On 1 April 19X1 Machinery Limited bought 80 per cent of the ordinary share capital of Components Limited and on 1 April 19X3 Machinery Limited was itself taken over by Sales Limited who purchased 75 per cent of the ordinary shares in Machinery Limited.

The balance sheets of the three companies at 31 October 19X5 prepared for internal use showed the following position:

Required:
Prepare a group balance sheet at 31 October 19X5 for Sales Ltd and its subsidiaries complying, so far as the information will allow, with the accounting requirements of the Companies Acts.

Transcribed Image Text:

Sales Ltd Machinery Ltd Components Ltd Fixed assets Freehold land at cost 89,000 30,000 65,000 Buildings at cost 100,000 120,000 40,000 Less Accumulated depreciation 36,000 40,000 16,400 64,000 80,000 23,600 Plant and equipment at cost 102,900 170,000 92,000 Less Accumulated depreciation 69,900 86,000 48,200 33,000 84,000 43.800 186,000 194,000 132,400 Investments Shares in Machinery at cost 135,000 Shares in Components at cost 96,000 Current assets Stocks 108,500 75,500 68,400 Debtors 196,700 124,800 83,500 Cash at bank 25,200 25,400 330,400 200,300 177,300 651,400 490,300 309,700 Current liabilities Creditors 160,000 152,700 59,200 Bank overdraft 37,400 Corporation tax 57,400 47,200 24,500 Proposed dividends 80,000 48,000 12,000 297.400 285,300 95,700 354,000 205,000 214,000