Draw up a consolidated statement of financial position as at 31 December 2017 from the following:

At the date of the statement of financial position, Daughter Ltd owes Mum and Dad £2,200. 

During the year Mum and Dad sold goods which had cost £5,000 to Daughter Ltd for £7,000. Fourfifths of these goods had been sold by Daughter Ltd by the date of the statement of financial position.
The amount paid for the investment in Daughter Ltd was £135,000. The fair value of the net assets of Daughter Ltd at that time was £150,000 and the £15,000 gain from a bargain purchase was recognised immediately in Mum and Dad’s profit or loss.

Transcribed Image Text:

Mum and Dad's Statement of Financial Position as at 31 December 2017 Non-current assets Investment in subsidiary: 90,000 shares bought 31.12.2016 Other non-current assets Inventory Accounts receivable Bank Current liabilities: Accounts payable Share capital Retained profits: As at 31.12.2016 Less Loss for 2017 Non-current assets Inventory Accounts receivable Bank Current liabilities: Accounts payable £ Daughter's Statement of Financial Position as at 31 December 2017 £ Share capital Retained profits: As at 31.12.2016 Profit for 2017 37,000 46,000 13,000 172,000 (42,000) 55,000 64,000 4,000 50,000 26,000 £ 135,000 170,000 305,000 96,000 401,000 (11,000) 390,000 260,000 130,000 390,000 £ 60,000 123,000 183,000 (7,000) 176,000 100,000 76,000 176,000