Seline is the owner of Jolly 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. Seline now organizes all types of functions ranging from birthdays, weddings, reunions etc.

Western Favours (Pty) Ltd is a small florist also operating in the small town as Jolly Times (Pty) Ltd. Western Favours (Pty) Ltd main customer is Jolly Times (Pty) Ltd and they supply all types of flowers and/or arrangements for the functions.

At date of incorporation of Western Favours (Pty) Ltd (1 July 2012), Jolly Times (Pty) Ltd acquired 80 000 ordinary shares of 50c each in Western Favours (Pty) Ltd.

The following represented the trial balances of Jolly Times (Pty) Ltd and Western Favours (Pty) Ltd at 30 June 2014:

Jolly Times Western Favours

R R

Credits

Ordinary shares of 50c each 200 000 50 000

Retained earnings 70 000 55 000

Trade and other payables 90 000 50 000

Accumulated depreciation 86 000 64 000

Non- distributable reserve

- Revaluation of land and buildings 50 000 24 000

Interest bearing borrowing Jolly Times - 100 000

Bank overdraft-Netbank 100 000 -

596 000 343 000

Debits

Land and buildings at valuation 200 000 67 000

Plant and equipment at cost price 110 000 170 000

Trade and other receivables 20 000 26 000

Bank Strike Bank - 46 000

Inventories 68 000 34 000

Loan Western Favours 150 000 -

Investment in Western Favours 48 000 -

596 000 343 000

Additional information:

1. Since Jolly Times (Pty) Ltd acquired its interest in Western Favours (Pty) Ltd, Jolly Times (Pty) Ltd has purchased all its inventories from Western Favours (Pty) Ltd. Western Favours (Pty) Ltd sells all its inventories at cost plus 25%. On 30 June 2013 Jolly Times (Pty) Ltd had R80 000 inventories on hand.

2 Jolly Times (Pty) Ltd posted a cheque of R50 000 to Western 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 Jolly Times (Pty) Ltd and its subsidiary for the year ended 30 June 2014.