On $1$ January $2019$ Precious Ltd purchased $75\%$ of the shares in Sam Ltd for R$112500.$ At that stage, Sam Ltd$.\text{'}$s equity consisted of the following:

Share capital

R$125000$

Retained earnings

R$25000$

The abridged statements of profit or loss and other comprehensive income of the two entities for the reporting period ended $31$ December $2023$ are as follows: An extract from the abridged statements of changes in equity of the two entities for the reporting period

ended $31$ December $2023$ is as follows:

On $31$ December $2023,$ the following items, inter alia, appeared in the two entities' statements of financial

position: Additional information

$1$ Included in Sam Ltd$.\text{'}$s plant is a machine sold on $1$ January $2020$ by Precious Ltd to Sam Ltd$.$ Precious Ltd realised a gain of R$25000$ on this transaction

and the machine was classified as equipment in Precious Ltd$.\text{'}$s records. Plant and equipment are depreciated at $10\%$ per year on a straight$-$line basis.

$2$ Since May $2019,$ Precious Ltd has purchased all its inventories from Sam Ltd at the normal selling prices, determined by Sam Ltd at cost price plus $25\%.$

Total sales from Sam Ltd to Precious Ltd for the reporting period ended $31$ December $2023$ amounted to R$205000.$

$3$ On $31$ December $2022,$ the inventories on hand of Precious Ltd were R$37500($valued at cost price for Precious Ltd$).$

$4$ Precious Ltd recognised the equity investment in Sam Ltd in its separate financial records using the cost price method.

$5$ Precious Ltd elected to measure the non$-$controlling interests in acquiree at their proportionate share of the acquiree's identifiable net assets at the

acquisition date.

$6$ Ignore the tax implications.

Tasks:

Prepare the abridged consolidated statement of profit or loss and other comprehensive income and consolidated statement

of changes in equity of the Precious Ltd Group for the reporting period ended $31$ December $2023.$On $1$ January $2019$ Precious Ltd purchased $75\%$ of the shares in Sam Ltd for R$112500.$ At that stage, Sam Ltd$.\text{'}$s equity consisted of the following:

Share capital

R$125000$

Retained earnings

R$25000$

The abridged statements of profit or loss and other comprehensive income of the two entities for the reporting period ended $31$ December $2023$ are as follows:An extract from the abridged statements of changes in equity of the two entities for the reporting period

ended $31$ December $2023$ is as follows:

On $31$ December $2023,$ the following items, inter alia, appeared in the two entities' statements of financial

position:Additional information

$1$ Included in Sam Ltd$.\text{'}$s plant is a machine sold on $1$ January $2020$ by Precious Ltd to Sam Ltd$.$ Precious Ltd realised a gain of R$25000$ on this transaction

and the machine was classified as equipment in Precious Ltd$.\text{'}$s records. Plant and equipment are depreciated at $10\%$ per year on a straight$-$line basis.

$2$ Since May $2019,$ Precious Ltd has purchased all its inventories from Sam Ltd at the normal selling prices, determined by Sam Ltd at cost price plus $25\%.$

Total sales from Sam Ltd to Precious Ltd for the reporting period ended $31$ December $2023$ amounted to R$205000.$

$3$ On $31$ December $2022,$ the inventories on hand of Precious Ltd were R$37500($valued at cost price for Precious Ltd$).$

$4$ Precious Ltd recognised the equity investment in Sam Ltd in its separate financial records using the cost price method.

$5$ Precious Ltd elected to measure the non$-$controlling interests in acquiree at their proportionate share of the acquiree's identifiable net assets at the

acquisition date.

$6$ Ignore the tax implications.

Tasks:

Prepare the abridged consolidated statement of profit or loss and other comprehensive income and consolidated statement

of changes in equity of the Precious Ltd Group for the reporting period ended $31$ December $2023.$