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FA – L1 – Q75 – Preparation of limited liability company financial statements
Prepare Amswaim Beauty Products Limited's statement of profit or loss for the year ended 30 June 20X9 per IAS 1, with expense allocation by function.
Question
The following draft statement of profit or loss has been prepared for Amswaim Beauty Products Limited for the year ended 30 June 20X9.
| GH¢000 | GH¢000 | ||
|---|---|---|---|
| Opening inventory | 78 | Sales | 2,282 |
| Purchases | 1,055 | Sales returns | (66) |
| Purchase returns | (25) | ||
| Gross profit c/d | 1,170 | Closing inventory | 62 |
| 2,278 | 2,278 | ||
| Wages and salaries | 160 | Gross profit b/d | 1,170 |
| Office expenses | 236 | Dividends received | 20 |
| Depreciation: | |||
| Plant and machinery | 84 | ||
| Delivery vans | 48 | ||
| Office furniture | 17 | ||
| Directors’ salaries | 163 | ||
| Selling expenses | 95 | ||
| Rent of plant and machinery | 21 | ||
| Factory expenses | 109 | ||
| Legal expenses | 25 | ||
| Interest charges | 70 | ||
| Net profit c/d | 162 | ||
| 1,190 | 1,190 | ||
| Taxation on profits | |||
| Net profit after tax | 116 | Net profit b/d | 162 |
| Tax over-provided in the previous year | 8 | ||
| 170 | 170 |
Additional Information:
(1) Directors’ salaries are classified as administrative expenses.
(2) Other wages and salaries are apportioned 70% to distribution costs and 30% to administrative expenses.
(3) Amswaim Beauty Products Limited analyses expenses by function.
Required:
Prepare the company’s statement of profit or loss for the year to 30 June 20X9 in accordance with IAS 1 Presentation of Financial Statements.
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