Tutorial 1 - Additional Questions-, Quizzes of Financial Accounting

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3/6/25, 6:13 PM about:blank Tutorial 1 - Additional Questions Additional question 1 King ple and Queen ple On 1 January 2015, King ple purchased 100% of the share capital of Queen ple for £40,000k ‘The equity of Queen ple at this date were as follows: £000 Share capital 10,000 Share premium 2,000 Retained earnings 18,000 30,000 ‘The financial statements of both companies as at 31st December 2021 were as follows: King ple Queen ple £2000 £000 Income Statement forthe year ended 31 December 2021 Revenue 28,000 7,400 Cost of sales 4,200) 1850) Gross profit 23,800 5,550 ‘Administration & distribution 7400 (1250 Profit before tax 16,400 4,300 ‘Taxation 4,900) 4.300) Profit forthe year 11,500 3,000 Retained earnings bit 46,500 29,000. Retained earnings of 58,000 32,000 Statement of Financial Position at 31 December 2021 ‘Non-currentassels Property,plant & equipment 50,000 31,000 Investment in Queen ple 40,000 90,000 31,000 Current assets Inventories 14,000 6,000 ‘Trade receivables 5,000 12,000 Cash 21,000 7,000 40,000 25,000 730,000 36,000 Equity Share capital 25,000 10,000 Share premium 14,000 2,000 Retained earnings 8,000 32,000 97,000 44,000 Current liabilities 31,000 7,000 Trade payables 2,000 $,000 Other payables 33,000 12,000 130,000. 36,000 During 2017, Goodwill was found to have been impaired by 20% of its original value, Required Prepare the Consolidated Financial Statements for the King ple group as at 31 December 2021 116