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

\section*{Additional information:}

(a) Norbreck plc acquired 80 per cent of the shares in Bispham Ltd on 1 October 19X4. Bispham's profit and loss account balance as at that date was \(£ 40,000\).

(b) Goodwill arising on acquisition is to be written off against the group's retained profits.

(c) Norbreck takes credit within its own books of account for any dividends receivable from Bispham.
\section*{Required:}
Prepare Bispham plc's consolidated profit and loss account for the year to 30 September 19X7 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 vour calculation of earnings per share and a statement showing the make-up of 'retained profits carried forward'.

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Profit and Loss Accounts for the year to 30 September 19X7 Norbreck plc Bispham Ltd 000 000 Turnover 1,700 450 Cost of sales (920) (75) Gross profit 780 375 Administration expenses (300) (175) Income from shares in group company 120 Profit on ordinary activities before taxation 600 200 Tax on profit on ordinary activities (30) (20) Profit on ordinary activities after taxation 570 180 proposed Dividends paid Retained profit for the year Retained profit brought forward Retained profit carried forward (90) (50) (270) (100) 210 30 220 70 430 100