Alpha plc acquired 800,000 ordinary shares of 50p each in Beta plc for £760,000 on 1 April 2010 when:

(i) Beta had an accumulated profit of £90,000.

(ii) The market value of Beta’s land was £460,000.

(iii) Beta’s shares were quoted at 92 pence each.

The Statements of financial position of both companies appear as shown. You are informed as follows:

(a) Receivables reported by Alpha include £42,000 due from Beta. The corresponding amount reported by Beta is £18,000. Goods invoiced by Alpha at £16,000 are in transit. The remainder of the difference arose from cash in transit.

(b) £32,000 of goods reported by Beta have been invoiced to it by Alpha.

(c) Alpha invoices Beta at cost plus a third.

Required: 

The Consolidated Statement of financial position of the Alpha group as at 31 March 2012.

The par value of each share is 50p.

Transcribed Image Text:

Statements of financial position as at 31 March 2012 Non-current assets: Land at cost Other tangible assets Investments Current assets: Inventory Trade receivables Cash and bank Alpha £'000 400 720 780 544 386 42 2,872 Beta £'000 100 450 60 240 198 15 1,063