Prepare the statements of financial position of parent ltd

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Prepare the statements of financial position of Parent Ltd and the consolidated statement of financial position as at 1 January 20X7 after each transaction, using for each question the statements of financial position of Parent Ltd and Daughter Ltd as at 1 January 20X7 which were as follows:

                                                    Parent Ltd                          Daughter Ltd

                                                    £                             £

Ordinary shares of £1 each          40,500                         9,000

Retained earnings                        4,500                        1,800

                                                  45,000                 10,800

Cash                                           20,000                   2,000

Other net assets                          25,000                  8,800

                                                    45,000                   10,800

Problem 1: On 1 January 20X7 Parent Ltd acquired all the ordinary shares in Daughter Ltd for £6,000 cash. The fair value of the net assets in Daughter Ltd was their book value.

Reference no: EM132538204

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