You have just started up a small accounting firm, and you have been hired by two clients. B & B Ltd. needs you to prepare a consolidated Balance Sheet and G Ltd. needs you to prepare a consolidated Trading, Profit and Loss Account.

B & B Ltd. acquired all of the share capital in AR Ltd. on December 31, 2016 when the reserves of the latter amounted to $20,000. The balance sheets of B & B Ltd. and AR Ltd. as at December 31, 2017 were as follows:

	B & B Ltd.			AR Ltd.
Tangible fixed assets		194,000		66,000
Investments in AR Ltd. at cost.		86,000
Stock	67,200		36,000
Debtors	34,800		13,600
Bank	22,400		9,200
	124,400		58,800
Less: creditors	(18,000)	106,400	(10,000)	48,800
		386,400		114,800
Capital and reserves
Ordinary shares of $1 each		280,000		80,000
Reserves		106,400		34,800
		386,400		114,800

Additional Information:

1. At December 31, 2017 AR Ltd. owed B & B Ltd. $4,000.
2. Included in the stock of B & B Ltd. are goods which were purchased from AR Ltd. for $24,000. AR Ltd. sells goods to B & B Ltd. at cost plus $20%.

Required

1. Prepare the consolidated balance sheet for the group as at December 31, 2017 (12 marks)
2. Provide notes to the statement showing the treatment for:
3. unrealized profit (4 marks)
4. inter-company indebtedness (5 marks)
5. capital and reserves (5 marks)
6. goodwill (4 marks)