Abridged financial statements for Harvest Limited and Wheat Limited as at 30 June this year are set out below. On 1 July last year Harvest Limited acquired 800,000 ordinary shares in Wheat Limited for a payment of £3,500,000. Wheat Ltd€™s share capital and share premium were each the same throughout. Similarly, the assets in the statement of financial position of Wheat Limited were shown at fair market values, throughout.

Required: 

Prepare the consolidated statement of financial position for Harvest Ltd as at 30 June this year, using the data given above.

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Statements of financial position as at 30 June this year Harvest Limited Wheat Limited £000 £000 ASSETS Non-current assets Property, plant and equipment 10,850 4,375 Investment Shares of Wheat Limited 3,500 14,350 3,775 18,125 4,375 1,470 5,845 Current assets Total assets EQUITY AND LIABILITIES Equity Share capital (£1 shares) Share premium account 2,000 1,000 3,000 500 Revenue reserves at 1 July last year Profit for the current year Total equity 2,800 375 399 8,199 75 1,950 Non-current liabilities Bank loans 7,000 2,926 18,125 2,500 1,395 5,845 Current liabilities Total equity and liabilities