The following are the abridged trial balances of Haleb Ltd and Serena Ltd for the financial year ended 31 December 2019:

Debits Haleb Ltd Serena Ltd

property, plant and equipment R 1 500 000 R 1 000 000

Investment in serena Ltd R 800 0000 -

Inventory R 600 000 R 200 000

Other assets R 600 000 R 100 000

R 3 500 000 R 1 300 000

Credit

Ordinary share capital R 800 000 R 600 000

Retained earnings 1 jan 2019 R 800 000 R 500 000

Other liabilities R 1 000 000 R 100 000

Profit after tax R 900 000 R 100 000

R 3 500 000 R 1 300 000

Additional information:

1 Haleb Ltd acquired 60% (360 000 ordinary shares) in Serena Ltd during 2016 for R500 000 when Serena Ltd's retained earnings amounted to R300 000. At this date, all of Serena Ltd's identifiable assets and liabilities were considered to be fairly valued.

2 Noncontrolling interest is measured at their share of net identifiable assets.

3 During 2019 Serena Ltd started selling inventory to Haleb Ltd at a markup of 50% on cost.These sales amounted to R500 000 for the year. Haleb Ltd still had inventory purchased from Serena Ltd for R87 000 on hand at 31 December 2019.

4 On 31 December 2019, Haleb Ltd acquired an additional 5% interest (30 000 ordinary shares) in Serena Ltd for R300 000. At this date, all Serena Ltd's identifiable assets and liabilities were still considered to be fairly valued.

5 The SA normal tax rate is 28%. 6 Goodwill is not considered to be impaired at year end.

Q.1.1 Prepare the proforma consolidation journal entries of the Haleb Ltd Group for the financial year ended 31 December 2019.

Q.1.2 Prepare the consolidated statement of changes in equity for the Haleb Ltd Group for the year ended 31 December 2019. Your answer should comply with International financial reporting standards (IFRS).