Maureen incorporated Beta on 1 January 2011 investing £450. She recorded £400 in the Share capital account and £50 in a Share premium account. On the same day, immediately after incorporation, Alpha paid Maureen £480 to acquire all her shares in Beta. A year later both companies drafted their own Statements of financial position as shown.

Required: The Consolidated Statement of financial position of the Alpha group as at 31 December 2011. Assume that goodwill is not impaired by the end of the first year after acquisition.

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Statements of financial position as at 31 December 2011 Alpha £ Non-current assets Investments in Beta Current assets Ordinary shares Share premium Retained earnings Current liabilities 920 480 240 1,640 £ 900 90 210 1,200 440 1,640 Beta £ 440 180 620 £ 400 50 90 540 80 620