The following information relates to the Brodick group of companies for the year to 30 April 20X7:

Additional information:

(a) The issued share capital of the group was as follows:

Brodick plc: 5,000,000 ordinary shares of £1 each;

Lamlash Ltd: 1,000,000 ordinary shares of £1 each; and

Corrie Ltd: 400,000 ordinary shares of £1 each.

(b) Brodick plc purchased 80 per cent of the issued share capital of Lamlash Ltd in 20X0. At that time, the retained profits of Lamlash amounted to £56,000.

(c) Brodick plc purchased 60 per cent of the issued share capital of Corrie Ltd in 20X4. At that time, the retained profits of Corrie amounted to £20,000.

(d) Brodick plc recognises dividends proposed by other group companies in its profit and loss account.

Required:

In so far as the information permits, prepare the Brodick group of companies’ consolidated profit and loss account for the year to 30 April 20X7 in accordance with the Companies Acts and related accounting statements.

Transcribed Image Text:

Turnover Cost of sales Gross profit Administrative expenses Dividend from Lamlash Ltd Dividend from Corrie Ltd Profit before tax Taxation Profit after tax Interim dividend Proposed dividend Retained profit for the year Retained profits brought forward Retained profits carried forward Brodick plc £000 1,100 (630) 470 (105) 24 6 395 (65) 330 (50) (150) 130 460 590 Lamlash Ltd £000 500 (300) 200 (150) 50 (10) 40 (10) (20) 10 106 116 Corrie Ltd £000 130 (70) 60 (20) 40 (20) 20 (10) 10 30 40