From the following balance sheets and further information you are to draw up a consolidated balance sheet as at 31 December 2003.

During the year Parent Ltd had sold to Subsidiary Ltd for £70,000 a fixed asset which had cost it £60,000. Subsidiary Ltd has written off 20 per cent of the amount it paid, i.e. £14,000 as Hole for 2003.

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Parent Ltd Balance Sheet as at 31 December 2003 Fixed assets Investment in Subsidiary: 400,000 shares bought 31.12.2002 Less Depreciation Current assets 650,000 450,000 (200,000) 250,000 90,000 990,000 Share capital 800,000 Profit and loss: As at 31.12.2002 150,000 Add Profit for 2003 40,000 190,000 990,000