The following balances were taken from the accounting records of D$-$ MAX Limited, S$-$MAX Limited and A$-$MAX Limited at $30$ June $20\mathrm{.}5$:

Additional information

On $1$ July $20\mathrm{.}2$ D$-$MAX Limited purchased $60000$ ordinary shares in S$-$MAX Limited for R$1800000.$ On the same day S$-$MAX Limited purchased $40000$ ordinary shares in AMAX Limited and paid R$1600000$ for the investment.

On $1$ July $20\mathrm{.}2$ the following information was applicable:

$\backslash$table$[[,\backslash$table$[[$S$-$MAX$],[$Limited$]],$A$-$MAX$],[$Limited$,,]]$

On $1$ July $20\mathrm{.}2$ S$-$MAX Limited valued A$-$MAX Limited's land at $$1600000.$ The value was not changed in the books of A$-$MAX Limited. The fair values of the remaining assets, liabilities and contingent liabilities of S$-$MAX Limited and A$-$MAX Limited on $1$ July $20\mathrm{.}2$ were considered to be equal to the carrying amounts of these items.

On $30$ June $20\mathrm{.}5$ A$-$MAX Limited had inventories on hand purchased from D$-$MAX Limited for $$300000.$ D$-$ MAX Limited makes a profit of $50\%$ on the cost price of inventories sold to A$-$MAX Limited.

A$-$MAX Limited sold inventories to S$-$MAX Limited at cost price plus ${33}^1\frac{1}{3}\%.$ On $30$ June $20\mathrm{.}5$ S$-$MAX Limited still had inventories to the value of $$100000$ on hand which was purchased from A$-$MAX Limited.

Included in the trade receivables of D$-$MAX Limited is a loan to A$-$MAX Limited to the amount of $$15000.$ The loan is included in the trade payables balance of A$-$MAX Limited.

The following transfers to non$-$distributable reserve must still be made at $30$ June $20\mathrm{.}5$ by the companies:

D$-$ MAX Limited

S$-$MAX Limited

A$-$MAX Limited

$

$110000$

$180000$

$175000$

Assume a tax rate of $30\%.$

The goodwill that arose on the acquisition of S$-$MAX Limited was considered to be impaired by $$200000$ at year end.

The fair value of available$-$for$-$sale financial assets is equal to the cost price thereof.

Each share carries one vote.

REQUIRED

a$)$ Prepare the consolidated annual financial statements of Left Limited and its subsidiaries for the year ended $30$ June $20\mathrm{.}5.[25]$

b$)$ Prepare journals $[15]$

No notes are required. Ignore comparative figures.