Pa and Ma Ltd bought 60% of the shares of Son and Daughter 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. The amounts shown in the balance sheets are a correct reflection of the fair values.

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Pa and Ma Balance Sheet as at 31 March 2005 E Investment in Son and Daughter Ltd: 60,000 shares bought 31.3.2004 64,000 Non-current assets 190,000 Current assets Share capital Retained profits: As at 31.3.2004 Add Profit for 2005 General reserve 46,000 300,000 200,000 31,000 39,000 70,000 30,000 300,000