Parent Company Ltd buys shares in Subsidiary 1 and Subsidiary 2 on 31 December 20X7. You are to draft the consolidated balance sheet as at 31 December 20X8 from the following:

Transcribed Image Text:

Parent Company Balance Sheet as at 31 December 20X8 Investment: Subsidiary 1: 80,000 shares Subsidiary 2: 30,000 shares Fixed assets Current assets Share capital Profit and loss account: As at 31.12.20X7 Add Profit for 20X8 General reserve £ 41,000 37,000 £ 125,000 49,000 230,000 74,000 478,000 350,000 78,000 50,000 478,000