Question

Given below are the statements of profit and loss for Parker Chemicals Ltd., Sanoofi Ltd. and A-Trade Ltd. for the year ended 31st December 20X1
Statements of profit or loss for the year ended December 31st 20X1
   Parker   Sanoofi   A-Trade
   Rs. 000   Rs. 000   Rs. 000
Revenues   98,020   39,870   12,050
Operating expenses   (77,900)   (29,570)   (11,030)
Profit from operations   20,120   10,300   1,020
Finance costs   (1,600)   (800)   (1,000)
Profit before tax   18,520   9,500   20
Tax   (5,926)   (3,040)   (6.5)
Profit for the year   12,594   6,460   13.5

Other information:
•   Parker acquired 75% of Sanoofi 2 years ago
•   Parker acquired 20% of equity shares of A-Trade on 1st August 20X1 for Rs. 2.59m for long-term investment purposes.
•   During the year A-Trade sold goods worth Rs. 1.25m at a margin 20% to Parker, at the year-end Parker still had 50% of these goods as unsold stock.
•   Fair value of investment in A-Trade stood at Rs. 2.79m as on December 31st 20X1.

Required:
Prepare the consolidated statement of profit and loss and other comprehensive income for the Parker group for the year ended 31st December 20X1. Show all the necessary workings.

Answer 1

PART II -STATEMENT OF PROFIT AND LOSS

NAME OF COMAPNY-PARKER

STATEMENT OF PROFIT AND LOSS FOR THE PERIOD 31ST DECEMBER 20*1

serial no	Particulars	Note no	Figures at current reporting period
I	Revenue From operations	1	31440
II	other income
III	Total income		31440
IV	EXPENSES
	Finance cost		3400
	Other expense
	Total Expenses		28040

V	Profit Before Exceptional Items(I-IV)
VI	Exceptional Items
VII	Profit Before Exceptional Items(V-VI)		28040
VIII	Tax Expenses 1.current Tax-8972.50 2.Deffered Tax		8972.50
IX	PROFIT		19067.50
XII	Other Comprehensive income
	A.Items that is wiil not be reclassified to profit or loss(2.79-2.59)		0.20
XIII	TOTAL COMPRENSIVE INCOME		0.20

NOTE NO 1

REVENUE FROM OPERATIONS AFTER ADJUSTMENTS

=31440-(1.25*50%*1/3)=31440

Assuming Revenues showing holding percentage