Question 6

Pa and Ma ltd bought 60% of the shares of Son and Daughter ltd on 31 March 2013. The statement of financial position of the two companies on 31 march 2014 are as follows;

Pa and Ma statement of Financial position as at 31 March 2014

	$	$
Non-current assets
Investment in Son and daughter ltd 60,000 shares bought 31.03.2013		64,000
Non-current Assets		190,000
Current assets		46,000
		300,000
Equity
Share capital (sh. 1 shares)		200,000
Retained profit
As at 31.03.2013	31,000
Profit for 2014	39,000	70,000
General reserve		30,000
		300,000

Son and Daughter statement of Financial position as at 31 March 2014

	$	$
Non-current assets
Non-current Assets		112,000
Current assets		21,000
		133,000
Equity
Share capital (sh. 1 shares)		100,000
Retained profit
As at 31.03.2013	16,000
loss for 2014	3,000	13,000
General reserve		20,000
		300,000

Required,

Draw up the consolidated statement of financial position as at 31 march 2014. The amounts shown are a correct reflection of the fair values.