You are presented with the following summarised information for Norbreck plc-and its subsidiary, Bispham Ltd:

Additional information:

(a) Norbreck plc acquired 80 per cent of the shares in Bispham Ltd on 1 October 2004. Bispham’s profit and loss account balance as at that date was £10,000.

(b) Goodwill arising on acquisition is capitalised. There is no impairment adjustment to be made to the amount; and it is not amortised. During the year, Norbreck paid dividends of £360,000 and Bispham paid dividends of £150,000.

Required:
Prepare Bispham plc's consolidated profit and loss account for the year ending 30 September 2007 and a consolidated balance sheet as at that date.
Note: Formal notes to the account are not required, although detailed workings should be submitted with your answer. You should also append to the consolidated profit and loss account your calculation of earnings per share and a statement showing the make-up of ‘retained profits carried forward’.

Transcribed Image Text:

Profit and Loss Accounts for the year to 30 September 2007 Norbreck plc 000 Bispham Ltd 000 450 Turnover Cost of sales Gross profit Administration expenses Income from shares in group company Profit on ordinary activities before taxation Tax on profit on ordinary activities Profit on ordinary activities after taxation 1,700 (920) 780 (300) 120 600 L (75) 375 (175) 200 (30). (20) 570 180