A You are presented with the following summarised information relating to Block plc for the year to 30 September 2014:

\section*{Additional information:}
1 Block purchased $80 \%$ of the share capital of Chip on 1 October 2009 for $£ 2,500,000$ when Chip's retained profits balance was $£ 200,000$ credit. The gain from a bargain purchase of $£ 60,000$ was recognised immediately in Block's profit or loss.
2 On 1 October 2013 Block purchased $60 \%$ of the share capital of Knot. Knot's retained profits balance at that date was $£ 500,000$ credit.
3 During the year to 30 September 2014, Block sold goods costing $£ 200,000$ to Chip for $£ 300,000$. Half of these goods remained in inventory at the year end.
4 Intercompany debts at the year end were as follows:
$$
\begin{array}{lc}
& £ 000 \\
\text { Chip owed Block } & 20 \\
\text { Knot owed Chip } & 30 \end{array}
$$
\section*{Required:}
Prepare the Block plc group of companies' consolidated statement of financial position as at 30 September 2014. Formal notes to the accounts are NOT required, although detailed working should be submitted with your answer.

Transcribed Image Text:

Block plc Chip Ltd Knot Ltd 000 000 000 Non-current assets and equipment 8,900 3,240 2,280 Investments Shares in group companies: Chip Ltd 2,560 Knot Ltd Total non-current assets Current assets Inventory Trade accounts receivable 1,600 4,160 13,060 3,240 2,280 300 160 80 1,600 130 50 Cash at bank and in hand 400 110 120 2,300 400 250 Current liabilities: Accounts payable (300) (140) (130) Net assets 15,060 3,500 2,400 Capital and reserves Called-up share capital (ordinary shares of 1 each) 10,000 3,000 2,000 Retained profits 5,060 500 400 15,060 3,500 2,400