Xplc acquired 80 per cent of the ordinary share capital of Y plc on 1 January 2006 for £300,000.

The lists of balances of the two companies at 31 December 2006 were as follows:

(a) A remittance of £2,000 from Y plc to X plc in December 2006 was not received by X plc until January 2007.

(b) Goods, with an invoice value of £3,000, were despatched by X pic in December 2006 but not received by Y plc until January 2007. The profit element included in this amount was £400.
(Q. Included in the stock of Y plc at 31 December 2006 were goods purchased from X plc for £10,000. The profit element included in this amount was £2,000.

(d) No interim dividend was paid in 2006 by either company.

(e) Current accounts are the intragroup balances outstanding.

(f) Goodwill is not amortised.
(g) Y plc has proposed a dividend of £10,000 be paid. It is unpaid at 31 December 2006 and is not provided for in the above trial balances.

Required:
Prepare a consolidated balance sheet for X plc and its subsidiary Y plc as at 31 December 2006.

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Called-up share capital: 400,000 ordinary shares of 1 each, fully paid 300,000 ordinary shares of 0.50 each, fully paid Reserves as at 1 January 2006 Retained profits for 2006 Trade creditors Taxation Depreciation provisions: Freehold property Plant and machinery Current account X plc Y plc 000 000 400 150 220 90 40 28 130 80 30 14 12 6 40 12 14 872 394 Tangible fixed assets: Freehold property, at cost 120 160 Plant and machinery, at cost 183 62 Investment in Y plc 300 Stocks 80 70 Debtors 160 90 Bank 10 12 Current account 19 872 394