From the following balance sheets and supplementary information you are to draw up a consolidated balance sheet as at 31 December 19XS.

During the year P sold a fixed asset to S. It had cost P £3,000 and it was sold to S for £5,000. S had written off £500 as depreciation during 19XS.

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P Consolidated Balance Sheet as at 31 December 19XS Investment in S: 10,000 shares bought 31.12.19X4 Fixed assets Less Depreciation Current assets Share capital Profit and loss account: As at 31.12.19X4 Add Profit for 19X5 23,000 84,000 14,000 70,000 20,000 113,000 75,000 15,000 23,000 38,000 113,000 S Consolidated Balance Sheet as at 31 December 19X5 Fixed assets 26,000 Less Depreciation 10,000 16,000 Current assets 12,000 28,000 Share capital 10,000 Profit and loss account: As at 31.12.19X4 6,000 Add Profit for 19X5 7,000 13,000 General reserve (as at 31.12.19X4) 5,000 28,000