10Bath

System

Hi every body, <BR><BR>I am really stuck and I need help to understand and solve this problem (consolidated accounts). <BR><BR>" Bath Ltd acquired 80% of the ordinary share capital of Jankin Ltd on 1 January 20X1 for the sum of 153,000 and 60% of the ordinary share capital of Arthur Ltd on 1 July 20X1 for the sum of 504,000. <BR><BR>From the information given below you are required to prepare the consolidated balance sheet of Bath Ltd at 31 December 20x1. <BR><BR>Comparative figures, notes to the accounts and an auditor's are not required. <BR><BR>a) The balance sheets of the three companies at 31 December 20X1 are as following.<BR><BR> Bath Limited Jankin Limited Arthur Limited<BR>Share copital £- £- £- <BR>Ordinary Shares of 0.25 each 750,000 100,000 400,000 <BR>Share premium 15,000 - - <BR>Profit & Loss account <BR> 1 January 20X1 191,000 19,400 132,000 <BR>Retained profit for 20X1 37,000 3,000 54,000 <BR>Taxation 78,000 24,000 56,000 <BR>Creditors 162,000 74,400 149,000 <BR>Bank overdraft: Bank A 74,000 - - <BR>Depreciation <BR>Free Hold Property 9,000 - 40,000 <BR>Plant and machinery 87,000 39,000 124,600 <BR>Dividends proposed 30,000 15,000 24,000 <BR>Current Account - 9,800 - <BR> <BR> 1,433,000 284,600 979,600 <BR> <BR>Free Hold Property, at cost 116,000 - 200,000 <BR>Plant and machinery, at cost 216,000 104,000 326,400 <BR>Investments in subsidiaries <BR>Jankin Limited 153,000 - - <BR>Arthur Limited 504,000 - - <BR>Trade investment 52,000 - - <BR>Stock and work in progress 206,000 99,000 294,200 <BR>Debtors 172,200 73,000 95,000 <BR>Bank balance: Bank B - 7,900 62,800 <BR>Cash 1,100 700 1,200 <BR>Current Account 12,700 - - <BR> <BR> 1,433,000 284,600 979,600 <BR> <BR>b) No interim dividends were declared or paid in 20X1 out of 20X1 profits. Bath Ltd has not yet accounted for dividends receivable from its subsidiary companies. <BR><BR>c) A remittance of 1,700 from Jankin Ltd in December 20X1 was not received by Bath Ltd until January 20X2. <BR><BR>d) An invoice for 1,200 for stock material (including 240 profit) had been included in sales in 20X1 by Bath Ltd but it was not received by Jankin Ltd until 20X2 <BR><BR>e) In Jankin Ltd's stock at 31 December 20X1, were goods to the value of 8,000 ex Bath Ltd on which the latter had taken profit of 1,600. <BR><BR>f) Profits of Arthur Ltd are deemed to have accrued equally throughout the year. <BR><BR>g) Any goodwill arising on consolidation is to be amortised over four years. <BR><BR>I will appreciate any help <BR><BR>my email is <BR><BR>hussainalasfoor77@yahoo.com