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

Additional information:

(a) Norbreck plc acquired 80% of the shares in Bispham Ltd on 1 October 2004. Bispham’s retained profits balance as at that date was £10,000.

(b) During the year, Norbreck paid dividends of £360,000 and Bispham paid dividends of £150,000.

Required:
Prepare Bispham plc’s consolidated income statement 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 income statement your calculation of earnings per share and a statement showing the make-up of ‘retained profits carried forward’.

Transcribed Image Text:

Income Statements for the year ending 30 September 2007 Norbreck plc 000 Bispham Ltd 000 Revenue 1,700 Cost of sales (920) 450 (75) Gross profit 780 375 Administration expenses (300) (175) Income from shares in group company 120 Profit before taxation 600 200 Taxation (30) (20) Profit for the year 570 180