Rouge plc acquired 100% of the common shares of Noir plc on 1 Januar y 20X0 and gained control.

At that date the balance sheets of the two companies were as follows:

Required: Prepare a consolidated balance sheet for Rouge plc as at 1 January 20X0.

Transcribed Image Text:

ASSETS Rouge million Noir million Non-current assets Property, plant and equipment Investment in Noir 100 60 60 132 Current assets 80 Total assets 312 EQUITY AND LIABILITIES Common l shares 200 Retained earnings 52 252 Current liabilities 60 Total equity and liabilities 312 22 482||| 130 60 40 100 30 130