The following information relates to the Brodick group of companies for the year to 68) April 2007:

Additional information:

(a) The issued share capital of the group was as follows:
Brodick plc: 5,000,000 ordinary shares of £1 each;
Lamlash Ltd: 1,000,000 ordinary shares of £1 each; and Corrie Ltd: 400,000 ordinary shares of £1 each.

(b) Brodick plc purchased 80 per cent of the issued share capital of Lamlash Ltd in 2000. At that time, the retained profits of Lamlash amounted to £56,000.

(c) Brodick plc purchased 60 per cent of the issued share capital of Corrie Ltd in 2004. At that time, the retained profits of Corrie amounted to £20,000.

Required:

In so far as the information permits, prepare the Brodick group of companies’ consolidated profit and loss account for the year ending 30 April 2007 in accordance with the Companies Acts and related UK accounting standards. (Note: Notes to the profit and loss account are not required, but you should append a statement showing the make-up of the ‘retained profits carried forward’, and your workings should be submitted.)

Transcribed Image Text:

Brodick plc 000 Lamlash Ltd Corrie Ltd 000 000 500 (300) (70) 200 (150) (20) Turnover Cost of sales Gross profit Administrative expenses Dividend from Lamlash Ltd Dividend from Corrie Ltd Profit before tax Taxation Profit after tax 1,100 (630) 470 (105) 24 395 (65) 330 ' 50 (10) 40 ' ' (20)