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kindly help with this consolidation question please Lwanga Ltd has owned 53% of the ordinary shares and 25% of the loan stock of Mwanga Ltd
kindly help with this consolidation question please
Lwanga Ltd has owned 53% of the ordinary shares and 25% of the loan stock of Mwanga Ltd since incorporation. Subsidien Mwanga Ltd toughe Lwanga Ltd K' K' Assets Non-current assets Property, plant and equipment 257,000 120,000 Motor vehicles 260,000 125,000 53, 000 ordinary shares of K1 each 53,000 15% loan stock 25,000 595,000 245,000 Current assets Inventories 50,000 60,000 Trade receivables 145, 000 30,000 Receivable from Mwanga Ltd 80,000 Cash 60,000 102,000 335.000 192,000 930,000 437,000 Equity and liabilities Equity Ordinary shares of K1 each 600,000 100, 000 Retained earnings 30,000 157,000 630, 000 257,000 Non-current liabilities 10% loan stock 200,000 15% loan stock 100, 000 Current liabilities Trade payables 100, 000 Payable to Lwanga Ltd 80,000 300,000 180,000 930,000 437,000 Additional Information 1. Mwanga bought K65, 000 worth of goods from Lwanga. These goods were sold to Mwanga at cost plus 20%. 60% of these goods were still in the inventory of Mwanga at the year end. Required J 15 Marks Prepare the consolidated statement of financial position of Lwanga Ltd. ION R Step by Step Solution
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