On 1 January 2020, Sonix Berhad acquired 15,000 of Jessy Berhads equity shares via an immediate share exchange of 2 shares in Sonix Berhad for 5 shares in Jessy Berhad. In addition to the share exchange, Sonix Berhad made cash payment of RM1.20 per acquired shares. Sonix Berhad has not recorded any of the considerations for Jessy Berhad in its financial statements. The fair value of Sonix Berhad shares on 1 January 2020 were RM4.00 per share. Sonix Berhads policy is to value the non-controlling interest at fair value of the subsidiarys net asset. The summarised statements of financial position of the two companies as at 31 December 2020 are as follows:

Additional information:

(1) The total number of ordinary shares of Jessy Berhad was 20,000 and its retained profits at the date of acquisition were RM18,000.

(2) The fair value of Jessys net assets was equal to their carrying amounts at the date of acquisition except for an item of plant. The plant had a fair value of RM2,000 below its carrying value and had 2 years of remaining useful life. All non-current assets are depreciated using straight-line method.

(3) Following an impairment review, consolidated goodwill is to be written down by onethird as at 31 December 2020.

(4) Sonix Berhad had a trade receivable balance of RM3,400 due from Jessy Berhad as at 31 December 2020. Jessy Berhad had remitted RM1,800 on 25 December 2020 which Sonix Berhad received on 2 January 2021.

REQUIRED:

(a) Prepare the journal entry in the books of Sonix Berhad to record the acquisition of Jessy Berhad. (3 marks)

(b) Prepare a table showing the calculations of Goodwill on Consolidation, Noncontrolling Interest and Group Retained Profits for Sonix Group. (11 marks)

(c) Show the journal entry to record item (3) and (4) above. (5 marks)

(d) Prepare the Consolidated Statement of Financial Position as at 31 December 2020 for Sonix Group (Working table is not required). (11 marks)

Jessy RM 34,600 Statements of Financial Position as at 31 December 2020 Sonix Non-current Assets: RM Property, plant and equipment (NBV) 66,000 Current Assets: Inventories 17,500 Trade receivables 14,300 Cash and bank 2,000 Total assets 99,800 15,400 10,500 1,800 62,300 5 UBAF3013 ADVANCED ACCOUNTING PRACTICE MID-TERM TEST MAY2021 TRIMESTER Equities: Ordinary shares Retained profits Sonix RM 24,000 50,200 74,200 Jessy RM 20,000 24,000 44,000 Current Liabilities: Trade payables Total equities and liabilities 25,600 99.800 18,300 62.300 Jessy RM 34,600 Statements of Financial Position as at 31 December 2020 Sonix Non-current Assets: RM Property, plant and equipment (NBV) 66,000 Current Assets: Inventories 17,500 Trade receivables 14,300 Cash and bank 2,000 Total assets 99,800 15,400 10,500 1,800 62,300 5 UBAF3013 ADVANCED ACCOUNTING PRACTICE MID-TERM TEST MAY2021 TRIMESTER Equities: Ordinary shares Retained profits Sonix RM 24,000 50,200 74,200 Jessy RM 20,000 24,000 44,000 Current Liabilities: Trade payables Total equities and liabilities 25,600 99.800 18,300 62.300