At the start of business on 1 January 2020, the statements of financial position of A1 Ltd and A2 Ltd were as follows:

On 1 January 2020, A1 Ltd acquired 100% of the share capital of A2 Ltd for £225,000. The fair value of A2 Ltd's non-current assets on that date was £150,000. All other assets and liabilities were shown at fair value in the company's statement of financial position. There were no other transactions on 1 January 2020.

Required:

(a) Prepare a consolidated statement of financial position as at the close of business on 1 January 2020, assuming that the purchase consideration of £225,000 was paid in cash.
(b) Prepare a consolidated statement of financial position as at the close of business on 1 January 2020, now assuming that the purchase consideration of £225,000 was settled by means of an issue of 150,000 £1 ordinary shares in A1 Ltd at a premium of 50p per share.

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Assets Non-current assets Current assets Equity Ordinary share capital Retained earnings Liabilities Current liabilities Al Ltd £000 510 325 835 500 185 685 150 835 A2 Ltd £000 125 75 200 100 60 160 40 200