On I January 20X7 Parent Ltd acquired 75% of the ordinary shares in Daughter Ltd for £9,000 cash. The fair value of the net assets in Daughter Ltd was their book value. Assume in each case that the non-controlling interest is measured using Method I.

Required in each case:
Prepare the statements of financial position of Parent Ltd and the consolidated statement of finan¬ cial position as at I January 20X7 after each transaction, using for each question the statements of financial position of Parent Ltd and Daughter Ltd as at I January 20X7 which were as follows:

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Parent Ltd Daughter Ltd E Ordinary shares of 1 each 40,500 9,000 Retained earnings 4,500 1,800 45,000 10,800 Cash 20,000 2,000 Other net assets 25,000 8,800 45,000 10,800