QUESTION TWO: (30 marks) Belinda Tate is the owner of Party Times (Pty) Ltd. She started off her business with the intention of organizing parties for her children, her family and their friends. Living in a small town, her business grew exponentially as there was a gap in the market for party planners. Belinda Tate now organizes all types of functions ranging from birthdays, weddings, reunions etc. Floral Favours (Pty) Ltd is a small florist also operating in the small town as Party Times (Pty) Ltd. Floral Favours (Pty) Ltd main customer is Party Times (Pty) Ltd and they supply all types of flowers and/or arrangements for the functions. At date of incorporation of Floral Favours (Pty) Ltd (1 July 2012), Party Times (Pty) Ltd acquired 80000 ordinary shares of 50c each in Floral Favours (Pty) Ltd. The following represented the trial balances of Party Times (Pty) Ltd and Floral Favours (Pty) Ltd at 30 June 2014: Additional information: 1. Since Party Times (Pty) Ltd acquired its interest in Floral Favours (Pty) Ltd, Party Times (Pty) Ltd has purchased all its inventories from Floral Favours (Pty) Ltd. Floral Favours (Pty) Ltd sells all its inventories at cost plus 25\%. On 30 June 2013 Party Times (Pty) Ltd had R80 000 inventories on hand. 2 Party Times (Pty) Ltd posted a cheque of R50 000 to Floral Favours (Pty) Ltd on 25 June 2014 . The cheque was misplaced in the post and therefore cancelled. 3. Assume cost price equals fair value. Required: Draft the consolidated balance sheet of Party Times (Pty) Ltd and its subsidiary for the year ended 30 June 2014