H Ltd has one subsidiary, S Ltd. The company has held a controlling interest for several years. The latest financial statements for the two companies and the consolidated financial statements for the H Group are as shown below:

Goodwill of £410,000 was written off at the date of acquisition following an impairment review.

Required:

(a) Calculate the percentage of S Ltd which is owned by H Ltd.

(b) Calculate the value of sales made between the two companies during the year.

(c) Calculate the amount of unrealised profit which had been included in the inventory figure as a result of inter-company trading and which had to be cancelled on consolidation.

(d) Calculate the value of inter-company receivables and payables cancelled on consolidation.

(e) Calculate the balance on S Ltd’s retained earnings when H Ltd acquired its stake in the company. Non-controlling interests are measured using Method1.

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Statements of comprehensive income for the year ended 30 September 20X4 H Group S Ltd H Ltd £000 £000 £000 4,000 2,200 5,700 Turnover Cost of sales (1.100) (960) (1,605) 2,900 1,240 4,095 Administration Distribution (420) (170) (130) (95) (550) (265) Dividends received 180 Profit before tax 2,490 1,015 3,280 Income tax (620) (335) (955) Profit after tax 1,870 680 2,325 Attributable to Equity shareholders of H Ltd Non-controlling shareholders in S Ltd 2,155 170 2,325