The following balances were obtained from the books of A Ltd and its subsidiary. B Ltd$,$

for the year ended $28$ February $20\mathrm{.}4$:

Additional information

On $1$ March $20\mathrm{.}2,$ when B Ltd was incorporated, A Ltd acquired $80\%$ of the shares

and voting rights in B Ltd$.$ No goodwill was payable by A Ltd$,$ and at the date of

acquisition, the carrying amount of the assets and liabilities were equal to the fair

value thereof.

Since incorporation, A Ltd has bought all its inventories from B Ltd at cost plus

$33\mathrm{.}3\%.$ On $28$ February $20\mathrm{.}4$ inventories to the value of R$5000$ were still in transit.

B Ltd sold inventories of R$317000$ to A Ltd during the year.

On $1$ March $20\mathrm{.}2,$ B Ltd sold equipment to A Ltd at a profit of R$20000.$ Both

companies depreciate equipment at $20\%$ per annum on the straight$-$line method.

On $28$ February $20\mathrm{.}4,$ A Ltd sold property to B Ltd at a profit of R$20000.$ This profit

was included in the sales of the company.