Dad and Mum Ltd bought 60 per cent of the shares of Child 1 and 2 Ltd on 31 March 2004.

The balance sheets of the two companies on 31 March 2005 are as follows. You are to draw up a consolidated balance sheet as at 31 March 2005.

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Dad and Mum Balance Sheet as at 31 March 2005 Investment in Child 1 and 2 Ltd: 105,000 shares bought 31.3.2004 Fixed assets Current assets Share capital Profit and loss account: As at 31.3.2004 Add Profit for 2005 General reserve 130,000 154,000 22,000 306,000 100,000 74,000 92,000 166,000 40,000 306,000