Alpha paid £450 to acquire 300 ordinary shares in Beta on 1 July 2010 when:

(i) Beta’s Retained earnings were £40;

(ii) Fair value of Beta’s property plant was £120 more than the book value; and

(iii) Beta’s shares were quoted at 130p each.

You are informed as follows:

(a) As at 30 June 2012 Receivables reported by Alpha included £80 due from Beta; whereas the corresponding amount reported by Beta was £62. Goods in transit on this date were £15. The remainder of the difference arose from cash in transit.

(b) Based on fair valuation Beta should have depreciated its property and plant by £4 more per annum.

(c) As at 30 June 2012 Beta’s inventory included goods invoiced to it by Alpha at £75. Alpha invoices Beta at prices calculated to produce a gross profit ratio of 20%.

Required: 

Prepare the Consolidated Statement of financial position as at 30 June 2012.

Transcribed Image Text:

Statements of financial position as at 30 June 2012 Alpha Non-current assets: Property, plant Investments Current assets: Inventory Trade receivables Cash and bank لیا 320 428 32 £ 980 495 780 2,255 Beta 41 180 260 20 £ 510 30 460 1,000