The following are the summarised statements of financial position of WWW Ltd, Zonko's Ltdand MoM Ltd as at 31 July 2020:www LtdZonko's LtdМоM Ltd€000€000€000AssetsNon-current assetsProperty, Plant and Equipment12,8307,6905,130Investment in Zonko's5,0401,3904,490Investment in MoMCurrent assets2,6801,770Total assets23,75010,3706,900Equity and liabilitiesEquityOrdinary share capital (€1)Retained earnings10,0005,0004,0007,9303,2101,250Non-current liabilities1,2009002,0003,820Current liabilities960750Total equity and liabilities23,75010,3706,900The following additional notes are available:1. www Ltd acquired three million of the ordinary shares of Zonko's Ltd on 1 October2011 when the retained earnings of Zonko's Ltd were €1,800,000.2. www Ltd acquired 30% of the ordinary shares of MoM Ltd on 1 March 2012 whenthe retained earnings of MoM Ltd were €500,000.3. During July 2020 MoM Ltd sold goods to WWW Ltd at invoice value €60,000 onwhich MoM Ltd earned a mark-up of 20%. WWW Ltd had 60% of these goods ininventory at the reporting date and the invoice was not settled until 30 August 2020.4. The investment in MoM Ltd was impaired by €10,000 during the year ended 31 July2020.5. Non-controlling interests on 1 October 2011 was measured at their shares of the netassets of Zonko's Ltd.Requirement Prepare the consolidated statement of financial position of the WWW Ltdgroup as at 31 July 2020.

The question provides us with the financial statements of 3 companies, WWW Ltd., Zonko's Ltd. &…

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Accounting

Requirement Prepare the consolidated statement of financial position of the WWW Ltd group as at 31 July 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following are the summarised statements of financial position of WWW Ltd, Zonko's Ltd
and MoM Ltd as at 31 July 2020:
www Ltd
Zonko's Ltd
МоM Ltd
€000
€000
€000
Assets
Non-current assets
Property, Plant and Equipment
12,830
7,690
5,130
Investment in Zonko's
5,040
1,390
4,490
Investment in MoM
Current assets
2,680
1,770
Total assets
23,750
10,370
6,900
Equity and liabilities
Equity
Ordinary share capital (€1)
Retained earnings
10,000
5,000
4,000
7,930
3,210
1,250
Non-current liabilities
1,200
900
2,000
3,820
Current liabilities
960
750
Total equity and liabilities
23,750
10,370
6,900
The following additional notes are available:
1. www Ltd acquired three million of the ordinary shares of Zonko's Ltd on 1 October
2011 when the retained earnings of Zonko's Ltd were €1,800,000.
2. www Ltd acquired 30% of the ordinary shares of MoM Ltd on 1 March 2012 when
the retained earnings of MoM Ltd were €500,000.
3. During July 2020 MoM Ltd sold goods to WWW Ltd at invoice value €60,000 on
which MoM Ltd earned a mark-up of 20%. WWW Ltd had 60% of these goods in
inventory at the reporting date and the invoice was not settled until 30 August 2020.
4. The investment in MoM Ltd was impaired by €10,000 during the year ended 31 July
2020.
5. Non-controlling interests on 1 October 2011 was measured at their shares of the net
assets of Zonko's Ltd.
Requirement Prepare the consolidated statement of financial position of the WWW Ltd
group as at 31 July 2020.

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