The following accounts are the consolidated balance sheet and parent company balance sheet for Alpha Ltd as at 30 June 20X2.

Notes:
(i) There was only one subsidiar y called Beta Ltd.
(ii) There were no capital reser ves in the subsidiar y.
(iii) Alpha produced inventor y for sale to the subsidiar y at a cost of £3,360 in May 20X2. The inventor y was invoiced to the subsidiar y at £4,200 and was still on hand at the subsidiar y’s warehouse on 30 June 20X2. The invoice had not been settled at 30 June 20X2.
(iv) The retained ear nings of the subsidiar y had a credit balance of £16,800 at the date of acquisition.
No fair value adjustments were necessar y.
(v) There was a right of set-off between overdrafts and bank balances.
(vi) The parent owns 90% of the subsidar y.
Required:

(a) Prepare the balance sheet as at 30 June 20X2 of the subsidiary company from the information given above.

(b) Discuss briefly the main reasons for the publication of consolidated accounts.

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Parent Ltd Daughter Ltd Ordinary shares of l 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