Part (a)
| Consolidated statement of Financial Position of Erik ltd on 1st July, 2017 | |||||
| Combine | eliminate | Consolidated | |||
| Erik ltd | Finn ltd | ||||
| Equity | |||||
| Share capital Erik ltd | 130000 | 130000 | 130000 | ||
| Share capital Finn ltd | 90000 | 90000 | 90000 | 0 | |
| general reserve | 56500 | 12000 | 68500 | 68500 | |
| Retained earnings | 93500 | 36000 | 129500 | 129500 | |
| 0 | 0 | ||||
| total equity | 280000 | 138000 | 418000 | 328000 | |
| Liabilities | |||||
| dividend payable | 25000 | 12600 | 37600 | 37600 | |
| other liabilities | 75000 | 25000 | 100000 | 100000 | |
| Contingent liability | 0 | 3000 | 3000 | 3000 | |
| Total liabilities | 100000 | 40600 | 140600 | 140600 | |
| Total Equity and liabilities | 380000 | 178600 | 558600 | 468600 | |
| current assets | |||||
| cash | 11000 | 20600 | 31600 | 31600 | |
| Receivables | 25200 | 20000 | 45200 | 45200 | |
| other assets | 10000 | 8000 | 18000 | 18000 | |
| Shares in Finn ltd | 153800 | 0 | 153800 | 153800 | 0 |
| Inventories | 55000 | 45000 | 100000 | 100000 | |
| plant and equipment | 210000 | 107000 | 317000 | 317000 | |
| Accumulated depreciation | -85000 | -22000 | -107000 | -107000 | |
| Goodwill | -63800 | 63800 | |||
| Total Assets | 380000 | 178600 | 558600 | 468600 | |
| Goodwill calculation | |||||
| Consideration transferred | 153800 | ||||
| Share capital of Finn Ltd at acquisition | 90000 | ||||
| Goodwill calculation | 63800 | ||||
| contingent liability | 3000 | ||||
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