The statements of financial position of Mars plc and Jupiter plc at 31 December 20X2 are as follows:

Statements of comprehensive income for the year ended 31 December 20X2

Mars acquired 80% of the shares in Jupiter on 1 January 20X0 when Jupiter’s retained earnings were £80,000 and the balance on Jupiter’s general reserve was £18,000. Non-controlling interests are measured using method 1. During the year Mars sold Jupiter goods for £18,000 which represented cost plus 50%. Half of these goods were still in stock at the end of the year.

During the year Mars and Jupiter paid dividends of £180,000 and £11,250 respectively. The opening balances of retained earnings for the two companies were £156,000 and £114,750 respectively.

Required:

Prepare a consolidated statement of comprehensive income for the year ended 31/12/20X2, a statement of financial position as at that date, and a consolidated statement of changes in equity. Also prepare the retained earnings columns of the consolidated statement of changes in equity for theyear.

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Jupiter Mars ASSETS Non-current assets at cost 550,000 225,000 Depreciation 220,000 67,500 330,000 157,500 Investment in Jupiter 187,500 Current assets Inventories 225,000 67,500 Trade receivables 180,000 90,000 Current account – Jupiter 22,500 Bank 36,000 18,000 463,500 175,500 333,000 Total assets 981,000 EQUITY AND LIABILITIES Capital and reserves £l common shares 196,000 90,000 General reserve 245,000 31,500 Retained earnings 225,000 135,000 666,000 256,500 Current liabiities Trade payables 283,500 40,500 Taxation 31,500 13,500 Current account – Mars 22,500 315,000 76,500 Total equity and liabilities 981,000 333,000