From the following balance sheets and further information you are to draw up a consolidated balance sheet
Question:
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
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To create a consolidated balance sheet for Parent Ltd and Subsidiary Ltd we need to eliminate any intercompany transactions and combine the accounts from both balance sheets From the provided informat...View the full answer
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Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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