URGENT On 1 June 2019 , Big acquired 80 of the equity share capital of Small The consideration consisted of two elements a share exchange of three shares in Big for every five acquired shares in Small and Rs 800,000 cash The share issue and cash given has not yet been recorded by Big At the date of acquisition shares in Big had a market value of Rs 5 each Below are the summarised draft financial statements of both entities As at September 30, 2019 Big Small Rs thousands Assets Non current assets PPP E 25,500 13,900 Cash 1,800 0 27,300 13,900 Current Assets 12,500 2,400 Total Assets 39,800 16,300 Equity and Liabilities Equity Equity shares for Rs 1 each 12,000 5,000 Other equity 500 0 Retained earnings 12,300 4,500 24,800 9,500 Liabilities Current Liabilities 15,000 6,800 39,800 16,300 The following information is relevant Consideration given shares exchanged cash (5,000,000 x 80 )x (3 5) x5 800,000 Rs12,000,000 Shares given for purchases of Small will result in the following balances on Bigs books Equity Shares 12,000,000 2,400,000 14,400,000 Share premium 9,600,000 Retained earnings of Small at acquisition date were Rs 3,200,000 At the date of acquisition, the fair values of Smalls assets were equal to their carrying amounts with the exception of its property This had a fair value of Rs1 2 million below its carrying amount, and had a remaining useful life of 8 years at the date of acquisition Small has not incorporated this in its financial statements Sales from Small to Big throughout the year ended 30 September 2019 had consistently been Rs1 million per month Small made a mark up on cost of 25 on these sales Big had Rs2 million (at cost to Big) of inventory that had been supplied in the post acquisition period by Small as at 30 September 2019 (Hint use 25 125 x inventory adjustment) Big had a trade payable balance owing to Small of Rs 350,000 as at 30 September 2019 This did not agree with the corresponding receivable in Smalls books due to a Rs130,000 payment made to Small, which Small has not yet recorded Bigs policy is to value the non controlling interest at fair value at the date of acquisition, deemed to be Rs 3 5 million Required Prepare Consolidated statements for the group as of 30 th September 2019

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URGENT!!!!! On 1 June 2019 , Big acquired 80% of the equity share capital of Small. The consideration consisted of two elements: a share exchange

URGENT!!!!!

On 1 June 2019, Big acquired 80% of the equity share capital of Small.

The consideration consisted of two elements: a share exchange of three shares in Big for every five acquired shares in Small and Rs 800,000 cash. The share issue and cash given has not yet been recorded by Big.

At the date of acquisition shares in Big had a market value of Rs 5 each. Below are the summarised draft financial statements of both entities.

As at September 30, 2019	Big	Small
Rs thousands Assets Non-current assets PPP&E	25,500	13,900
Cash	1,800 0
27,300		13,900

Current Assets 12,500 2,400

Total Assets 39,800 16,300

Equity and Liabilities Equity
Equity shares for Rs 1 each	12,000	5,000
Other equity	500	0
Retained earnings	12,300	4,500
	24,800	9,500
Liabilities Current Liabilities	15,000	6,800
	39,800	16,300
The following information is relevant:

Consideration given= shares exchanged + cash= (5,000,000 x 80%)x (3/5) x5 + 800,000 = Rs12,000,000
Shares given for purchases of Small will result in the following balances on Bigs books

Equity Shares= 12,000,000+ 2,400,000 =14,400,000

Share premium =9,600,000

Retained earnings of Small at acquisition date were Rs 3,200,000
At the date of acquisition, the fair values of Smalls assets were equal to their carrying amounts with the exception of its property. This had a fair value of Rs1.2 million below its carrying amount, and had a remaining useful life of 8 years at the date of acquisition. Small has not incorporated this in its financial statements.
Sales from Small to Big throughout the year ended 30 September 2019 had consistently been Rs1 million per month. Small made a mark-up on cost of 25% on these sales. Big had Rs2 million (at cost to Big) of inventory that had been supplied in the post-acquisition period by Small as at 30 September 2019. (Hint use 25/125 x inventory adjustment)
Big had a trade payable balance owing to Small of Rs 350,000 as at 30 September 2019. This did not agree with the corresponding receivable in Smalls books due to a Rs130,000 payment made to Small, which Small has not yet recorded.
Bigs policy is to value the non-controlling interest at fair value at the date of acquisition, deemed to be Rs 3.5 million.

Required

Prepare Consolidated statements for the group as of 30th September 2019.