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 UchumiMateso Sh'000'Sh'000' Revenue 85,00042,000 Cost of sales 63,00032,000 Gross profit 22,00010,000 Distribution costs 20002000 Administrative expense 60003200 Finanace costs 300400 Profit before tax 13,7004,400 Income tax 4,7001,400 Profit for the year 9,0003,000 Statement of financial position NON-CURRENT ASSETS PPE 30,4509,450 Property 10,1503,150 Investments 12,800 53,40012,600 CURRENT ASSETS Inventory 6,0402,500 Receivables 5,9602,450 Bank 4,0001,650 TOTAL ASSETS 69,40019,200 EQUITY & LIABILITIES Share capital 11,6004,000 Share premium 11,200 Retained earnings 35,4006,500 NON CURRENT LIABILITIES 10% Loan notes 3,0004,000 CURRENT LIABILITIES Trade payables 6,1503,525 Accruals 2,0501,175 TOTAL LIABILITIES 69,40019,200 Additional Information 1. As at the acquisition date fair values of Mateso Ltd assets were equal to their carrying amount except for an item of plant , which had a fair value of sh,1 million in excess of the carrying amount. The plant had a remaining useful life of 5 years as at the acquisition date. 2. Sales of Mateso Ltd to Uchumi Ltd in the post acquisition period amounted to sh.4 million. Matusi ltd made mark up of 40%. Sh,1.4 million of these goods at cost were still included in inventory by closing date. Mateso Ltd trade receivables include sh,400,000 due from Uchumi Ltd which did not agree with the corresponding payables. This was due to cash paid from Uchumi Ltd not yet received by Mateso ltd. 3. Uchumi Ltd has A policy of accounting for any non controlling interest at fair value. Fair value of goodwill attributable to non controlling interest in Mateso ltd was sh.1.2 million. Required: Consolidated financial statements