Redcliff Ltd acquired the entire share capital of ABC Ltd for $18,000 cash on 31 December 20X4. The balance sheets of the two companies as at that date were as follows:           Redcliff Ltd                                                                             ABC Ltd $ $ $ Current assets 240,000                                                        28,800 Non-current assets: Investment in ABC at cost 18,000 Other asset 96,000 114,000 9,600 Total assets 354,000 38,400 Current liabilities 198,000 20,400 Net assets 156,000 18,000 Paid-up capital 120,000 12,000 Retained profits 36,000 6,000 Owners’ equity 156,000 18,000 Required: Prepare the consolidated balance sheet of Redcliff Ltd and its subsidiary as it 31 december 20X4.

Question

Redcliff Ltd acquired the entire share capital of ABC Ltd for $18,000 cash on 31 December 20X4.
The balance sheets of the two companies as at that date were as follows:
          Redcliff Ltd                                                                             ABC Ltd
$ $ $
Current assets 240,000                                                        28,800
Non-current assets:
Investment in ABC at cost 18,000
Other asset 96,000 114,000 9,600
Total assets 354,000 38,400
Current liabilities 198,000 20,400
Net assets 156,000 18,000
Paid-up capital 120,000 12,000
Retained profits 36,000 6,000
Owners’ equity 156,000 18,000
Required:
Prepare the consolidated balance sheet of Redcliff Ltd and its subsidiary as it 31 december 20X4.

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Consolidated Financial Statement

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