Red plc acquired 80,000 shares in Blue plc on 31st December 2015. At that date the retained profit of Blue plc was £200,000 and the revaluation reserve was £50,000. The summarised statements of financial position the two companies at 31st December 2018 are as follows:

	Red plc	Blue plc
Investment in Blue	315000
Non-current assets	400000	250000
Net current assets	135000	200000
	850000	450000
Share captial	250000	100000
Revaluation reserve	100000	50000
Retained profit	500000	300000
	850000	450000

Prepare the statement of financial position for the Red Group as at 31st December 2018.

Answer rating: 100% (QA)

Heres the statement of financial position for the Red Gro... View the full answer