QUESTION 1:

On 1 January 2019, Media Berhad acquired 80% of Prima Berhad's ordinary share capital. As of 31 December 2019, Media Berhad's receivables balance included an amount due from Prima of RM4,600. The extracted amount from the statements of financial position are as follows:

	Media Berhad	Prima Berhad
Current assets: Receivables	RM50,000	RM30,000
Current liabilities: Payables	RM70,000	RM42,000

(a) Describe the consolidation procedures for the above situation. ( 6markah )

(b) Determine the consolidated amount that should be shown for receivables and payables. ( 14 markah )

( Total / Jumlah: 20 MARKAH )