Alpha paid £405,000 to acquire 300,000 shares of £1 each in Beta plc, immediately after Beta’s incorporation. The Statements of financial position of both companies have been prepared as shown.

You are informed that as at 31 December 2012:

(a) Trade receivables reported by Alpha includes £112,000 due from Beta.

(b) Goods invoiced by Alpha at £48,000 and a remittance of £24,000 by Beta are in transit.

(c) Inventory in the hands of Beta includes those invoiced to it by Alpha at £72,000.

(d) Alpha invoices Beta at prices calculated to produce a gross profit ratio of 25%.

(e) There has been no impairment of goodwill.

Required: 

Prepare the Consolidated Statement of financial position of the Alpha group as at 31 December 2012.

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Statements of financial position as at 31 December 2012 Non-current assets: Property, plant and equipment at cost Accumulated depreciation Investments Current assets: Inventory Trade receivables Cash and bank Alpha £'000 960 420 (240) (160) 720 430 Beta £'000 484 319 17 1,970 260 30 188 296 16 790