Question Two The statement of financial position of P Ltd and S Ltd have been prepared uo to 31st December 2011, P Ltd owns Ordinary Shares and 40% of the loan stock in S Ltd since its incorporation. Assets P Ltd S Ltd Non-Current Assets Property, Plant and Equipment 192,000,000 160,000,000 Investment in S Ltd at cost -Ordinary Shares @ 1,600 128,000,000 -12% Loan Stock 32,000,000 Total Non-Current Assets 352,000,000 160,000,000 Current Assets Inventories 80,000,000 96,000,000 Accounts Receivables 64,000,000 48,000,000 Current Accounts with S Ltd 28,800,000 Cash at Bank 6,400,000 9,600,000 Total Current Assets 179,200,000 153,600,000 Total Assets 531,200,000 313,600,000 Equity and Liabilities Equity Ordinary shares @ Shs 1,600 160,000,000 128,000,000 Retained earnings 152,000,000 44,800,000 Total Equity 312,000,000 172,800,000 Non-current liabilities 12% Loan stock 120,000,000 80,000,000 Current Liabilities Accounts Payables 75,200,000 25,600,000 Taxation 24,000,000 16,000,000 Current Accounts with P Ltd 19,200,000 Total Current Liabilities 99,200,000 60,800,000 Total Equity and liabilities 531,200,000 313,600,000 The difference in the current accounts arises because of the goods in transit You are required to prepare the consolidated statement of financial position of P Ltd Group of Companies.