Question Four (25 marks) Kopano (Pty) Ltd acquired 60% of the issued share capital of Sechaba Ltd on 1 November 2019. At that date Sechaba Ltd had share capital of P8,000,000 and retained earnings of P32,550,000. The summarised statements of financial position of Kopano (Pty) Ltd and Sechaba Ltd as at 31 October 2020 are set out below. Statements of financial position as at 31 October 2020 Non-current assets Property, plant and equipment Investment in Sechaba Ltd. Current assets Inventory Accounts receivable Cash at bank and in hand. Total assets Equity and liabilities Equity Share capital Retained earnings Non-current liabilities Long term loan Current liabilities Trade accounts payable other payables and tax Total liabilities Total equity and liabilities Additional information: Kopano (Pty) Ltd P'000 assets. 117,801 78,301 39,500 34,753 15,063 9,000 10,690 152,554 96,069 50,000 46,069 40,000 40,000 16,485 14,230 2,255 56.485 152.554 Sechaba Ltd P'000 45,523 45,523 12,614 8,520 3,400 694 58,137 45,430 8,000 37,430 6,000 6,000 6,707 5,707 1,000 12.707 58.137 Page 6 of 7 1. On 10 October 2020 Sechaba Ltd sold goods which had cost P200,000 to Kopano (Pty) Ltd for P350,000. None of these goods remained in the inventories of Kopano (Pty) Ltd at the year end. 2. At 31 October 2020 Kopano (Pty) Ltd had not yet paid Sechaba Ltd for these goods. The outstanding balance of P350,000 is included in the current assets of Sechaba Ltd and the current liabilities of Kopano (Pty) Ltd. 3. Goodwill relating to the purchase of Sechaba Ltd was reviewed on 31 October 2020 and was found not to be impaired. 4. Non-controlling interest is measured as the proportionate share of the fair value of Sechaba Ltd's net Required. Prepare the consolidated statement of financial position of Kopano (Pty) Ltd and its subsidiary as at 31 October 2020. [25 marks]