Muto Limited purchased 80% of the ordinary shares of Andel Limited on 1 May 2018. On 30 September 2005, the trial balances of the two companies were as follows Muito Ltd Andei Lid Sh.'000 Cash at bank Receivables Dividend: Interim paid Expenses (including depreciation of fixed assets) Freehold land and buildings (net book value) Investment in Andei Limited Motor vehicles (net book value) 11,500 51.800 3.000 123 800 18.900 82.300 4.500 184,700 25,500 94.260 6.700 375 400 28,900 22.100 -100 813 460 6.700 38.200 586,600 4.800 335 200 21.600 17.600 es Plant and machinery (net book value) Taxation installment tax paid 594 280 Bank overdraft (secured on land and buildings) Payables Sales 17.100 480,000 Share capital: Authorised, issued and fully paid Ordinary shares of Sh.10 60.000 20,000 Retained Profits 77 180 813.460 Additional information: (1) Closing inventory was Sh.24,200,000 in Mtito and Sh.19,200,000 in Andei (i) The turnover and expenses in Andei accrued evenly over the year, the rate of gross profit was constant throughout the year (ii) Mtito paid its interim dividend on 15th May 2018; Andei paid its interim dividend on 31 March 2018. Mtito has not yet accounted for any dividend receivable from Andei. (iv) Between 1 May 2018 and 30 September 2018, Mtito sold goods to Andei. These goods had cost Mtito sh.30 million. Mtito earned a gross profit of 375% on the selling price of these goods. On 30 September 2018, one sixth of these goods were included in the stock of Andei. Included in the debtors figure for Mtito was Sh. 7,200,000 from Andei: Mtito's account in Andei's books agreed with this figure (v) The self-assessment tax returns of Mtito and Andei show the corporation tax charge for the year at Sh.10,020,000 and Sh.7,980,000 respectively: both companies have paid installment tax on the preceding year basis (vi) The directors have proposed that Mtito should pay a final dividend of Sh.6 million and Andei Sh.3 million. (vil) Goodwill arising on the acquisition of Andei is considered to be impaired at sh.1million. Required A consolidated income statement for the year ended 30 September 2018 (including reconcliati of the retained profit for the year and carried forward) and a consolidated balance sheet as at 30 September 2018