BS 420 Exam Questions

BS TEST ONE 420 – TUTORAIL
PRINCE DANIELS, TUTOR

…………………………………………………………………………………………………………
QUESTION ONE
On 1 January 20X0 Taonga Ltd acquired 90% of the ordinary shares of a French subsidiary
Lauren SA. At that date the balance on the retained earnings of Lauren SA was €10,000. The non-
controlling interest in Lauren was measured using proportionate method. No shares have been
issued by Lauren since acquisition. The summarised statements of comprehensive income and
statements of financial position of Taonga Ltd and Lauren SA at 31 December 20X2 were as
follows:
Statements of comprehensive income for the year ended 31 December 20X2
Taonga Ltd Lauren SA
£000 €000
Sales 317,200 200,000
Cost of sales 170,000 100,000
Gross profit 147,200 100,000
Dividend received from Lauren SA 1,800 NIL
Administration 30,000 30,000
Other expenses 15,000 7,000
Interest paid 6,000 3,000
Total expenses 51,000 40,000
Profit before taxation 98,000 60,000
Taxation 21,000 15,000
Profit after taxation 77,000 45,000
Dividend paid 20,000 10,000
Statement of financial position as at 31 December 20X2
£000 €000
Non-current assets 94,950 150,000
Investment in Lauren SA 41,050
Current assets:
Inventories 60,000 12,000
Trade receivables 59,600 40,000
Lauren SA 2,400
PRINCE DANIELS – 2024

Cash 11,000 11,000
Total assets 269,000 213,000
Current liabilities:
Trade payables 45,000 18,000
Taonga Ltd 12,000
Taxation 21,000 15,000
Non- current liabilities
Debentures 40,000 10,000
Equity
Share capital 80,000 60,000
Share premium 6,000 20,000
Revaluation reserve 10,000 12,000
Retained earnings 67,000 66,000
269,000 213,000
The following information is also available:
(i) The revaluation reserve in Lauren SA arose from the revaluation of non-current assets on
1/1/20X2.
(ii) No impairment of goodwill has occurred since acquisition.
(iii) Exchange rates were as follows:
At 1 January 20X0 £1 = €2
Average for the year ending 31 December 20X2 £1 = €4
At 31 December 20X1/1 January 20X2 £1 = €3
At 31 December 20X2 £1 = €5
Required:
Assuming that the functional currency of Lauren SA is the euro, prepare the consolidated accounts
for the Taonga group at 31 December 20X2.
………………………………………………………………………………………………………………..
QUESTION TWO
The draft statements of financial position of P Co, S Co and SS Co on 30 June 20X7 were as
follows.
P Co S Co SS Co
Assets $ $ $
Non-current assets

Tangible assets 105,000 125,000 180,000
Investments, at cost
80,000 shares in S Co 120,000 – –
60,000 shares in SS Co – 110,000 –
Current assets 80,000 70,000 60,000
305,000 305,000 240,000
Equity and liabilities
Equity
Ordinary shares of $1 each 80,000 100,000 100,000
Retained earnings 195,000 170,000 115,000
275,000 270,000 215,000
Payables 30,000 35,000 25,000
305,000 305,000 240,000
(i) P Co acquired its shares in S Co on 1 July 20X4 when the reserves of S Co stood at
$40,000; and
(ii) S Co acquired its shares in SS Co on 1 July 20X5 when the reserves of SS Co stood at
$50,000.
(iii) It is the group's policy to measure the non-controlling interest at fair value at the date of
acquisition. The fair value of the non-controlling interests in S on 1 July 20X4 was $29,000.
The fair value of the 52% non- controlling interest on 1 July 20X5 was $80,000.
Required
Prepare the draft consolidated statement of financial position of P Group at 30 June 20X7.
Note. Assume no impairment of goodwill.
……………………………………………………………………………………………………………….
QUESTION THREE
X, a public limited company, acquired 100 million ordinary shares of $1 in Y , a public limited
company on 1 April 20X6 when the retained earnings were $120 million. Y acquired 45 million
ordinary shares of $1 in Z, a public limited company, on 1 April 20X4 when the retained earnings
were $10 million. On 1 April 20X4 there were no material differences between the book values and
the fair values of Z. On 1 April 20X6, the retained earnings of Z were $20 million.
Y acquired 30% of the ordinary shares of W , a limited company, on 1 April 20X6 for $50 million
when the retained earnings of W were $7 million. Y is in a position to exercise significant influence
over W and there were no material differences between the book values and the fair values of W
at that date.
There had been no share issues since 1 April 20X4 by any of the group companies. The following
statements of financial position relate to the group companies as at 31 March 20X9.

