P plc acquired 80% of the ordinary share capital of S plc for £150,000 and 50% of the issued 10% cumulative preference shares for £10,000, both purchases being effected on 1 May 2017. There have been no changes in the issued share capital of S plc since that date. The following balances are taken from the books of the two companies at 30 April 2018:

The following additional information is available:
(a) Inventory of P plc includes goods purchased from S plc for £20,000. S plc charged out this inventory at cost plus 25%.
(b) A proposed dividend of £10,000 by S plc includes a full year’s preference dividend. No interim dividends were paid during the year by either company.
(c) Creditors of P plc include £6,000 payable to S plc in respect of inventory purchases. Debtors of S plc include £10,000 due from P plc. The parent sent a cheque for £4,000 to its subsidiary on 29 April 2018 which was not received by S plc until May 2018.
(d) At 1 May 2017 the balances on the reserves of S plc were as follows:

Required:
(a) Prepare a consolidated statement of financial position for P plc and its subsidiary S plc at 30 April 2018. 

Notes to the accounts are not required. Workings must be shown.
(b) Explain what is meant by the term ‘cost of control’ and justify your treatment of this item in the above accounts.

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Ordinary share capital (£1 shares) 10% cumulative preference shares (50p shares) Share premium account General reserve Retained profits Trade accounts payable Taxation Depreciation Freehold property Plant and machinery Freehold property at cost Plant and machinery at cost Investment in S plc Inventory Accounts receivable Cash P plc £000 300 20 68 65 35 50 40 100 678 86 272 160 111 30 19 678 Splc £000 100 20 10 15 । । 45 22 30 15 48 305 55 168 65 15 305