Question No. 4 (4+6 = 10) 3. PEM Ltd owns 35% of ALK Ltd. During the current financial year PEM Ltd sold goods to ALK Lid for Tk300,000 on which its gross margin was 40%. ALK Ltd held Tk50,000 of these goods in its inventories at the year end. Show the journal entries necessary to adjust for the PURP in PEM Ltd's consolidated balance sheet and set out the adjustments necessary to PEM Lid's consolidated income statement. b. The following are the statements of changes in equity for Islington and Southwark for the year ended 31 March 2017: Islington (5) Southwark (S) Equity / 210,000 125,000 Comprehensive income 50,000 35,000 Dividends (15,000) (10,000) 245.000 150.000 Islington acquired 75% of Southwark's equity shares on 1 April 2014 when South assets had a fair value of $80,000. No fair value adjustments were required at a 3/5 is Islington's group policy to record NCIs at fair value at acquisition. The NCH Southwark had a fair value of $25,000 at the date of acquisition Requirement: Prepare the consolidated statement of changes in equity for the year ended 31 March 2017