I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

(2 marks) 

90 

Martin Co owns 100% of Kyle Co. The following information has been extracted from the 

individual company statements of financial position as at 31 December 20X8. 

 

Martin Co 

Kyle Co 

 $ $ 

Current assets 

250,000 

100,000 

Current liabilities 

110,000 

45,000 

Included in the receivables of Martin Co and the payables of Kyle Co is an amount of $6,000 

owed to Martin Co by Kyle Co. 

If there are no other intra-group balances, what amount would be shown for consolidated 

current assets? 

A $149,000 

B $350,000 

C $344,000 

D $356,000 

(2 marks) 

91 

Holder Inc acquired 150,000 $1 ordinary shares in Sub Inc on 1 July 20X6 at a cost of 

$300,000. Sub Inc's reserves at 1 July 20X6 were $36,000 and its issued ordinary share 

capital was $200,000. The fair value of the non-controlling interest at acquisition was 

$100,000. 

At 30 June 20X9 Sub Inc's reserves were $16,000.