X Y Z W
$m $m $m $m
Property, plant and equipment 900 100 30 40
Intangible assets 30
Investment in Y 320
Investment in Z 90
Investment in W 50
Net current assets 640 360 75 73
1,860 630 105 113
Share capital 360 150 50 80
Share premium 250 120 10 6
Retained earnings 1,050 210 30 17
1,660 480 90 103
Non-current liabilities 200 150 15 10
1,860 630 105 113
(i) The following fair value table sets out the book values of certain assets and liabilities of the
group companies together with any accounting policy adjustments to ensure consistent
group policies at 1 April 20X6.
Book value Accounting Fair value Value after
Policy adj. adj. adjustments
$m $m $m $m $m $m $m $m
Y Z Y Z Y Z Y Z
Property, plant and equipment 90 20 30 10 120 30
Intangible non-current assets 30 (30) -
Inventory 20 12 2 (8) (5) 14 7
Allowance for receivables (15) (9) (24)
These values had not been incorporated into the financial records. The group companies have
consistent accounting policies at 31 March 20X9, apart from the non-current intangible assets in
Y's books
(ii) During the year ended 31 March 20X9, Z had sold goods to X and Y . At 31 March 20X9,
there were $44 million of these goods in the inventory of X and $16 million in the inventory
of Y. Z had made a profit of 25% on selling price on the goods.

(iii) On 1 June 20X7, an amount of $36 million was received by Y from an arbitration award
against Q. This receipt was secured as a result of an action against Q prior to Y's
acquisition by X but was not included in the assets of Y at 1 April 20X6.
(iv) The group writes goodwill off immediately to reserves. However it has decided to bring its
accounting policies into line with IFRSs and not local accounting policies. Thus goodwill will
be capitalised under IFRS 3 Business combinations. At 31 March 20X6, property, plant and
equipment had a remaining useful life of 10 years.
(v) (v) It is the group's policy to value the non-controlling interest at its proportionate share of
the fair value of the subsidiary's identifiable net assets.
Required
(a) Prepare a consolidated statement of financial position as at 31 March 20X9 for the X
group.
(b) Explain how the change in accounting policy as regards goodwill should be dealt with in
the financial statements of the X group under International Financial Reporting Standards.
All calculations should be rounded to the nearest million dollars.
……………………………………………………………………………………………………………..
QUESTION FOUR
Standard Ltd acquired 80% of Odense Ltd for K520, 000 on 1 January 2014 when the
retained reserves of Odense Ltd were 2, 100, 000 Crore (C).
The following are the financial statements of the two companies at 31 December
2016. Statements of Financial Position as at 31 December 2016
Standard Odense
K’ 000 C’ 000
Assets
Non-current assets
Property, plant and equipment 1,285 4,400
Investment in Odense 520 -
1,805 4,400
Current assets 410 2,000
Total Assets 2,215 6,400
Capital and liabilities

Share Capital 500 1,000
Retained reserves 1,115 4,300
1,615 5,300
Non-current liabilities 200 300
Current Liabilities 400 800

Total equity and liabilities 2,215 6,400
Statements of Profit or loss and other comprehensive income for the year ending 31
December 2016

Standard Odense
K’000 C’000
Revenue 1,125 5,200
Cost of sales (410)
Gross profit 715
Other expenses (180) (910)
Dividend from Odense 40 -
Profit before tax 575 1,990

Tax expense (180) (640)
Profit for the year 395 1,350
Statements of Changes in Equity for the year (Extract for retained reserves)
Standard Odense
K’000 C’000
Balance at 1 January 2016 915 3,355
Dividends paid (195) (405)
Profit for the year 395 1,350
Balance as at 31 December 2016 1,115 4,300
Exchange Rates were as follows:

C to K1
1 January 2014 9.4
31 December 2015 8.8
31 December 2016 8.1
Average 2016 8.4
Additional Information
1. An impairment test conducted at the year-end revealed impairment losses of C 168,
000 relating to Odense’s recognised goodwill. No impairment losses had previously been
recognised.
2. The translation difference in the consolidated financial statements relating to relating
to the translation of the financial statements of Odense at 31 December 2016 (excluding
goodwill) were K27, 000.
Retained reserves of Odense in Odense’s separate financial statements in the post-
acquisition period to December 2015 as translated amounted to K138, 000. Dividends
charged to retained earnings in 2016 were paid on 31 December 2016.
3. It is the group’s policy to value non-controlling interest at its proportionate share value
of the subsidiary’s net assets.

