On 1 April 2010, Machinery Limited bought $80 \%$ of the ordinary share capital of Components Limited. On 1 April 2012, Machinery Limited was itself taken over by Sales Limited who purchased $75 \%$ of the ordinary shares in Machinery Limited.

The statements of financial position of the three companies at 31 October 2014 prepared for internal use showed the following position:

\begin{tabular}{|c|c|c|c|c|c|c|}

\hline & Sale & & Machi & ry Ltd & Compo & ints Ltd \\

\hline & $£$ & $£$ & $£$ & $£$ & $£$ & $£$ \\

\hline Non-current assets & & & & & & \\

\hline Freehold land at cost & & 89,000 & & 30,000 & & 65,000 \\

\hline Buildings at cost & 100,000 & & 120,000 & & 40,000 & \\

\hline Less & & & & & & \\

\hline Accumulated depreciation & $(36,000)$ & & $\underline{(40,000})$ & & $(\underline{16,400})$ & \\

\hline & & 64,000 & & 80,000 & & 23,600 \\

\hline Less & 102,300 & & 17,000 & & 92,000 & \\

\hline Accumulated depreciation & $(69,900)$ & & $\underline{(86,000})$ & & $(48,200)$ & \\

\hline & & 33,000 & & 84,000 & & 43,800 \\

\hline & & $\overline{186,000}$ & & 194,000 & & $\overline{132,400}$ \\

\hline Investments & & & & & & \\

\hline Shares in Machinery at cost & & 120,000 & & & & \\

\hline Shares in Components at cost & & & & 128,000 & & \\

\hline & & $\overline{306,000}$ & & 322,000 & & $\overline{132,400}$ \\

\hline Current a $\quad$ a $x$. & & & & & & \\

\hline Inventory & 108,500 & & \begin{tabular}{ll}

75,500

\end{tabular} & & 68,400 & \\

\hline Account receivable & 196,700 & & 124,800 & & 83,500 & \\

\hline Cash at bank & 40,200 & & - & & $\underline{25,400}$ & \\

\hline & & $\underline{345,400}$ & & $\underline{200,300}$ & & $\underline{177,300}$ \\

\hline Total assets & & $\overline{651,400}$ & & 522,300 & & 309,700 \\

\hline Current liabilities & & & & & & \\

\hline Accounts payable & 240,000 & & 200,700 & & 71,200 & \\

\hline Bank overdraft & - & & 69,400 & & - & \\

\hline Corporation tax & 57,400 & & 47,200 & & 24,500 & \\

\hline & & $(\underline{297,400})$ & & $(317,300)$ & & $\underline{(95,700})$ \\

\hline Net assets & & $3 \underline{\underline{354,000}}$ & & $\underline{\underline{205,000}}$ & & $\underline{\underline{214,000}}$ \\

\hline Ordin & & 200,000 & & 120,000 & & 100,000 \\

\hline $10 \%$ preference sh & & & & & & 40,000 \\

\hline Revenue reserves & & $\frac{154,000}{2}$ & & $\frac{85,000}{30}$ & & $\frac{74,000}{21,000}$ \\

\hline & & 354,000 & & 205,000 & & $\underline{\underline{214,000}}$ \\

\hline

\end{tabular}

\section*{Additional information:}

(a) All ordinary shares are $£ 1$ each, fully paid.

(b) Preference shares in Components Ltd are 50p each fully paid.

(c) All creditors are payable within one year.

(d) Items purchased by Machinery Ltd from Components Ltd and remaining in inventory at 31 October 2014 amounted to $£ 25,000$. The profit element is $20 \%$ of selling price for Components Ltd.

(e) Depreciation policy of the group is to provide for:

(i) buildings - at the rate of $2 \%$ on cost each year;

(ii) plant and equipment - at the rate of $10 \%$ on cost each year including full provision in the year of acquisition.

These policies are applied by all members of the group.

Included in the plant and equipment of Components Ltd is a machine purchased from the manufacturers, Machinery Ltd, on 1 January 2013 for $£ 10,000$. Machinery Ltd recorded a profit of $£ 2,000$ on the sale of the machine.

(f) Intra-group balances are included in accounts receivable and accounts payable respectively and are as follows:
(g) A cheque drawn by Sales Ltd for $£ 11,300$ on 28 October 2014 was received by Machinery Ltd on 3 November 2014.
(h) At 1 April 2010, reserves in Machinery Ltd were $£ 28,000$ and in Components Ltd $£ 20,000$. At 1 April 2012 the figures were $£ 40,000$ and $£ 60,000$

Required:
Prepare a group statement of financial position at 31 October 2014 for Sales Ltd and its subsidiaries complying, so far as the information will allow, with the accounting requirements of international accounting standards.
(Association of Chartered Certified Accountants)