The following are the summarised balance sheets of P Ltd and S Ltd at 31 December 19X6.

There were no additions or disposals of fixed assets by the group during the year.

(b) P Limited acquired its holding on 1 January \(19 \mathrm{X} 6\), when the balance on \(S\) Limited's reserves stood at \(£ 50,000\). The investment consists of 150,000 ordinary shares of \(£ 1\) each, fully paid, purchased for \(£ 250,000\).

(c) P Limited credited to its profit and loss account a dividend of \(£ 7,500\) from \(S\) Limited in March 19X6, in respect of the shares acquired on 1 January 19X6. S Limited does not intend to pay an ordinary dividend for the year ended 31 December \(19 \mathrm{X} 6\).
Required:
Prepare a consolidated balance sheet for P Limited and its subsidiary S Limited at 31 December 19 X6.

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P Limited S Limited Tangible fixed assets (see note (a)) 320,000 360,000 Loan to S Ltd 50,000 Investment in S Ltd 250,000 Current assets: Stocks 110,000 50,000 Debtors 100,000 40,000 Bank 30,000 10,000 240,000 100,000 Creditors: amounts falling due within one year: Trade creditors 190,000 22,000 Proposed preference dividend 8,000 (190,000) (30,000) Total assets less current liabilities 670,000 430,000 Capital and reserves: Ordinary shares of 1 each, fully paid 500,000 200,000 8% preference shares of 1 cach, fully paid 100,000 Reserves 170,000 80,000 Loan from P Ltd 50,000 670,000 430,000