Draw up a consolidated balance sheet as at 31 December 20X7 from the following: At the balance
Question:
Draw up a consolidated balance sheet as at 31 December 20X7 from the following:
At the balance sheet date, Sonny owes Pop and Mom £1,600.
During the year Pop and Mom sold goods which had cost £3,000 to Sonny for £4,800. Threequarters of these goods had been sold by Sonny by the balance sheet date.
Transcribed Image Text:
Investment in subsidiary: 55,000 shares bought 31.12.20X6 Fixed assets Stock Debtors Bank Less: Creditors Pop and Mom Balance Sheet as at 31 December 20X7 Share capital Profit and loss: As at 31.12.20X6 Less Loss for 20X7 £ 22,000 29,000 8,000 59,000 (6,000) 84,000 (27,000) £ 55,000 124,000 179,000 53,000 232,000 175,000 57,000 232,000
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To create a consolidated balance sheet for Pop and Mom and their subsidiary Sonny as at 31 December 20X7 we need to go through several steps including eliminating intercompany balances adjusting for t...View the full answer
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Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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