Hervin Ltd acquired all of the share capital in Camelot Ltd on December 31, 2011 when the reserves of the latter amounted to $150,000. The balance sheets of Hervin Ltd and Camelot Ltd as at December 31, 2012 were as follows:

Balance Sheet of Hervin ltd. plc (public limited company) and Camelot Ltd. At 31 December 2017 were as follows
	Hervin ltd.			Camelot Ltd.
	$	$	$	$
Tangible fixed assets	-	1,212,500	-	412,500
Investments in Camelot Ltd at costs	-	537,500	-	-
Stock	420,000	-	225,000	-
Debtors	217,500	-	85,000	-
Bank	140,000	-	57,500	-
	777,500	-	367,500	-
Less: creditors	(112,500)	665,000	(62,500)	305,000
	-	2,415,000	-	717,500
Capital and reserves	-	-	-	-
Ordinary shares of $1 each	-	1,750,000	-	500,000
Reserves	-	665,000	-	217,500
	-	2,415,000	-	717,500

Additional Information:

1. At December 31, 2012 Camelot Ltd. owed Hervin Ltd $35,000.
2. Included in the stock of Hervin Ltd are goods which Hervin Ltd had purchased from Camelot Ltd for $90,000. Camelot Ltd sells goods to Hervin Ltd at cost plus $20%.

Required

Prepare the consolidated balance sheet for the group as at December 31, 2012 (Total 25 marks).

Show all workings. (Consolidated stocks, Adjustments for intercompany indebtedness, Capital and Reserves, Goodwill)