The statement of financial position

The statement of financial position (balance sheet) of Herbert Ltd (H Ltd) and Selina Ltd (S Ltd) as at 31 December 2017 are as shown below: H Ltd S Ltd Tangible fixed assets 20,000 16,500 36,500 16.800 6,000 4,400 10,400 Land and building Plant and machinery Investment in S Ltd Current assets 1,200 600 3,900 7.200 12,900 Inventory Trade receivables 600 300 Current account with S Ltd Cash 4,500 5,400 Current liabilities (1,200) (2,400) (1,200) Trade payables (12,600) Current account with H Ltd Dividends payable (3,000) (2,700) 50,600 600 11,000 Total net assets 30,000 Share capital (30,000,000 and 6,000,000 shares issued and fully paid) Retained carnings Total cquity 6,000 20,600 50,600 5,000 11,000 H Ltd acquired 70% of the share capital of S Ltd on 1 January 2015 by an exchange of one share in H Ltd. plus $1 for every share in when the retained earings of S Ltd were $1,800,000 S Ltd. The market price of each of H's share and S's share at the date of acquisition were $3 and $2 respectively On 31 December 2017, S Ltd sent a cheque to H Ltd for $600,000 and also goods in transit of S900,000. Both cash and goods were not received by H Ltd unt 1 January 2018 H Ltd has not included any entries in its accounts relating to the dividend receivable from S Ltd. Forty percent of the goodwill is to be written off as an impairment loss in 2017 (Hint: Dr. Retaincd eamings and Cr. Goodwill) Required Prepare the consolidation journal entries for the H & S Ltd. Use fair value approach to assess NCI. 1 2 Prepare a consolidated Statement of the financial position (balance sheet) for H Ltd as at 31 December 2017 showing the adjustment by using a worksheet