364 QUESTION 3 The following information relates to Soup Limited, and its subsidiary companies, Meat Limited and year to December 31, 2020. Water Limited, for the Profit and Loss Accounts Sales Cost Profit before tax Tax Profit after tax Dividends Retained profits Retained profits b/f Retained profits c/f Balance Sheets Property, plant and equipment Investment Meat Ltd. Water Ltd. Bank Debtors Creditors Accruals Dividend payable ww Ordinary shares Retained profits SOUP LTD. $000 10,000 4,000 6,000 1,700 4,300 300 4,000 1,240+ 5,240 SOUP LTD. $'000 2,800 1,000 2,500 100 200 (50) (10) (300) 6,240 ===== 1,000 5,240 6,240 ===== MEAT LTD. $'000 6,000 5,000 1,000 400 600 to 8 600 490 1,090 MEAT LTD. $'000 1,000 50 250 (10) 1,290 200 1,090 1,290 WATER LTD. $1000 4,000 2,500 1,500 700 8000 800 1,270 2,070 ==== WATER LTD. $'000 2,000 100 100 (20) (10) 2,170 ===== 100 2,070 2,170 ADDITIONAL INFORMATION: two year: Soup Limited bought an 80% holding in Meat Limited ago when Meat Limited net assets at fair value were $450,000. At that time Meat Limited retained profits were $250,000. when At Soup Limited purchased a 100% holding in Water Limited on January 1, assets at Water that net Water Limited time value fair retained were profit: 2020, $1,370,000. were $1,270,000. 369 Limited REQUIRED: fol Soup Limited $80,000 Meat to Limited sold goods costing $100,000. Meat Limited sold all the goods at the year end. increase Soup Limited had 1,000,000 ordinary shares in issue during 2020. Statement and the Consolidate year ended December 31, Prepare the Consolidated Income Statement of Changes in Equity for the 2020, and the Consolidated Balance Sheet as at that date.

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