On 1 January 20X8, Red Berhad acquired 80% of Velvet Berhad ordinary share capital. As at 31December 20X8, as a result of trading during the year, Red Berhad receivables balance included an amount due from Velvet of RM4,600. The extracted amount from their respective statements of financial position showed:

Current assets: Receivables

Red Berhad:RM50,000

Velvet Berhad:RM30,000

Current liabilities: Payables

Red Berhad:RM70,000

Velvet Berhad:RM42,000

(a)Describe the consolidation procedures for above situation.

(b)Determine the consolidated amount that should be shown for receivables and payables.