The following are the summarised statements of financial position of $P$ Ltd and $S$ Ltd at 31 December 2012

There were no additions or disposals of non-current assets by the group during the year.

(b) P Limited acquired its holding on 1 January 2012, when the balance on $\mathrm{S}$ Limited's reserves stood at $£ 50,000$. The investment consists of 150,000 ordinary shares of $£ 1$ each, fully paid, purchased for $£ 250,000$.

(c) P Limited included in its income statement a dividend of $£ 7,500$ from S Limited in March 2012, in respect of the shares acquired on 1 January 2012. S Limited does not intend to pay an ordinary dividend for the year ended 31 December 2012.
Required:
Prepare a consolidated statement of financial position for $\mathrm{P}$ Limited and its subsidiary $\mathrm{S}$ Limited at 31 December 2012.
Note: Ignore taxation.
(Chartered Institute of Management Accountants)

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P Limited S Limited Non-current assets Tangible non-current assets (see Note (a)) 320,000 360,000 Loan to S Ltd 50,000 Investment in S Ltd 250,000 Current assets Inventory 110,000 50,000 Accounts receivable 98,000 40,000 Loan interest 2,000 Bank 30,000 10,000 240,000 100,000 Total assets 860,000 460,000 Current liabilities Trade accounts payable 190,000 28,000 Loan interest 2,000 190,000 30,000 Non-current liabilities Loan from P Ltd 50,000 (190,000) (80,000) Net assets 670,000 380,000 Equity Ordinary shares of 1 each, fully paid 500,000 200,000 8% preference shares of 1 each, fully paid Reserves 100,000 170,000 80,000 670,000 380,000 Notes: (a) Tangible non-current assets P Limited Buildings Plant and machinery Motor vehicles Cost Cumulative depreciation WDV 120,000 10,000 110,000 200,000 40,000 160,000 80,000 30,000 50,000 400,000 80,000 320,000