On 1 January 2015, Poplar bought 25,000 of the 100,000 shares in Ash for 20,000. The retained
Question:
On 1 January 2015, Poplar bought 25,000 of the 100,000 shares in Ash for £20,000. The retained earnings of Ash Ltd at 1 January 2015 were £12,000.
The financial statements for the year ended 31 December 2017 are below:
| Poplar £’000 | Ash £’000 |
Revenue | 143,000 | 29,000 |
Cost of Sales | (65,000) | (16,000) |
Gross Profit | 78,000 | 13,000 |
Operating expenses | (34,000) | (5,800) |
Operating profit | 44,000 | 7,200 |
Dividend from Ash | 500 |
|
Profit before tax | 44,500 | 7,200 |
Tax | (6,200) | (200) |
Profit for the year | 38,300 | 7,000 |
Poplar £’000 | Ash £’000 | |
Property plant & equipment | 160,800 | 94,000 |
Investment in A at cost | 20,000 | |
Current assets | 52,000 | 41,600 |
232,800 | 135,600 | |
Share capital | 180,000 | 100,000 |
Retained earnings | 45,800 | 30,000 |
225,800 | 130,000 | |
Liabilities | 7,000 | 5,600 |
| 232,800 | 135,600 |
Required:
Prepare the consolidated accounts for the year to 31 Dec. 2017.
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett