The following are the condensed statements of financial position of P Ltd and subsidiary at 30 June 2021, the date on which P Ltd acquired the interest in S Ltd: STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 P Ltd S Ltd ASSETS Plant and equipment 2 075 000 1 000 000 Investment in S Ltd: 37 500 ordinary shares at cost price 420 000 250 10% preference shares at cost 25 000 Inventories 120 000 400 000 Bank 360 000 Total Assets 3 000 000 1 400 000 2 000 000 EQUITY AND LIABILITIES Ordinary share capital (P Ltd: 100 000/S Ltd: 50 000) Preference share capital (500 shares) Retained earnings Long-term borrowings Trade payables Bank overdraft 655 000 400 000 50 000 440 000 200 000 260 000 50 000 1 400 000 345 000 3 000 000 EXTRACT FROM THE STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021 P Ltd S Ltd 1 540 000 Revenue 1 250 000 1605 Anny TOTAL COMPREHENSIVE INCOME FOR THE YEAR 220 000 EXTRACT FROM THE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 Retained earnings P Ltd S Ltd 475 000 300 000 Balance at 1 July 2020 Changes in equity for 2021 Total comprehensive income for the year: Profit for the year Dividend paid - Ordinary dividend Preference dividend Balance at 30 June 2021 220 000 (40 000) 175 000 (30 000) (5000) 440 000 655 000 Page 6 of 7 FAO (2021): ACCOUNTANCY IIB QUESTION 2 (CONTINUED) ADDITIONAL INFORMATION: 1. P Ltd acquired 37 500 ordinary shares at R420 000 and 250 10% preference shares at na wc 01 2000 QUESTION 2 (CONTINUED) ADDITIONAL INFORMATION 1 Pild acquired 37 00 ordinary shares at 1420 000 and 260 10% preference shares at 1026 000 in Sion 1 July 2010 Althus date, the retained camnings was R120 000 2 Al the acquisition date the directors were of the opinion that the fair value of the non- controlling interests was worth R160 000 The preference shareholders have a preferential nght to their dividend payment and will Foceive a proportionate share of the net assols available for distribution upon liquidation of the acquiree The fair value of the preference shares al acquisition date is R25 000 4 Pild started purchasing all of its inventones from Sid on 1 July 2019 At 30 June 2020 the dosing inventories of P Lid was R100 000 S Lid wells the inventories to P Ltd at cost price. 26% Intragroup sales for the reporting period ending 30 June 2021 was R$20 000 On 1 July 2020 P Ltd sold machinery with a cost of RBO 000 to S Ltd at R120 000. Both companies depreciate machinery 5% per year All preference dividends have been declared and paid 7 Tax implications may be ignored REQUIRED 21 Prepare the pro forma journals for the year ended 30 June 2021 to eliminate only intragroup sales transactions within the group (13) ne vendinary and referencial a 20. 091 REQUIRED: 2.1 Prepare the pro forma journals for the year ended 30 June 2021 to eliminate only intragroup sales transactions within the group. (13) 2.2 Prepare the analysis of the ordinary and preference share capital at 30 June 2021. (16) 2.3 Prepare the following components of the consolidated financial statements of the P Ltd Group at 30 June 2021: Consolidated statement of Profit or Loss and Other Comprehensive Income; (17) Consolidated Statement of Changes in Equity (9) (55) 'n Focus The following are the condensed statements of financial position of P Ltd and subsidiary at 30 June 2021, the date on which P Ltd acquired the interest in S Ltd: STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 P Ltd S Ltd ASSETS Plant and equipment 2 075 000 1 000 000 Investment in S Ltd: 37 500 ordinary shares at cost price 420 000 250 10% preference shares at cost 25 000 Inventories 120 000 400 000 Bank 360 000 Total Assets 3 000 000 1 400 000 2 000 000 EQUITY AND LIABILITIES Ordinary share capital (P Ltd: 100 000/S Ltd: 50 000) Preference share capital (500 shares) Retained earnings Long-term borrowings Trade payables Bank overdraft 655 000 400 000 50 000 440 000 200 000 260 000 50 000 1 400 000 345 000 3 000 000 EXTRACT FROM THE STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021 P Ltd S Ltd 1 540 000 Revenue 1 250 000 1605 Anny TOTAL COMPREHENSIVE INCOME FOR THE YEAR 220 000 EXTRACT FROM THE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 Retained earnings P Ltd S Ltd 475 000 300 000 Balance at 1 July 2020 Changes in equity for 2021 Total comprehensive income for the year: Profit for the year Dividend paid - Ordinary dividend Preference dividend Balance at 30 June 2021 220 000 (40 000) 175 000 (30 000) (5000) 440 000 655 000 Page 6 of 7 FAO (2021): ACCOUNTANCY IIB QUESTION 2 (CONTINUED) ADDITIONAL INFORMATION: 1. P Ltd acquired 37 500 ordinary shares at R420 000 and 250 10% preference shares at na wc 01 2000 QUESTION 2 (CONTINUED) ADDITIONAL INFORMATION 1 Pild acquired 37 00 ordinary shares at 1420 000 and 260 10% preference shares at 1026 000 in Sion 1 July 2010 Althus date, the retained camnings was R120 000 2 Al the acquisition date the directors were of the opinion that the fair value of the non- controlling interests was worth R160 000 The preference shareholders have a preferential nght to their dividend payment and will Foceive a proportionate share of the net assols available for distribution upon liquidation of the acquiree The fair value of the preference shares al acquisition date is R25 000 4 Pild started purchasing all of its inventones from Sid on 1 July 2019 At 30 June 2020 the dosing inventories of P Lid was R100 000 S Lid wells the inventories to P Ltd at cost price. 26% Intragroup sales for the reporting period ending 30 June 2021 was R$20 000 On 1 July 2020 P Ltd sold machinery with a cost of RBO 000 to S Ltd at R120 000. Both companies depreciate machinery 5% per year All preference dividends have been declared and paid 7 Tax implications may be ignored REQUIRED 21 Prepare the pro forma journals for the year ended 30 June 2021 to eliminate only intragroup sales transactions within the group (13) ne vendinary and referencial a 20. 091 REQUIRED: 2.1 Prepare the pro forma journals for the year ended 30 June 2021 to eliminate only intragroup sales transactions within the group. (13) 2.2 Prepare the analysis of the ordinary and preference share capital at 30 June 2021. (16) 2.3 Prepare the following components of the consolidated financial statements of the P Ltd Group at 30 June 2021: Consolidated statement of Profit or Loss and Other Comprehensive Income; (17) Consolidated Statement of Changes in Equity (9) (55) 'n Focus