Required
Prepare the consolidated statement of financial position and statement of profit or
loss and other comprehensive income for the Standard Group for the year ended 31
December 2016.
…………………………………………………………………………………………………………….
QUESTION FIVE
The following are the statements of comprehensive income of four companies for the year ended
31 October 2006, the end of their most recent financial year
Income statements for the year ended 31 October 2006
Sulu Peter Chilu Jemilo
$000 $000 $000 $000
Revenue 8,890 4,580 4,470 2,760
Cost of sales (3,000) (2,200) (1,800) (1,700)
Gross profit 5,890 2,380 2,670 1,060
Distribution costs (900) (540) (1,010) (230)
Administrative expenses (1,060) (990) (1,100) (250)
Operating profit 3,930 850 560 580
Dividends receivable 410 130
Interest receivable 230 321 150
Interest payable (1,188) (455) (380)……………
Net profit before taxation 3,382 846 330 580
Income tax expense (1,000) (200) (80) (100)
Net profit after taxation 2,382 646 250 480
Earnings per share (in cents) 11.9 4.0 2.5 2.4
The following additional information is available:
(a) All shares issued by the companies have a face value of $1.
(b) The companies made the following dividend payments to shareholders during the year ended
31 October 2006:
Sulu Peter Chilu Jemilo

Preference dividend $000 $000 $000 $000
– final for 2005, paid March 2006 400 120
– interim for 2006, paid September 2006 400 120

Ordinary dividend
– final for 2005, paid March 2006 800 180 54 76
– interim for 2006, paid September 2006 800 180 54 76
Under IAS 32 Financial Instruments: Disclosure and Presentation dividends on preference shares
have been included in interest payable.
(c) Sulu owns 60% of the ordinary shares in Peter, 40% of the shares in Chilu and 25% of the
sharesin Jemilo. Peter is a subsidiary of Sulu, Chilu is an associate of Sulu, and Jemilo is a joint
venture.
(d) During the year ended 31 October 2006 Sulu sold inventory which had cost $640,000 to Peter
ata mark up of 25%. Peter had resold 65% of these items by 31 October 2006.
(e) On 1 July 2006 Peter made a long term loan of $500,000 to Sulu. The loan bears interest at
12%a year payable every six months in arrears.
Required:
Prepare, in so far as the information given permits, the consolidated statement of comprehensive
income of Sulu for the year ended 31 October 2006. Your statement of comprehensive income
should include a figure for earnings per share with a supportive disclosure note.
…………………………………………………………………………………………………………….
QUESTION SIX
The statements of comprehensive income for Chilu plc, Mapalo Ltd and
Tasha Ltd for the year ended 31 December 20X9 were as follows:
Chilu plc Mapalo Ltd Tasha Ltd
K K K
Revenue 825,000 220,000 82,500
Cost of sales (616,000) (55,000) (8,250)
Gross profit 209,000 165,000 74,250
Administration costs (33,495) (18,700) (3,850)
Distribution costs (11,000) (14,300) (2,750)
Dividends receivable from
Mapalo and Tasha 4,620 ………………………….

Profit before tax 169,125 132,000 67,650
Income tax (55,000) (33,000) (11,000)
Profit after tax 114,125 99,000 56,650
(a) Chilu plc acquired 80% of Mapalo Ltd for K27,500 on 1 January 20X3, when
Mapalo Lid’s retained earnings were K22,000 and share capital was K5,500.
(b) During the year, Mapalo Ltd sold goods costing K2,750 to Chilu plc for K3,850.
At the year end, 10% of these goods were still in Chilu plc’s inventory.
(c) Chilu plc acquired 40% of Tasha Ltd for K100,000 on 1 January 20X5, when
Tasha Ltd’s share capital and reserves totalled K41,250 (share capital
consisted of 11,000 50c shares). During the year Tasha Ltd sold goods costing
K1,650 to Chilu plc for K2,200. At the year end, 50% of these goods were still
in Chilu plc’s inventory.
(d) Goodwill in Mapalo Ltd had suffered impairment charges in previous years
totalling K2,200 and Goodwill in Tasha Ltd impairment charges totalling
K7,700. Impairment has continued reducing the Goodwill in Mapalo by K550
and the Goodwill in Tasha by K3,850.
(e) Chilu plc includes in its revenue management fees of K5,500 charged to
Mapalo Ltd and K2,750 charged to Tasha Ltd. Both companies treat the charge
as an administration cost.
Required:
Prepare Chilu plc’s consolidated statement of comprehensive income for the year
ended 31 December 20X9

