Question

Prepare consolidated statement of financial position for Baldock plc and its subsidiary undertaking at 31 December 2017

Baldock plc acquired 75% of the issued share capital of Maulden Ltd on 1 January 2017 for 93,500. At that date, Maulden Ltd had issued share capital of 60,000 and retained earnings of 24,000. Extracts from the statements of financial position for the 2 companies one year later at 31 December 2017 are as follows: Baldock plc Maulden Ltd Assets: Investment in Maulden Non-current assets Current assets Total assets Equity Share capital Retained earnings Total equity: Current liabilities Total equity and liabilities 93,500 131,500144,000 57,000 282,000 254,400 110,400 50,000 200.000 132,000 250,000 192,000 32.00062.400 282,000 254,400 60,000 Additional data: Included within the current assets of Baldock plc and in the current liabilities of Maulden Ltd is an inter company transaction for 3,000 that took place in early November 2017. . Baldock plc has decided non-controlling interest will be valued at their proportionate share of net assets

Answer 1

urrent assets Inventories Receivables Cash in transit 15,000 15,000 1.000 A + B A +B $3,000 The reconciling item 31,000 80,500 EQUITY LIABILITIES Issued capital Retained earnings 0,000 A only 17,000 57,000 4,500 See working 3 Nonoling interests See working 1 Current liabilities Trade payables Bank overdraft 10,000 9,000 A +B $2,000 A +B 19,000 80,500 Workings 1. Non controlling interests 25% × $18,000 = $4,500 2. Goodwill Cost of investment Net assets at the date of acquisition 15,000 Issued capital Retained earnings 10,000 4,000 14,000 Group share (75%) Total goodwil (10,500 4.500 3. Retained earnings Activate Windows Go to Settings to activate Win 14,000 Retained earnings of A 75% of postacquisition retained earnings of B ($8,000 $4,000 3,000 17,000