The following information is relevant in the preparation of the group financial statements of the Prague Group:

1. On 1 January 2021 Prague Bhd acquired 70% of the ordinary share in Sofia Bhd. The consideration paid by Prague Bhd for these shares was RM600,000 cash. The accumulated profits of Sofia Bhd on 1 January 2021 were RM170,000. There have been no changes in Sofia Bhd’s issued share capital since then.
2. On 30 December 2021 Prague Bhd acquired 25% of the non-redeemable preference shares in Sofia Bhd. The consideration paid to Sofia was RM10,000 cash.
3. On 2 January 2021 Prague Bhd made a further acquisition by purchasing 25% of the ordinary shares in Ankara for RM85,000. The retained profits of Ankara at the date of acquisition were RM90,000.
4. At the date of acquisition, Sofia’s plant had a fair value of RM50,000 higher than its book value at the date of acquisition. This revaluation has not been reflected in the books of Sofia. At the date of acquisition, the plant had an estimated life of 10 years.
5. On 20 December 2021 Prague Bhd bought inventories from Sofia Bhd for RM30,000. The goods were sold at a markup of 20%. Of these sales, 80% of these goods were still in the inventory of Prague Bhd at year end.
6. On 30 December 2021 Sofia Bhd made a payment of RM20,000 to Prague Bhd. The payment was only received and recorded by Prague Bhd on 4 January 2022.

7. The goodwill arising on consolidation on Sofia Bhd had been impaired by RM10,000 in the current year ended 31 December 2021.
8. On 31 December 2021, Prague Bhd proposed a dividend of 10 cents per share. Ankara Bhd had paid a dividend of 10 cents per share on 30 December 2021.
9. It is group policy to value the non-controlling interest using the fair value method. The fair value of the non-controlling interest of Sofia Bhd at the date of acquisition was RM220,000
10. All revenues and expenses are expected to accrue evenly throughout the year.

Required:

1. Prepare a consolidated statement of comprehensive income for Prague Bhd and its group of companies for the year 31 December 2021. (Important: Explain in Excel.
2. 

Statement of Financial Position at 31 December 2021 Prague Bhd Sofia Bhd Ankara Bhd Assets RM RM RM Non-current assets Tangible Fixed Assets Investment Properties Other investments 1,000,000 500,000 20,000 610,000 S00,000 200,000 600,000 100,000 10,000 Ivestments in Sofia Bhd Investments in Ankara 85,000 2.215,000 1,010.000 700,000 Crrent asseta Inventories Other Current Assets 540,000 400,000 250,000 40.000 110,000 150,000 Inter-company currert account Cash at bank 20,000 348,000 3.723.000 130,000 1,090.000 340.000 Total assets 1640.000 Equity & Liahilities Eguity Ordirury shares at RMI 1,300,000 500.000 220,000 5% Non-Redoemable Preference Shares 20,000 370.000 643,000 1,943,000 450,000 Retained earnings 218,000 438,000 890,000 10% Debentres Carrent liabilisiss Trade payables Dividend proposed 500,000 550,000 460,000 130,000 700,000 3.723,000 192,000 1,090,000 Other liabilities 200.000 Total Equity and Lilahilities 1,640.000 Statemw ats of Congeebeentve lacome fer year te 31 Decruter 2021 Prague lihd Nelia Bhd Aakara Rhd RM RM RM Revene Cost of sales Grosa profit 700.000 (400 000) 300,000 300.000 L600.000 (1.000 000) 600,000 220.000 Selling & Distribuion csperses Admistrative capemes inclading depreciation Finance Expenes Proda before tax Dividend lone Tax experme Prodit for the your (60,000) 42,500 (45.000) 337,500 5,500 (20,000) 473.000 (20,000) (60.000) (20,000) 35,000) 220,000 165,000 (20.000) 200,000 (15000) 150,000 State ments of Changers in Retained Farnings for the year ended 31 Dlecember 2021 Prague Hhd Sefia Bld Ankara Hlad RM RM Ralance at I Janary 2021 Profit for the year Less: Diridends 170,000 300,000 473,000 (130.000) 643,000 90,000 150000 (22.000) 218,000 200,000 Balance at 31 Decenber 2021 370,000