……………………………………………………………………………………………………
QUESTION SEVEN
The following are the statements of financial position of Garden plc, its
subsidiary Rose Ltd and its associate Petal Ltd:
Statements of financial position as at 31 December 20X9
Garden Rose Petal
ASSETS K K K
Non-current assets
Land at cost 240,000 84,000
Land at valuation 180,000
Investment in Rose 300,000
Investment in Petal 72,000
Investments 18,000
Current assets
Inventories 15,000 99,000 5,400
Trade receivables 33,000 98,400 1,200
Current account – Rose 18,000
Current account – Petal 2,400
Cash 6,600 67,200 300
Total current assets 75,000 264,600 6,900
Total assets 705,000 444,600 90,900
EQUITY AND LIABILITIES
K1 shares 300,000 120,000 30,000

Revaluation reserve 90,000
570,000 426,000 87,600
Current liabilities
Trade payables 135,000 3,600 900
Current account – Garden — 15,000 2,400
Total equity and liabilities 705,000 444,600 90,900
Additional Information
(i) On 1 January 20X3 Garden plc acquired 75% of Rose Ltd for K300,000
when Rose’s share capital and reserves were K252,000. At the date of
acquisition, the net book value of Rose’s non-current assets were
K90,000. Rose immediately included the revaluation in its statement of
financial position.
(ii) On 1 January 20X5 Garden acquired 20% of Petal Ltd for K72,000
when the fair value of Petal’s net assets were K42,000.
(iii) Goodwill has been impaired in Rose by K77,700 and in Petal by
K31,800.
(iv) At the year end, Garden plc has inventory acquired from Rose and
Petal. Rose had invoiced the inventory to Garden for K6,000 – the cost
to Rose had been K1,200 – and Petal had invoiced Garden for K3,000
– the cost to Petal had been K1,800.
Required:
Prepare Garden plc’s consolidated statement of financial position as at

31.12.20X9.

…………………………………………………………………………………………………………….
QUESTION EIGHT
Alpha has owned 75% of the equity shares of Beta since the incorporation of Beta. Therefore
Alpha has prepared consolidated financial statements for some years. On 1 July 20X6 Alpha
purchased 40%of the equity shares of Gamma. The statements of comprehensive income and
summarised statements of changes in equity of the three entities for the year ended 30
September 20X6 are given below
Statements of comprehensive income
Alpha Beta Gamma
$’000 $’000 $’000
Revenue (Note 1) 150,000 100,000 96,000
Cost of sales (110,000) (78,000) (66,000)
Gross profit 40,000 22,000 30,000
Distribution costs (7,000) (6,000) (6,000)
Administrative expenses (8,000) (7,000) (7,200)
Profit from operations 25,000 9,000 16,800
Investment income (Note 2) 6,450 Nil Nil
Finance cost (5,000) (3,000) (4,200)
Income tax expense (7,000) (1,800) (3,600)
Net profit for the period 19,450 4,200 9,000
Summarised statements of changes in equity
Balance at 1 October 20X5 122,000 91,000 82,000
Net profit for the period 19,450 4,200 9,000
Dividends paid on 31 July 20X6 (6,500) (3,000) (5,000)
Balance at 30 September 20X6 134,950 92,200 86,000
Notes to the financial statements
Note 1 – Inter-company sales
Alpha sells products to Beta and Gamma, making a profit of 25% on the cost of the products
sold. All the sales to Gamma took place in the post-acquisition period. Details of the purchases of
the products by Beta and Gamma, together with the amounts included in opening and closing
inventories in respect of the products, are given below:

