Question

The following are the financial statements of the parent company Alpha plc, a subsidiary company Beta and an associate company Gamma. Statements of financial position as at 31 December 20X9 Alpha Beta Gamma 256,500 202,500 540,000 216,000 156,600 54,000 72,900 135,000 91,800 ASSETS Non-current assets Land at cost Investment in Beta Investment in Gamma Current assets Inventories Trade receivables Dividend receivable from Beta Dividend receivable from Gamma Current account - Beta Current account - Gamma Cash Total current assets Total assets EQUITY AND LIABILITIES £l shares Retained earnings 162,000 108,000 10,800 1,620 10.800 13,500 237,600 544,320 1,456,920 62,100 189,000 445,500 67,500 294,300 496,800 27,000 540,000 769.500 1,309,500 67,500 329,400 396,900 391,500 418,500 Current liabilities Trade payables Dividends payable Current account - Alpha Total equity and liabilities 93,420 54,000 24,300 13,500 10,800 445.500 59,400 5,400 13,500 496,800 1,456,920

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Answer 1

Answer :

Consolidated statement of Financial position

as at December 2009

#	Note	Group
Assets	-	( £)
Non Current Assets	-	-
Land at cost	-	999,000
Investment in Beta	1	-
Investment in Gamma	1	-
Goodwill	-	310,500
Current assets	-	-
Inventories	-	351,000
Trade receivable	-	272,700
Divedend Receivable from Beta	4	-
Dividend Receivalble from Gamma	4	-
Current account Beta	3	-
Current account Gamma	3	-
Cash	-	367,200
Total cureent assets	-	990,900
Total assets	-	2,300,400
Equity and liabilities	-	-
£ 1 Shares	1&2	540,000
Retained Earnings	2	1,150,470
Non controlling interest	2	372,330
Current liabilities	-	-
Trade payables	-	177,120
Dividend payable	4	60,480
Current account Alpha	3	-
Total Equity and Liabilities	-	2,300,400

Working :

#	Note	Alpha	Beta	Gamma	Eliminated	Group
Assets	-	( £)	( £)	( £)	( £)	( £)
Non - Current Assets	-	-	-	-	-	-
Land at cost	-	540,000	256,500	202,500	-	999,000
Investment in Beta	1	216,000	-	-	(216,000)	-
Investemtn in Gamma	1	156,600	-	-	(156,600)	-
Goodwill	-	-	-	-	-	310500
Current Assets	-	-	-	-	-	-
Inventories	-	162,000	54,000	135,000	-	351,000
Trade receivable	-	108,000	72,900	91,800	-	272,700
Dividend receivable from Beta	4	10,800	-	-	(10,800)	-
Dividend receivable from Gamma	4	1,620	-	-	(1,620)	-
Current account Beta	3	10,800	-	-	(10,800)	-
Current account Gamma	3	13,500	-	-	(13,500)	-
Cash	-	237,600	62,100	67,500	-	367,200
Total current assets	-	544,320	189,000	294,300	-	990,900
Total assets	-	1,456,920	445,500	496,800	-	2,300,400
Equity and Liabilities	-	-	-	-	-	-
£ 1 shares	1 & 2	540,000	67,500	27,000	94,500	540,000
Retained earnings	2	769,500	329,400	391,500	339,930	1,150,470
Non Conrolling interest	2	-	-	-	-	372,330
Current Liabilities	-	-	-	-	-	-
Trade payables	-	93,420	24,300	59,400	-	177,120
Dividned payable	4	54,000	13,500	5,400	12,420	60,480
Current account Alpha	3	-	10,800	13,500	24,300	-
Total equity and Liabilities	-	1,456,920	445,500	496,800	61,830	2,300,400