Question 4 [25 marks Teko Limited acquired 80% of equity of Beko limited on the 01 June 2013. At that time the profits for Beko amounted to P15 000.00. The income statements of the two companies for the year ending 30 June 2020 as presented below: Teko limited Beko limited Sales 225 000 114 000 Cost of sales (90 000) (60 000) Gross profit 135 000 54 000 Dividends from Beko 7200 Administrative expenses (42 000) (24 000) Profit before tax 100 200 30 000 Income tax expense (37 200) (6 000) Profit for the period 63 000 24 000 Dividends paid on 30 June 2020 (18 000) (9000) Retained profit 45 000 15 000 Retained earnings B/F 261 000 51 000 Retained earnings carried 306 000 66 000 forward Notes: Beko limited recorded sales of P15 000.00 to AA limited during the current financial year. Beko limited had acquired these goods from an outside supplier at a cost of P9 000.00. It is estimated that 40% of these goods remained in inventory of Teko limited at 30 June 2020. Required: a) Prepare the group Consolidated Income Statement for the year ending 30 June 2020 in accordance with IASS [9 marks] b) Calculate the movement in retained earnings and group retained earnings [16 marks] Question 4 [25 marks Teko Limited acquired 80% of equity of Beko limited on the 01 June 2013. At that time the profits for Beko amounted to P15 000.00. The income statements of the two companies for the year ending 30 June 2020 as presented below: Teko limited Beko limited Sales 225 000 114 000 Cost of sales (90 000) (60 000) Gross profit 135 000 54 000 Dividends from Beko 7200 Administrative expenses (42 000) (24 000) Profit before tax 100 200 30 000 Income tax expense (37 200) (6 000) Profit for the period 63 000 24 000 Dividends paid on 30 June 2020 (18 000) (9000) Retained profit 45 000 15 000 Retained earnings B/F 261 000 51 000 Retained earnings carried 306 000 66 000 forward Notes: Beko limited recorded sales of P15 000.00 to AA limited during the current financial year. Beko limited had acquired these goods from an outside supplier at a cost of P9 000.00. It is estimated that 40% of these goods remained in inventory of Teko limited at 30 June 2020. Required: a) Prepare the group Consolidated Income Statement for the year ending 30 June 2020 in accordance with IASS [9 marks] b) Calculate the movement in retained earnings and group retained earnings [16 marks]