QUESTION $2$

$20$ MARKS

On $1$ January $2020,$ Sethu Limited acquired $25\%$ of the issued ordinary shares of Bish Limited for R$137500.$ The acquisition of the shares enabled Sethu Limited to exercise significant influence over the policy$-$making decisions of Bish Limited. At the date of acquisition, the extracts from the statement of financial position of Bish Limited were as follows:

$\backslash$table$[[$BISH LIMITED$],[$STATEMENT OF FINANCIAL POSITION AS AT $1$ JANUARY $2020,],[$ASSETS$,$Rand$],[$Current assets,$500000],[$Total assets,$500000$