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Question 2: Anna Ltd has one subsidiary undertaking, Wes Ltd, which was acquired on 1 October 2015. The Statement of Financial Positions of Anna Ltd and Wes Ltd as at 30 September 2016 are as follows: Anna Ltd Wes Ltd Fixed Assets (000) (000) Tangible fixed assets Investment in Wes Ltd 88,301 45,523 39,500 0 127 801 45,523 Current assets Inventory 25,205 6,861 Debtors 9,147 4,725 Cash at bank 401 1,028 34,753 12,614 Total Assets 162,554 58,137 liabilities & equity Current liabilities Trade creditors 11,669 5,002 Accruals 2,984 991 Taxation 1,832 714 16,485 6,707 long Term liabilities Bank Loan 50,000 7,000 Total Liabilities 66,485 13,707 Equity Share Capital 30,000 5,000 Share premium 20,000 2,000 Retained Earnings 46,069 37,430 96,069 44,430 Total Liabilities & Equity 162.554 58,137 You have been given the following further information: i. The share capital of Wes Ltd consists of ordinary shares of l each. ii. Anna Ltd acquired 3,000,000 shares in Wes Ltd on 1 October 2015. iii. At 1 October 2015 the balance on the profit and loss account of Wes Ltd was 32,550,000. iv. The fair value of the fixed assets of Wes Ltd at 1 October 2015 was 42,500,000. The book value of the fixed assets at 1 October 2015 was 38,500,000. The revaluation has not been recorded in the books of Wes Ltd. Required: Prepare the consolidated Statement of Financial Position of Anna Lid and its subsidiary undertaking as at 30 September 2016. You are required to show all your workings clearly, (25 marks)

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