A Co. owns 75 per cent of the shares in B Co., bought when the reserves of B were :200,000. The individual balance sheets of A and B as at 30 June 20X8 are given in Table 14.10. During the year, B has sold goods to A at a profit margin of 25 per cent on cost. Of these goods :50,000 remain in A’s closing inventory as at 30 June 20X8.
Also B owes A :2,000 as at 30 June 20X8. Prepare the consolidated balance sheet as at 30 June 20X8.

Transcribed Image Text:

Table 14.10 Individual balance sheets as at 30.6.20X8 A 000 B 000 Assets Land and plant Investment in B Inventory Receivables 1,000 200 275 600 400 200 40 2,075 Liabilities Payables 30 2,045 Represented by: Ordinary 1 shares 1,000 Reserves 1,045 2,045 g|| 16 624