Summer plc acquired 60% of the common shares of Winter Ltd on 30 September 20X1 and gained control. At the date of acquisition, the balances on the reserves were as follows:

Additional paid-in capital – £20,000 Retained earnings – £35,000 At 31 December 20X1 the balance sheets of the two companies were as follows:

1. The fair value is the same as the book value.
2. There have been no movements on share capital since 30/9/20X1.
3. 8.33% of the goodwill is to be written off as an impairment loss.
Required:
Prepare a consolidated balance sheet for Summer plc as at 31 December 20X1.

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Summer Winter 000 000 ASSETS Non-current assets Property, plant and equipment 200 200 Investment in Winter 141 Current assets 100 Total assets 441 340 EQUITY AND LIABILITIES Common 5 shares 175 Additional paid-in capital 25 Retained earnings 161 361 Current liabilities 80 Total equity and liabilities 441 340 8224222 140 160 20 40 120