Answered step by step
Verified Expert Solution
Question
1 Approved Answer
prepare a consolidated statement of financia position for p group of companies P Ltd has owned 65% of the ordinary shares and 50% of the
prepare a consolidated statement of financia position for p group of companies
P Ltd has owned 65% of the ordinary shares and 50% of the loan stock of S Ltd since incorporation. P Ltd S Ltd K' K' Assets Non-current assets Property, plant and equipment Motor vehicles 500, 000 420, 000 210,000 325, 000 Furniture and fittings 100, 000 25,000 Investment in S. Ltd 65,000 Investment in KZN Ltd 60,000 15% loan stock 65.000 1,000,000 770, 000 Current assets 500, 000 60,000 Inventories 300, 000 30, 000 Trade receivables 100, 000 Receivable from S Ltd 100,000 102, 000 Cash 1,000,000 192, 000 2,000,000 932,000 Equity and liabilities Equity Ordinary shares of K1 each 1,600,000 Retained earnings 100,000 1,700,000 Non-current liabilities 200, 000 10% loan stock 15% loan stock Current liabilities 100, 000 Trade payables Payable to P Ltd 300,000 230,000 2,000,000 932, 000 Additional Information 1. S Ltd bought K65, 000 worth of goods from P Ltd. These goods were sold to S Ltd at cost plus 30%. 40% of these goods were still in the inventory of S at the year end. 2. The difference in the amount receivable from S and that payable to P is due to cash- in-transit. Required Prepare the consolidated statement of financial position for the P Group of companies. 201 100, 000 602.000 702, 000 130,000 100, 000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started