Harry plc and Potter Limited prepare their financial statements to 31 December each year. Extracts from...

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Harry plc and Potter Limited prepare their financial statements to 31 December each year. Extracts from their 2019 financial statements are shown below: Statement of Financial Position as at 31 December 2019 Harry plc Potter Limited '000 '000 Non-current Assets Property, plant and equipment 500,000 375,000 Investment in Potter Limited 180,000 - Current Assets Inventory 106,000 52,500 Trade receivables 80,000 120,000 Current account with Potter Limited 100,000 - Bank 40,000 22,500 1,006,000 570,000 Equity and Liabilities Equity and Reserves 1 ordinary share capital 208,000 75,000 Share premium 13,000 2,000 Retained earnings 570,000 275,100 Non-current Liabilities 5% Loan stock 150,000 75,000 Current Liabilities Trade payables 60,000 50,700 Taxation 5,000 2,000 Current account with Harry plc - 90,200 1,006,000 570,000 Additional Information 1. Harry plc acquired 60,000,000 of the 1 ordinary share capital of Potter Limited on 1 January 2019. On 1 January 2019, the fair value of the net assets of Potter Limited was the same as their book value and retained earnings were 71,250,000. 2. On 30 December 2019, Potter Limited transferred 9,800,000 to Harry plc. However, this was not received by Harry plc until 5 January 2020. 3. At the date of acquisition, the fair value of land in Potter Limited was understated by 520,000. 4. During the year ended 31 December 2019, Harry plc sold goods to Potter Limited for 250,000. The goods were sold at a margin of 20%. Half of these goods are still included in inventories at 31 December 2019. 4 Requirement Prepare the consolidated statement of financial position of Harry plc as at 31 December 2019. Harry plc and Potter Limited prepare their financial statements to 31 December each year. Extracts from their 2019 financial statements are shown below: Statement of Financial Position as at 31 December 2019 Harry plc Potter Limited '000 '000 Non-current Assets Property, plant and equipment 500,000 375,000 Investment in Potter Limited 180,000 - Current Assets Inventory 106,000 52,500 Trade receivables 80,000 120,000 Current account with Potter Limited 100,000 - Bank 40,000 22,500 1,006,000 570,000 Equity and Liabilities Equity and Reserves 1 ordinary share capital 208,000 75,000 Share premium 13,000 2,000 Retained earnings 570,000 275,100 Non-current Liabilities 5% Loan stock 150,000 75,000 Current Liabilities Trade payables 60,000 50,700 Taxation 5,000 2,000 Current account with Harry plc - 90,200 1,006,000 570,000 Additional Information 1. Harry plc acquired 60,000,000 of the 1 ordinary share capital of Potter Limited on 1 January 2019. On 1 January 2019, the fair value of the net assets of Potter Limited was the same as their book value and retained earnings were 71,250,000. 2. On 30 December 2019, Potter Limited transferred 9,800,000 to Harry plc. However, this was not received by Harry plc until 5 January 2020. 3. At the date of acquisition, the fair value of land in Potter Limited was understated by 520,000. 4. During the year ended 31 December 2019, Harry plc sold goods to Potter Limited for 250,000. The goods were sold at a margin of 20%. Half of these goods are still included in inventories at 31 December 2019. 4 Requirement Prepare the consolidated statement of financial position of Harry plc as at 31 December 2019.

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