QUESTION $1[60$marks$]$

The following are abridged trial balances as at $31$ December $2023.$

Paris

Ltd

Rand

Padayachee

Ltd

Chloe

Ltd

Credits

Rand Rand

Share capital $100000$ ordinary shares

$400000$

Share capital $80000$ ordinary shares

$$

$$

$$

Share capital $30000$ ordinary shares

$320000$

$$

$$

Retained earnings $$ beginning of year

$240000$

$800000$

Profit before tax

$600000$

$1380000$

$440000$

$2580000$

$880000$

$380000$

Debits

$18000001060000$

Property, plant and equipment

Investment in Chloe Limited at fair value

$10660001136000546000$

$440000$

Investment in Paris Limited at fair value

$$

$400000$

$$

Trade and other receivables

$$

$140000$

$$

Income tax expense

$240000$

$414000$

$260000$

Dividends paid

$264000$

$120000$

$114000$

$2580000$

$160000$

$140000$

Additional information

$4500001060000$

$(1)$ Padayachee Limited purchased $60000$ shares in Chloe Limited on $1$ January $2023$

when Chloe Limited's retained earnings amounted to R$240000.$

$(2)$ On $1$ January $2013$ Padayachee Limited acquired $27000$ shares in Paris Limited,

when the retained earnings of Paris Limited amounted to R$160000.$

$(3)$ On both acquisition dates the fair values of the identifiable assets, liabilities and

contingent liabilities were considered to be equal to the carrying amounts of these

items and Each share carries one vote.

$(4)$ The group uses the partial goodwill method to recognise goodwill. $($The non

controlling interest is measured at its proportionate interest in the net identifiable

assets of the acquirer.$)$ Goodwill was not considered to be impaired at year end.

$(5)$ The fair value of available$-$for$-$sale financial assets is equal to the cost price thereof.

$6$

All fair value adjustments are recognised in equity.

Required

$2($a$)$ Calculate the percentage interest on acquistion of Chloe Limited and Paris Limited.

Also indicate the group structure in form of a diagram.

$2($b$)$ Prepare analysis of owner$$s equity of Chloe Limited and Paris Ltd

$[5]$

$[20]$

$2($c$)$Prepare Statement of Comprehensive Income for the year ended $31$ December

$2023$ for Padayachee Limited Group.

$[10]$

$2($d$)$Prepare Statement of changes in equity as at $31$ December $2023$ for Padayachee

Limited Group.

$[7]$

$2($e$)$Prepare Statement of Financial Position as at $31$ December $2023$ for Padayachee

Limited Group