111 Q Prepare Consolidated Statement of racial a (10 marks) 3. i. Following financial statements have been prepared from A and B companies for the year ended 31.03.2017. Statement of Income for the year ended 31.03.2017 A company Rs. '000 B company Rs. '000 Sales 75,000 38,000 Cost of sales (30,000) (20,000) Gross Profit 45,000 18,000 Distribution cost (8,000) (4,000) Administration cost (12,000) (5,000) Financial cost (5,000) (2,000) Profit before Tax 20,000 7,000 Tax (4,000) (1,400) Profit after Tax 16,000 5,600 B/F retained Earnings 14,000 3,400 C/D retained Earnings 30,000 9,000 12 Page 2 of 4 Statement of Financial Position as at 31.03.2017 A company Rs. '000 B company Rs. '000 Non-current Assets Property, Plant & Equipment 80,000 40,000 Investment in Company B 25,000 2 Current Assets Stocks 11,000 20,000 Trade Receivables 14,000 8,000 Cash/Bank 10,000 12,000 Total Assets 140,000 80,000 Equity & Liabilities Stated Capital 40,000 21,000 Retained Earnings 30,000 9,000 Non-current Liabilities 10% Debentures 15,000 13,000 Current Liabilities Trade Payables 18,000 7,000 Accrued Expenses 16,000 10,000 Bank Overdraft 21,000 20,000 140,000 80,000 Company A has acquired 80% of ordinary share capital of Company B on 01.04.2016 You are required to prepare a) Consolidated income statement for the year ended 31.03.2017 b) Consolidated statement of Financial Position as at 31.03.2017 (10 marks) ii. Following statement of Financial Position has been extracted from the books of Compan as at 31 December 2017. Property Plant & Equipment Investment Current Assets ||| C Rs. 30,000 8,000 7,000