Alpha plc paid £760,000 to acquire two-thirds of Beta plc’s equity on 1 April 2010 when Beta plc had an accumulated profit of £90,000.

You are informed as follows:

(a) During the year ended 31 March 2012, Alpha plc invoiced goods to Beta plc at £360,000.

(b) As at 31 March 2012 Beta plc’s inventory included £32,000 of goods invoiced to it by Alpha plc; while £16,000 more of these goods were in transit.

(c) Alpha invoices Beta at cost plus a third.

Required: 

The Consolidated Statement of income for the Alpha group for the year ended 31 March 2012.

Transcribed Image Text:

Statements of income year ended 31.3.2012 Sales revenue Cost of sales Gross profit Expenses Operating profit Dividend from Beta Profit before taxation Taxation Profit after tax Movement of equity: Balance b/f Profit after tax Dividend paid Balance c/d Alpha Beta £'000 £'000 1,760 (942) 818 (482) 336 16 352 (72) 280 £'000 501 280 (90) 691 1,180 (756) 424 (275) 149 149 (29) 120 £'000 114 120 (24) 210