on 01 January 2019 when Marley Ltd's retained earnings was R40 000. 2. At the date of acquisition assume the carrying amounts of all assets and liabilities of Marley Ltd to be equal to the fair value thereof. Statement of Comprehensive Income for the year ended 31 December 2020 Bob Ltd Marley Ltd Profit before taxation 250 000 75 000 Taxation (50 000) (15 000) Profit 200 000 60 000 Required: Prepare the consolidated financial statements for 31 December 2020