Aberdeen plc acquired shares in two other companies as follows:

The summarised draft profit and loss accounts of the companies for the year ended 31 October 2002 were:

Additional information

(1) It is group policy to amortise purchased goodwill over five years with a full year’s charge in the year of acquisition.

(2) On 1 October 2002, Berwick Ltd sold goods to Aberdeen plc. These goods had a sales value of £200 000, Berwick Ltd having applied a mark up of 25%. As at 31 October 2002, Aberdeen plc still held £140000 of these goods in stock.

(3) Aberdeen plc has not yet accounted for any dividends receivable from Berwick Ltd or Coupar Ltd. The dividends from Coupar Ltd all relate to the post-acquisition period.

(4) Aberdeen plc requires Coupar Ltd to bring its depreciation methods in line with group accounting policies. The directors have estimated that this would reduce the profit of Coupar Ltd for the year ended 31 October 2002 by £200 000. Ignore any effect on the taxation charge.

(5) The directors of Aberdeen plc propose a transfer of £100 000 to a general reserve and this should be accounted for.

(6) The retained profit brought forward at 1 November 2001 for the three companies was:

Requirement

Prepare the consolidated profit and loss account, statement of reserves and disclosure note for Profit attributable to the members of Aberdeen plc, for the year ended 31 October 2002.