Trumpet plc acquired 607,500 of the 1 ordinary shares of Tuba Limited on 1 April 2019 for 1,110,000 when Tuba Ltd's retained earnings were 443,000, and 16,875 of the share capital of Bugle Ltd on the same date for 80,000. The individual Statements of Financial Position for the three companies at 31 December 2019 are as follows: Assets Non-current assets Property, plant and equipment Investment in Tuba Ltd and Bugle Ltd Trumpet ple 1.736,400 1,190,000 2,926,400 Tuba Ltd 1.134,600 Bugle Ltd 500.750 1,134,600 500.750 Current assets Inventories Trade and Other receivables Cash and cash equivalents 490,725 283,538 440,138 1.214,400 4,140.800 119,250 165,230 161,570 446,049 1,580,649 150,500 216.000 60,750 427.250 928,000 675,000 168,750 Total assets Equity and Liabilities Equity Ordinary share capital - 1 Share Premium Retained earnings Total equity Current Liabilities Trade and Other payables Bank overdraft Taxation 2,625,000 375.000 687,000 3,687,000 641.250 1,316,250 612,000 780,750 288,800 246,399 145,000 165.000 453,800 4,140.800 18.000 264,399 1,580,649 11.250 156,250 937,000 Total equity and liabilities Additional Information: 1. On 1 September 2019, Trumpet plc sold a piece of equipment that it purchased 8 years ago to Tuba Ltd for 450,000; the net book value of the equipment at the time of sale was 300,000. Trumpet plc charges depreciation on a time apportioned basis. The remaining useful economic life of the equipment is 2 years. 2. On 30 December 2019, Tuba Ltd posted a cheque for 67,500 to Trumpet Ltd being part payment for the equipment purchased in September. Trumpet plc received the cheque on 3 January 2020. 3. Trumpet ple's trade receivables at the year-end include 82,500 owed from Tuba Ltd. Tuba Ltd's trade payables include 15,000 owed to Trumpet plc. 4. Trumpet plc account for Non-Controlling Interests using the partial goodwill method. Requirement: (a) Prepare the Consolidated Statement of Financial Position for the Trumpet Group as at 31 December 2019, showing following accounts: Cost of Control: Non-controlling Interests; Consolidated Reserves. 45 marks . Trumpet plc acquired 607,500 of the 1 ordinary shares of Tuba Limited on 1 April 2019 for 1,110,000 when Tuba Ltd's retained earnings were 443,000, and 16,875 of the share capital of Bugle Ltd on the same date for 80,000. The individual Statements of Financial Position for the three companies at 31 December 2019 are as follows: Assets Non-current assets Property, plant and equipment Investment in Tuba Ltd and Bugle Ltd Trumpet ple 1.736,400 1,190,000 2,926,400 Tuba Ltd 1.134,600 Bugle Ltd 500.750 1,134,600 500.750 Current assets Inventories Trade and Other receivables Cash and cash equivalents 490,725 283,538 440,138 1.214,400 4,140.800 119,250 165,230 161,570 446,049 1,580,649 150,500 216.000 60,750 427.250 928,000 675,000 168,750 Total assets Equity and Liabilities Equity Ordinary share capital - 1 Share Premium Retained earnings Total equity Current Liabilities Trade and Other payables Bank overdraft Taxation 2,625,000 375.000 687,000 3,687,000 641.250 1,316,250 612,000 780,750 288,800 246,399 145,000 165.000 453,800 4,140.800 18.000 264,399 1,580,649 11.250 156,250 937,000 Total equity and liabilities Additional Information: 1. On 1 September 2019, Trumpet plc sold a piece of equipment that it purchased 8 years ago to Tuba Ltd for 450,000; the net book value of the equipment at the time of sale was 300,000. Trumpet plc charges depreciation on a time apportioned basis. The remaining useful economic life of the equipment is 2 years. 2. On 30 December 2019, Tuba Ltd posted a cheque for 67,500 to Trumpet Ltd being part payment for the equipment purchased in September. Trumpet plc received the cheque on 3 January 2020. 3. Trumpet ple's trade receivables at the year-end include 82,500 owed from Tuba Ltd. Tuba Ltd's trade payables include 15,000 owed to Trumpet plc. 4. Trumpet plc account for Non-Controlling Interests using the partial goodwill method. Requirement: (a) Prepare the Consolidated Statement of Financial Position for the Trumpet Group as at 31 December 2019, showing following accounts: Cost of Control: Non-controlling Interests; Consolidated Reserves. 45 marks
