You are presented with the following information from the Seneley group of companies for the year to 30 September 20X6:

Additional information:

(a) The authorised, issued and fully paid share capital of all three companies consists of £1 ordinary shares.

(b) Seneley purchased 320,000 shares in Lowe Ltd on 1 October 20X3, when Lowe’s profit and loss account balance stood at £90,000.

(c) Seneley purchased 140,000 shares in Wright Ltd on 1 October 20X5, when Wright’s profit and loss account balance stood at £60,000.

(d) During the year to 30 September 20X6, Lowe had sold goods to Wright for £15,000. These goods had cost Lowe £7,000, and Wright still had half of these goods in stock as at 30 September 20X6. Minority interests are not charged with their share of any unrealised stock profits.

(e) Included in the respective trade creditor and trade debtor balances as at 30 September 20X6 were the following intercompany debts:

l Seneley owed Wright £5,000

l Lowe owed Seneley £20,000

l Wright owed Lowe £25,000.

(f ) Seneley does not amortise goodwill arising on consolidation.

Required:

Prepare the Seneley group’s consolidated balance sheet as at 30 September 20X6. Your workings should be submitted.

Transcribed Image Text:

Tangible fixed assets Investments Shares in group companies: Lowe Ltd Wright Ltd Current assets Stocks Trade debtors Cash at bank and in hand Creditors: amounts falling due within one year Trade creditors Net current assets Capital and reserves Called-up share capital Profit and loss Seneley plc £000 225 450 130 580 225 240 50 515 (320) 195 1,000 800 200 1,000 Lowe Ltd £000 300 150 180 10 340 (90) 250 550 400 150 550 Wright Ltd £000 220 | 45 50 5 100 (70) 30 250 200 50 250