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Unit 7 Financial Accounting and ReportingAssessment Assignment

Task 3

Qualification Unit number and title

Pearson BTEC Level 4 HNC Diploma inBusiness (FoC QualificationInternational Diploma in BusinessProgramme) 

IDP 7 (F/601/0864) Financial Accounting andreporting

Task 3 (LO2: 2.3; LO3: 3.2 and M1 M2 M3)

. You will be given a set of financial data from which you must prepare the following:

Prepare a consolidated Balance sheet and Profit and loss account for Subo UK Ltd for the year ending31 December 2012.

In your report explain what a consolidated profit and loss statement and balance sheet is and why it

is necessary to create such statements. Also, explain the benefits of preparing such statements.

The data for this task is:

Here is the summarised information of the Engineering firm, Syco UK plc and its subsidiary, Subo UK

Ltd.

Income statements for the year ending 31 December 2012

should be negative

because check Prf

before tax which is

100000 (187500 +

(87500) )

(Taxation and profit for the year to be calculated)

Syco UK plc Subo UK Ltd

Sales 850,000 225,000

Cost of sales (460,000) (37,500)

Gross profit 390,000 187,500

Sundry expenses (150,000) 87,500

Income from shares in group

company

60,000 0

Profit before taxation 300,000 100,000

Taxation at 5% and

10%respectively

Profit for the year

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Balance sheet as at 31 December 2012

Further information:

1.  Syco UK plc acquired 80% of the shares in Subo UK ltd on 1 January 2009. Subo’s profit

balance as at that date was £5,000

2.  During the year, Syco UK plc paid dividends £180,000 and Subo UK Ltd paid dividends of

£75,000

End of data

Syco UK plc Subo UK Ltd

Non-currenttangible assets

640,000 220,000

Investments:

Shares in group

company

200,000 0

840,000 220,000

Current assets

Inventory 150,000 125,000

Accounts

receivable

140,000 75,000

Bank 15,000 3,000

Cash 5,000 2,000310,000 205,000

Total assets 1,150,000 425,000

Current liabilities

Trade accounts

payable

(40,000) (80,000)

Other payables,

taxation and social

security

(80,000) (70,000)

(120,000) (115,000)

Non-current

liabilities

Deferred taxation (230,000) (10,000)

Total liabilities (350,000) (125,000)

Net assets (800,000) 300,000

Equity

Share capital

(ordinary shares of

£1 each)

(450,000) 200,000

Reserves (350,000) 100,000

(800,000) 300,000

Net assets = 1150000 (which is total

assets) – 350000 (total liabilities)=

Gives 800,000 not minus 800000

115000 = trade acc payable + other

payables

So think this value should be 35000

Share capital and reserves are not

negative !!! also 800,000 is not

negative

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