From the following statements of financial position and further information you are to draw up a consolidated statement of financial position as at 31 December 2016.

During the year Parent Ltd had sold to Subsidiary Ltd for £80,000 a non-current asset which had cost it £64,000. Subsidiary Ltd has written off 25% of the amount it paid, i.e. £20,000 as depreciation for 2016.

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Parent Ltd Statement of Financial Position as at 31 December 2016 Non-current assets Investment in Subsidiary: 700,000 shares bought 31.12.2015 Other non-current assets Less Depreciation Current assets Share capital Retained profits: As at 31.12.2015 Add Profit for 2016 £ Non-current assets Less Depreciation Current assets Share capital Retained profits: As at 31.12.2015 Add Profit for 2016 800,000 (380,000) 270,000 60,000 Subsidiary Ltd Statement of Financial Position as at 31 December 2016 £ 118,000 52,000 £ 1,050,000 420,000 160,000 1,630,000 1,300,000 330,000 1,630,000 £ 750,000 (190,000) 560,000 310,000 870,000 700,000 170,000 870,000