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Given the following balance sheets and additional information, prepare a consolidated balance sheet as of 30 June 2023. Parent Ltd Balance Sheet as at 30
Given the following balance sheets and additional information, prepare a consolidated balance sheet as of 30 June 2023.
Parent Ltd Balance Sheet as at 30 June 2023:
- Non-current assets: £1,400,000
- Less Depreciation: (£450,000)
- Current assets: £300,000
- Share capital: £1,500,000
- Retained earnings:
- As at 30.06.2022: £500,000
- Add Profit for 2023: £100,000
Subsidiary Ltd Balance Sheet as at 30 June 2023:
- Non-current assets: £900,000
- Less Depreciation: (£350,000)
- Current assets: £200,000
- Share capital: £700,000
- Retained earnings:
- As at 30.06.2022: £250,000
- Add Profit for 2023: £70,000
Additional Information: Parent Ltd acquired 75% of Subsidiary Ltd on 1 July 2022. Parent Ltd sold machinery to Subsidiary Ltd for £80,000, which originally cost Parent Ltd £75,000. Subsidiary Ltd depreciated this machinery by 12% during 2023.
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