-A Chapter 23 - Consolidation of the financial statements of a group of companies Review questions Note: In all these review questions, unless otherwise indicated, assume that (a) the share capital of all the companies comprises of ordinary E1 shares; and (b) all values shown are fair values. From the following balance sheets, you are to draft a consolidated balance sheet for the group of Parent Ltd and its two subsidiaries, Sub 1 and Sub 2. Parent Ltd Balance Sheet as at 31 December 2004 E E Non-current assets Investment in Sub 1: 45,000 shares bought 31.12.2003 Other non-current assets Current assets 115.000 495.000 125,000 735,000 500,000 Share capital Retained profits: As at 31.12.2003 Add Profit for 2004 75.000 110,000 185,000 50,000 735.000 General reserve Sub 1 Ltd Balance Sheet as at 31 December 2004 Non-current assets Investment in Sub 2: 7,000 shares bought 31.12.2003 Other non-current assets Current assets 30.000 110,000 25.000 165.000 50.000 Share capital Retained profits: As at 31.12.2003 Add Profit for 2004 35.000 80,000 115.000 165.000 Sub 2 Ltd Balance Sheet as at 31 December 2004 f Non-current assets Current assets 12.000 6000 18.000 10.000 Share capital Retained profits: As at 31.12.2003 Add Profit for 2004 2.000 6.000 8000 18000 357