On 1st October 2020 Uchumi Ltd acquired 60% of the equity share capital of Mateso Ltd at cost of Sh.12,800. On this date the retained earnings of Mateso Ltd were Sh.5,000. Below are the financial statements for the two companies for the year ended 31st March 2021 Income statement for the year ended 31st March 2021 Revenue Cost of sales Gross profit Distribution costs Administrative expense Finanace costs Profit before tax Income tax Profit for the year Statement of financial position NON-CURRENT ASSETS PPE Property Investments CURRENT ASSETS Inventory Receivables Bank TOTAL ASSETS EQUITY \& LIABILITIES Share capital Share premium Retained earnings NON CURRENT LIABILITIES 10% Loan notes CURRENT LIABILITIES Trade payables Accruals TOTAL LIABILITIES \begin{tabular}{ll} Uchu & Mates \\ mi & \multicolumn{1}{l}{0} \\ Sh'000 & \multicolumn{1}{l}{ Sh'000 } \\ 1 & \multicolumn{1}{l}{} \\ 85,000 & 42,000 \\ 63,000 & 32,000 \\ \hline 22,000 & 10,000 \\ 2000 & 2000 \\ 6000 & 3200 \\ 300 & 400 \\ \hline 13,700 & 4,400 \\ 4,700 & 1,400 \\ \hline 9,000 & 3,000 \\ \hline \hline \end{tabular} \begin{tabular}{rr} 30,450 & 9,450 \\ 10,150 & 3,150 \\ 12,800 & \\ \hline 53,400 & 12,600 \\ & \\ 6,040 & 2,500 \\ 5,960 & 2,450 \\ 4,000 & 1,650 \\ \hline 69,400 & 19,200 \\ \hline \hline \end{tabular} \begin{tabular}{rr} 11,600 & 4,000 \\ 11,200 & \\ 35,400 & 6,500 \\ 3,000 & 4,000 \\ & \\ 6,150 & 3,525 \\ 2,050 & 1,175 \\ \hline 69,400 & 19,200 \\ \hline \end{tabular} Additional Information On 1st October 2020 Uchumi Ltd acquired 60% of the equity share capital of Mateso Ltd at cost of Sh.12,800. On this date the retained earnings of Mateso Ltd were Sh.5,000. Below are the financial statements for the two companies for the year ended 31st March 2021 Income statement for the year ended 31st March 2021 Revenue Cost of sales Gross profit Distribution costs Administrative expense Finanace costs Profit before tax Income tax Profit for the year Statement of financial position NON-CURRENT ASSETS PPE Property Investments CURRENT ASSETS Inventory Receivables Bank TOTAL ASSETS EQUITY \& LIABILITIES Share capital Share premium Retained earnings NON CURRENT LIABILITIES 10% Loan notes CURRENT LIABILITIES Trade payables Accruals TOTAL LIABILITIES \begin{tabular}{ll} Uchu & Mates \\ mi & \multicolumn{1}{l}{0} \\ Sh'000 & \multicolumn{1}{l}{ Sh'000 } \\ 1 & \multicolumn{1}{l}{} \\ 85,000 & 42,000 \\ 63,000 & 32,000 \\ \hline 22,000 & 10,000 \\ 2000 & 2000 \\ 6000 & 3200 \\ 300 & 400 \\ \hline 13,700 & 4,400 \\ 4,700 & 1,400 \\ \hline 9,000 & 3,000 \\ \hline \hline \end{tabular} \begin{tabular}{rr} 30,450 & 9,450 \\ 10,150 & 3,150 \\ 12,800 & \\ \hline 53,400 & 12,600 \\ & \\ 6,040 & 2,500 \\ 5,960 & 2,450 \\ 4,000 & 1,650 \\ \hline 69,400 & 19,200 \\ \hline \hline \end{tabular} \begin{tabular}{rr} 11,600 & 4,000 \\ 11,200 & \\ 35,400 & 6,500 \\ 3,000 & 4,000 \\ & \\ 6,150 & 3,525 \\ 2,050 & 1,175 \\ \hline 69,400 & 19,200 \\ \hline \end{tabular} Additional Information