P Ltd bought 40,000 shares in $1 Ltd and 27,000 shares in $2 Ltd on 31 December 2002.

The following balance sheets were drafted as at 31 December 2003. You are to draw up a consolidated balance sheet as at 31 December 2003. Any negative goodwill is to be eliminated by adjusting the non-current assets of the relevant subsidiary.

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P Balance Sheet as at 31 December 2003 f Investments in subsidiaries $1 Ltd 40,000 shares S2 Ltd 27,000 shares Non-current assets Current assets Share capital 49,000 30,500 90,000 80,500 250,000 200,000 Retained profits: As at 31.12.2002 11,000 Add Profit for 2003 16,000 27,000 General reserve 23,000 250,000