EXERCISE : S RECORD, H NOT RECORD

The following are the Statement of Financial Position of Anna Bhd and Elsa Sdn Bhd as at
31st December 2020.

Anna Bhd Elsa Sdn Bhd

RM RM
Non-Current Assets
Land 500,000 400,000
Plant and Machinery 220,000 350,000
Motor Vehicles 300,000 100,000
Investment:
Elsa Sdn Bhd (350 000 units) 600,000

Current Assets
Bank 150,000 100,000
Trade Receivables 100,000 110,000
Inventories 60,000 50,000
1,930,000 1,110,000

Financed by:
Ordinary shares 900,000 500,000
General reserve 300,000 100,000
Retained profit 540,000 400,000
Trade payables 100,000 60,000
Ordinary dividend payable 90,000 50,000
1,930,000 1,110,000
Additional information:

1. Anna Bhd. acquired the ordinary shares of Elsa Sdn. Bhd. on 31st December 2018
when the balance of the following accounts are as follows:
Retained Profit RM150,000
General Reserve RM100,000
2. RM20,000 in trade receivable of Anna Bhd is due from Elsa Sdn. Bhd.
3. 20% of the inventories in Elsa Sdn. Bhd were purchased from Anna Bhd which was
invoiced at cost plus 25%.
4. On 31st December 2020, 10% dividend on ordinary share of Elsa Sdn Bhd has been
declared and was not recorded by Anna Bhd.
5. Goodwill on consolidation is impaired by 25%.

You are required to prepare:

i) Adjustment Account [3 marks]
ii) Non-controlling Interest Account [3 marks]
iii) Subsidiary Retained Profit Account [4 marks]
iv) Consolidated Retained Profit Account [5 marks]

(c) Based on the answers in (b), construct the Consolidated Statement of Financial Position as
at 31st December 2020.