- 20 Marks
Prepare Pakasa Bepo Industries Ltd's statement of profit or loss and financial position for 20X9 per IAS 1, using trial balance and additional info.
Question
The list of balances of Pakasa Bepo Industries Limited shows the following balances at 31 December 20X9.
| Dr | GH¢000 | Cr | GH¢000 |
|---|---|---|---|
| Inventory (goods for resale) at 1 January 20X9 | 330 | Share capital (600,000 shares) | 300 |
| Revenue | 1,000 | ||
| Purchases | 484 | ||
| Purchases returns | 60 | ||
| Sales returns | 28 | ||
| Carriage outwards | 28 | ||
| Warehouse wages | 80 | ||
| Sales representatives salaries | 60 | ||
| Administrative wages | 40 | ||
| Warehouse plant and equipment – cost | 126 | ||
| Accumulated depreciation – 1 January 20X9 | 50 | ||
| Delivery vehicle hire | 20 | ||
| Goodwill | 100 | ||
| Distribution expenses | 10 | ||
| Administrative expenses | 30 | ||
| Directors’ salaries (charge to administrative expenses) | 30 | ||
| Rental income | 16 | ||
| Trade receivables | 60 | ||
| Cash at bank | 60 | ||
| Trade payables | 60 | ||
| Total | 1,542 | Total | 1,542 |
Additional Information
(1) Inventory (goods for resale) at 31 December 20X9 amounted to GH¢100,000.
(2) Annual depreciation on warehouse plant and equipment of GH¢32,000 should be provided.
(3) Income tax for 20X9 should be taken as GH¢50,000.
(4) Goodwill is to be written down to GH¢90,000.
Required:
Prepare the company’s statement of profit or loss for the year to 31 December 20X9 and a statement of financial position at that date in accordance with IAS 1 Presentation of Financial Statements.
Find Related Questions by Tags, levels, etc.
Report an error