Purchased in Included in Included in closing
year opening inventory inventory
$’000 $’000 $’000
Beta 20,000 2,000 3,000
Gamma 10,000 Nil 1,500
There were no other inter-company sales between Alpha, Beta or Gamma during the period.
Note 2 – Investment income
Alpha’s investment income includes dividends received from Beta and Gamma and interest
receivable from Beta. The dividend received from Gamma has been credited to the statement of
comprehensive income of Alpha without time apportionment. The interest receivable is in respect
of a loan of $20 million to Beta at a fixed rate of interest of 6% per annum. The loan has been
outstanding for the whole of the year ended 30 September 20X6.
Note 3 – Details of acquisitions by Alpha
Entity Date of Fair value adjustment
Acquisition at date of acquisition
$’000
Beta 1 July 20X5 Nil
Gamma 1 June 20X6 6,400
There has been no impairment of the goodwill arising on the acquisition of Beta or of the
investment in Gamma since the dates of acquisition of either entity.
The fair value adjustment has the effect of increasing the fair value of property, plant and
equipment above the carrying value in the individual financial statements of Gamma. Group
policy is to depreciate property, plant and equipment on a monthly basis over its estimated useful
economic life.
The estimated life of the property, plant and equipment of Gamma that was subject to the fair
value adjustment is five years, with depreciation charged against cost of sales.
Note 4 – other information
The purchase of shares in Gamma entitled Alpha to appoint a representative to the board of
directors of Gamma. This meant that Alpha was potentially able to participate in, and significantly
influence, the policy decisions of Gamma.
● No other investor is able to control the operating and financial policies of Gamma, but on one
occasion since 1 July 20X6 Gamma made a policy decision with which Alpha did not fully agree.
● Alpha has not entered into a contractual relationship with any other investor to exercise joint
control over the operating and financial policies of Gamma.
● All equity shares in Beta carry one vote at general meetings.

● The policy of Alpha regarding the treatment of equity investments in its consolidated financial
statements is as follows:
– Subsidiaries are fully consolidated.
– Joint ventures are proportionally consolidated.
– Associates are equity accounted.
– Other investments are treated as available for sale financial assets
Your assistant has been reading the working papers for the consolidated financial statements of
Alpha for previous years. He has noticed that Beta has been consolidated as a subsidiary and
has expressed the view that this must be because Alpha owns more than 50% of its shares. He
has further stated that Gamma should be treated as an available-for-sale financial asset since
Alpha is unable to control its operating and financial policies.
Required
Prepare the consolidated statement of comprehensive income and consolidated statement of
changes in equity of Alpha for the year ended 30 September 20X6. Notes to the consolidated
statement of comprehensive income are not required. Ignore deferred tax
…………………………………………………………………………………………………………….
QUESTION NINE
The following are the statements of financial position of Natasha plc, its subsidiary Joshua Ltd
and its associate Chilufya Ltd:
Natasha Joshua Chilufya
ASSETS K K K
Non-current assets
Land at cost 240,000 84,000
Land at valuation 180,000
Investment in Joshua 300,000
Investment in Chilufya 72,000
Investments 18,000
Current assets
Inventories 15,000 99,000 5,400

Current account – Joshua 18,000
Current account – Chilufya 2,400
Cash 6,600 67,200 300
Total assets 705,000 444,600 90,900
K1 shares 300,000 120,000 30,000
Revaluation reserve 90,000
570,000 426,000 87,600
Current liabilities
Trade payables 135,000 3,600 900
Current account – Natasha C — 15,000 2,400
NOTES
a. On 1 January 20X3 Natasha plc acquired 75% of Joshua Ltd for K300,000 when Joshua’s
share capital and reserves were K252,000. At the date of acquisition, the net book value of
Joshua’s non-current assets were K90,000. Joshua immediately included the revaluation in its
statement of financial position.
b. On 1 January 20X5 Natasha acquired 20% of Chilufya Ltd for K72,000 when the fair value of
Chilufya’s net assets were K42,000.
c. Goodwill has been impaired in Joshua by K77,700 and in Chilufya by K31,800.
d. At the year end, Natasha plc has inventory acquired from Joshua and Chilufya. Joshua had
invoiced the inventory to Natasha C for K6,000 – the cost to Joshua had been K1,200 – and
Chilufya had invoiced Natasha C for K3,000 – the cost to Chilufya had been K1,800.
Required: Prepare Natasha C plc’s consolidated statement of financial position as at

31.12.20X9.

