Alpha acquired all of Beta’s equity for £780,000 on 1 July 2009 when:

(i) Beta’s retained earnings were £125,000.

(ii) Beta’s investments had a market value of £200,000.

You are further informed as follows:

(a) Beta’s inventory includes at £90,000 goods invoiced to it by Alpha. These goods have cost Alpha £60,000.

(b) Receivables reported by Alpha includes an amount of £80,000 due from Beta. Beta’s payables, on the other hand, includes only £65,000 as due to Alpha. The difference arises because of cash in transit.

Required: 

Prepare the Consolidated Statement of financial position of the Alpha group as at 30 June 2012.

Transcribed Image Text:

Statements as at 30 June 2012 Non-current asset Investments of financial position Current assets: Inventory Trade receivables Cash and bank Alpha £'000 740 820 398 412 38 2,408 Beta £'000 580 140 245 315 20 1,300