QUESTION 13:

a) Below is the Income Statements of Alton Plc, Towers Ltd and Bridge Ltd for the year ended 31 March 2020.

Income Statement for the year ended 31 March 2020
	Alton Ltd	Towers Plc	Bridge Ltd
	000	000	000
Revenues	2,303	1,792	1,650
Costs of sales	(1,750)	(1,386)	1,292
Gross	553	406	358
Distribution costs	(140)	(98)	(85)
Administrative expenses	(126)	(70)	(63)
Profit before interest and tax (PBIT)	287	238	210
Finance costs	(77)	(42)	(28)
Investment income	10	0	0
Profit before tax	220	196	182
Taxation	(49)	(40)	(36)
Profit for the year	171	156	146

Additional information:

1. On 1 July 2019, Alton Plc acquired 75% of Towers Ltd equity shares. It has acquired 35% of Bridge Ltd issued shares a few year ago.
2. An impairment review at the reporting date revealed the goodwill in Towers to be impaired by 20,000
3. Assume that the profits accrue evenly.

Prepare a consolidated Income Statement for the Towers Plc group for the year-ended 31 March 2020.

(14 marks)

b) Extracts from Canterbury Ltd.s nominal ledger for the year ended 31 December 2019 are as follows:

000

Profit for the year 241

Dividend (110)

Retained earnings 131

During the year the following important events took place:

(i) Properties were revalued by 150,000 increase.

(ii) 210,000 equity shares of 1 were issued during the year.

The opening equity balances were as follows:

Issued capital 500,000

Revaluation surplus 125,000

Retained earnings 213,00

------------ 838,000

------------

Prepare the statement of changes in equity for the year-ended 31 December 2019.