…………………………………………………………………………………………………………….
QUESTION TEN
The following are the financial statements of the parent company Njivwa plc, a subsidiary
company Wendy and an associate company Natasha.
Njivwa Wendy Natasha
ASSETS £ £ £
Non-current assets
Property, plant and equipment at cost 320,000 180,000 100,000
Depreciation 200,000 70,000 21,000
120,000 110,000 79,000
Investment in Wendy 140,000
Investment in Natasha 40,000
Current assets
Inventories 120,000 60,000 36,000
Current account – Wendy 15,000
Current account – Natasha 3,000
Bank 24,000 7,000 6,000
Total assets 592,000 247,000 157,000
£1 shares 250,000 60,000 50,000
General reserve 30,000 20,000 12,000
430,000 200,000 112,000
Current liabilities
Trade payables 132,000 25,000 34,000
Taxation payable 30,000 7,000 8,000
Current account – Njivwa 15,000 3,000

Statement of comprehensive income for the year ended 31 December 20X3
£ £ £
Sales 300,000 160,000 100,000
Cost of sales 90,000 80,000 40,000
Gross profit 210,000 80,000 60,000
Expenses 95,000 50,000 40,000
Dividends paid (shown in equity) 40,000 10,000 8,000
Dividends received from Wendy and Natasha 11,000 NIL 10,000
Income tax expense 30,000 7,000 8,000
Profit for the period 96,000 23,000 22,000
Dividend paid (shown in equity) 40,000 10,000 8,000
Notes
(a) Njivwa acquired 90% of the shares in Wendy on 1 January 20X1 when the balance on the
retained earnings of Wendy was £60,000 and the balance on the general reserve of Wendy
was £16,000. Njivwa also acquired 25% of the shares in Natasha on 1 January 20X2 when
the balance on Natasha’s accumulated retained profits was £30,000 and the general reserve
£8,000
(b) During the year Njivwa sold Wendy goods for £16,000, which included a mark-up of one-third.
80% of these goods were still in inventory at the end of the year.
Required:
(a) Prepare a consolidated statement of comprehensive income, including the associated
company Natasha’s results, for the year ended 31 December 20X3.
(b) Prepare a consolidated statement of financial position as at 31 December 20X3. The group
policy is to measure non-controlling interests using the proportionate method.
…………………………………………………………………………………………………………….
But they that wait upon the Lord shall renew their strength; they shall mount up with
wings as eagles; they shall run, and not be weary; and they shall walk, and not faint. Isaiah
40;31

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BS TEST ONE 420 – TUTORAIL

PRINCE DANIELS, TUTOR

PRINCE DANIELS – 2024

PRINCE DANIELS – 2024

PRINCE DANIELS – 2024

PRINCE DANIELS – 2024

Capital and liabilities

Non-current liabilities 200 300

Current Liabilities 400 800

PRINCE DANIELS – 2024

Profit before tax 575 1,990

Exchange Rates were as follows:

PRINCE DANIELS – 2024

Sulu Peter Chilu Jemilo

PRINCE DANIELS – 2024

Chilu plc Mapalo Ltd Tasha Ltd

Revenue 825,000 220,000 82,500

Cost of sales (616,000) (55,000) (8,250)

Gross profit 209,000 165,000 74,250

Administration costs (33,495) (18,700) (3,850)

Distribution costs (11,000) (14,300) (2,750)

Dividends receivable from

Mapalo and Tasha 4,620 ………………………….

PRINCE DANIELS – 2024

Income tax (55,000) (33,000) (11,000)

Profit after tax 114,125 99,000 56,650

PRINCE DANIELS – 2024

Garden Rose Petal

Land at cost 240,000 84,000

Land at valuation 180,000

Investment in Rose 300,000

Investment in Petal 72,000

Inventories 15,000 99,000 5,400

Trade receivables 33,000 98,400 1,200

Current account – Rose 18,000

Current account – Petal 2,400

Cash 6,600 67,200 300

Total current assets 75,000 264,600 6,900

Total assets 705,000 444,600 90,900

EQUITY AND LIABILITIES

K1 shares 300,000 120,000 30,000

PRINCE DANIELS – 2024

Retained earnings 270,000 216,000 57,600

570,000 426,000 87,600

Trade payables 135,000 3,600 900

Current account – Garden — 15,000 2,400

Total equity and liabilities 705,000 444,600 90,900

Prepare Garden plc’s consolidated statement of financial position as at

PRINCE DANIELS – 2024

PRINCE DANIELS – 2024

PRINCE DANIELS – 2024

Statements of financial position as at 31 December 20X9

Natasha Joshua Chilufya

Land at cost 240,000 84,000

Land at valuation 180,000

Investment in Joshua 300,000

Investment in Chilufya 72,000

Inventories 15,000 99,000 5,400

PRINCE DANIELS – 2024

Current account – Joshua 18,000

Current account – Chilufya 2,400

Cash 6,600 67,200 300

Total current assets 75,000 264,600 6,900