Parent plc bought 40,000 shares in Subsidiary 1 Ltd and 27,000 shares in Subsidiary 2 Ltd on 31 December 2015. The following statements of financial position were drafted as at 31 December 2016. You are to draw up a consolidated statement of financial position as at 31 December 2016.

Transcribed Image Text:

Investments in subsidiaries Subsidiary 1 Ltd 60,000 shares Subsidiary 2 Ltd 40,000 shares Non-current assets Current assets Share capital Retained profits: As at 31.12.2015 Add Profit for 2016 General reserve Parent Statement of Financial Position as at 31 December 2016 Non-current assets Current assets Share capital Retained profits: Subsidiary 1 Statement of Financial Position as at 31 December 2016 As at 31.12.2015 Less Loss for 2016 General reserve (as at 31.12.2015) Non-current assets Current assets Share capital Retained profits: £ 17,000 24,000 As at 31.12.2015 Add Profit for 2016 General reserve (as at 31.12.2015) Subsidiary 2 Statement of Financial Position as at 31 December 2016 £ 5,000 (3,000) £ 6,000 8,400 £ 73,000 38,000 130,000 140,000 381,000 300,000 41,000 40,000 381,000 £ 79,000 34,000 113,000 100,000 2,000 11,000 113,000 £ 49,600 24,800 74,400 50,000 14,400 10,000 74,000