Question No 2 on Group Accounts

The statement of the financial position of P Ltd and of its subsidiary S Ltd have been made up to 30 June
2020. P Ltd has owned all the ordinary shares (100%) and 40% of the loan stock of S Ltd since its
incorporation.

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020

P Ltd S Ltd
$ $ $ $
Non-Current Assets
Property, plant and equipment 120000 100000
Investment in S Ltd at cost:
80000 Ordinary shares of $1 each 80000
$20000 of 12% loan stock in S Ltd 20000
220000
Current Assets:
Inventories 50000 60000

Receivables 40000 30000

Current account with S Ltd 18000
Cash 4000 6000
112000 96000
Total Assets 332000 196000
Equity and Liabilities:
Equity:
Ordinary shares of $1 each, fully paid 100000 80000
Retained earnings 95000 28000
195000 108000
Non-Current Liabilities:
10% Loan stock 75000
12% Loan stock 50000
Current Liabilities:
Payables 47000 16000
Taxation 15000 10000
Current account with P Ltd 12000
62000 38000
Total equity and liabilities 332000 196000
The difference on current account arises because of goods in transit.

Required:
Prepare the consolidated statement of financial position.