QUESTION $1(30$ Marks$)$

Dairy Ltd acquired $224,000$ ordinary shares in Milky Ltd on $30$ June $2019.$ The following represents the abridged

statements of the Financial Position of the two companies on that date.

Assets Dairy Ltd Zaire Ltd

Non$-$current $340000154000$

Property, plant, and equipment $137500154000$

Investment in Milky Ltd at fair value $180000$

Loan $-$ Milky Ltd $22500$

Current assets $195000252000$

Inventory $82500189000$

Trade and other receivables $112500$

Cash and cash equivalents $63000$

Total Assets $535000406000$

Equity and Liabilities

Total Equity $431250\mathrm{.}00210000\mathrm{.}00$

Ordinary shares @ $50$c $250000\mathrm{.}00140000\mathrm{.}00$

Retained Earnings $150000\mathrm{.}0056000\mathrm{.}00$

Other components of equity $31250\mathrm{.}0014000\mathrm{.}00$

Non$-$current liabilities $25000\mathrm{.}00120500\mathrm{.}00$

Loan$-$Dairy Ltd $-22500\mathrm{.}00$

Debentures $25000\mathrm{.}0098000\mathrm{.}00$

Current liabilities $78750\mathrm{.}0075500\mathrm{.}00$

Trade and other payables $50000\mathrm{.}0075500\mathrm{.}00$

Bank Overdraft $28750\mathrm{.}00$

Total Equity and Liabilities $535000\mathrm{.}00406000\mathrm{.}00$

Required:

$1\mathrm{.}1.$ Prepare the pro$-$forma consolidation journal entries for the year ended $30$ June $2019.(5$ Marks$)$

$1\mathrm{.}2.$ Prepare the consolidated statement of the financial position of Dairy Ltd group as at $30$ June

$2019.($Comparatives are not required$)$

$(20$ Marks$)$

$1\mathrm{.}3.$ Calculate the amount goodwill$/$gain from bargain purchase if the consideration paid for the acquisition of Milky Ltd was R$156000.$