12.1 The following information relates to the balance sheets of Johnson Ltd and Samson Ltd at 31 December 20X6. At this date Johnson Ltd purchased all the shares of Samson Ltd.

Johnson Ltd Samson Ltd 12.2

£000

£000

£000

£000 Fixed assets 1,400 580 Investment at cost 920

—

Current assets:

Stock 640 290 Debtors 280 100 Bank 160 40 1,080 430 Less: Current liabilities:

Creditors 520 160 Net current assets 560 270 2,880 850 Share capital and reserves Share capital 2,000 750 Retained earnings 880 100 2,880 850 Required: Prepare a consolidated balance sheet as at 31 December 20X6.