Intermediate Accounting Question to be answered as per information provided below.

The draft summarised financial statements for two entities as at 31 March 2020 are given below:

Summarised statement of comprehensive income for the year ended 31 March 2020

PebbleSand

$'000$'000

Revenue4,1001,350

Cost of sales(1,750)(790)

2,350560

Other income - dividends received105-

Expenses(1,190)(250)

1,265310

Finance cost(36)(20)

1,229290

Taxation(240)(100)

Profit for the year989190

Summarised statement of financial position at 31 March 2020

PebbleSand

$'000$'000

Non-current assets

Property, plant and equipment5,1001,850

Investments2,500-

7,6001,850

Current assets

Sundry2,8601,450

Intercompany receivable - Sand Ltd120-

2,9801,450

Total assets 10,5803,300

Equity and reserves

Equity shares of $1 each5,0001,000

Retained earnings3,4701,370

8,4702,370

Current liabilities

Trade payables2,110840

Intercompany payable - Pebble Ltd-90

2,110930

Total equity and liabilities 10,5803,300

Relevant Information:

i)Pebble Ltd holds shares in Sand Ltd. On 1 April 2018 Pebble Ltd purchased 75% of the shares of Sand Ltd at $2.80 per share. The fair value of Sand Ltd tangible assets was $440,000 more than the book value. The excess in fair value over book value is attributed to the plant of Sand Ltd.

ii)Retained earnings of Sand Ltd at the date of acquisition was $850,000.

iii)The group's policy is to value non-controlling interests at their fair values. The directors of Pebble Ltd assessed the fair value of the non-controlling interest in Sand Ltd at the date of acquisition to be$700,000

vi)Depreciation is to be provided for at 25% per annum on the straight line basis for all property, plant and equipment

iv)Sand Ltd paid an interim dividend on 11 August 2019 of $140,000.

v)Sand Ltd sent a cheque for $30,000 to Pebble Ltd on 31 March 2020 for its payable balance.

vii)Intercompany sales from Pebble to Sand, was $200,000 for the year. None of these stocks were held by

Sand Ltd at 31 March 2020.

viii)Ignore the impairment of goodwill.

Required:

a)Prepare the consolidated statement of comprehensive income for the Pebble Group for the year ended 31 March 2020

b)Prepare the consolidated statement of financial position for the Pebble Group as at 31 March 2020

All workings must be clearly shown.