From the following balance sheets and further information you are to draw up a consolidated balance sheet as at 31 December 20X3.

During the year Parent Ltd had sold to Subsidiary Ltd for £70,000 a fixed asset which had cost it £60,000. Subsidiary Ltd has written off 20 per cent of the amount it paid, i.e. £14,000 as depreciation for 20X3.

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Investment in Subsidiary: 400,000 shares bought 31.12.20X2 Fixed assets Less Depreciation Current assets Share capital Profit and loss: As at 31.12.20X2 Parent Ltd Balance Sheet as at 31 December 20X3 Add Profit for 20X3 £ 450,000 (200,000) 150,000 40,000 f 650,000 250,000 90,000 990,000 800,000 190,000 990,000