Income Tax – Knowsia

FR – L2 – Q69 – Presentation of Financial Statements

Prepare Nova Bekasi Ltd's statement of profit or loss and financial position for 20X5 per IAS 1, considering inventory, depreciation, tax, and goodwill impairment.

Question

NOVA BEKASI LIMITED
The list of balances of Nova Bekasi Limited shows the following balances at 31 December 20X5.

	Dr GH₵’000	Cr GH₵’000
Share capital (600,000 shares)		320
General reserve		20
Accumulated profit 1 January 20X5		50
Inventory (goods for resale) at 1 January 20X5	60
Revenue		1,000
Purchases	540
Purchases returns		26
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 20X5		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	330
Cash at bank	60
Trade payables		60
	1,542	1,542

Additional information
(1) Inventory (goods for resale) at 31 December 20X5 amounted to GH₵100,000.
(2) Annual depreciation on warehouse plant and equipment of GH₵32,000 should be provided.
(3) Income tax for 20X5 should be taken as GH₵50,000.
(4) The recoverable amount of goodwill was only GH₵90,000.

Required
Prepare the company’s statement of profit or loss for the year to 31 December 20X5 and a statement of financial position at that date in accordance with IAS 1 Presentation of Financial Statements.

Answer

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Tags: Depreciation, Financial Reporting, Financial Statements, Goodwill Impairment, IAS 1, Income Tax, Inventory Valuation, Statement of Financial Position, Statement of profit or loss, Trial Balance
Level: Level 2

Topic: Presentation of Financial Statements, Presentation of Financial Statements (IAS 1)

FR – L2 – Q66 – Presentation of Financial Statements

Prepare profit or loss and financial position statements for Kumasi Healthcare Limited using trial balance and additional info.

Question

The following trial balance has been extracted from the books of Kumasi Healthcare Limited, at 31 March 20X5.

	GH₵ 000	GH₵ 000
Administrative expenses	210
Share capital (ordinary shares of GH₵ 1 fully paid)		600
Trade receivables	470
Bank overdraft		80
Income tax (overprovision in 20X4)		25
Retirement benefit liability		180
Distribution costs	420
Non-current asset investments	560
Investment income		75
Plant and equipment
At cost	750
Accumulated depreciation (at 31 March 20X5)		220
Accumulated profit (at 1 April 20X4)		240
Purchases	960
Inventories (at 1 April 20X4)	140
Trade payables		280
Revenue		1,950
Interim dividend paid	20
	3,630	3,630

Additional information
(1) Inventories at 31 March 20X5 were valued at GH₵ 150,000.
(2) The following items are already included in the balances listed in the above trial balance.

	Distribution costs GH₵ 000	Administrative costs GH₵ 000
Depreciation (for year to 31 March 20X5)	27	20

(3) A final dividend of GH₵ 120,000 was proposed but not yet paid.
(4) The retirement benefit liability increased by GH₵ 16,000 during the year which has not been included in the trial balance.
(5) Income tax for the year is estimated at GH₵ 29,000.

Required
Prepare a statement of profit or loss (analysing expenses by function) for the year ended 31 March 20X5 and a statement of financial position at 31 March 20X5.

Answer

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Tags: Financial Position, Financial Statements, Healthcare, Income Tax, Inventory, Profit or Loss, Trial Balance
Level: Level 2

Topic: Presentation of Financial Statements (IAS 1)

FR – L2 – Q65 – Presentation of Financial Statements

Prepare a statement of profit or loss and financial position for Lorry Limited using the trial balance and additional info for 20X4.

Question

LORRY LIMITED
The trial balance of Lorry Limited at 31 December 20X4 is as follows.

	GH₵ in million
Administration	86
	5
	918
	189
	175
	2,830
	20
	400
	18
	1,562
	3,304
	6,313

The following information is also relevant.
(1) Inventories on 31 December 20X4 amounted to GH₵127 million.
(2) Current tax of GH₵75 million is to be provided.
(3) The loan is repayable by equal annual instalments over three years.

Required
Prepare a statement of profit or loss (analysing expenses by function) for the year ended 31 December 20X4 and a statement of financial position as at that date.

Answer

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Tags: Financial Statements, Income Tax, Inventory, Loan repayment, Statement of Financial Position, Statement of profit or loss, Trial Balance
Level: Level 2

Topic: Accounting for Income Taxes (IAS 12)

FA – L1 – Q74 – Preparation of limited liability company financial statements

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.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Financial Statements, Goodwill, IAS 1, Income Tax, Inventory, Limited Liability Company, Profit or Loss, Statement of Financial Position
Level: Level 1

Topic: Preparation of limited liability company financial statements

Tag (SQ): Income Tax

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FR – L2 – Q69 – Presentation of Financial Statements

Prepare Nova Bekasi Ltd's statement of profit or loss and financial position for 20X5 per IAS 1, considering inventory, depreciation, tax, and goodwill impairment.

FR – L2 – Q66 – Presentation of Financial Statements

Prepare profit or loss and financial position statements for Kumasi Healthcare Limited using trial balance and additional info.

FR – L2 – Q65 – Presentation of Financial Statements

Prepare a statement of profit or loss and financial position for Lorry Limited using the trial balance and additional info for 20X4.

FA – L1 – Q74 – Preparation of limited liability company financial statements

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.

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FR – L2 – Q69 – Presentation of Financial Statements

Prepare Nova Bekasi Ltd's statement of profit or loss and financial position for 20X5 per IAS 1, considering inventory, depreciation, tax, and goodwill impairment.

You're reporting an error for "FR – L2 – Q69 – Presentation of Financial Statements"

FR – L2 – Q66 – Presentation of Financial Statements

Prepare profit or loss and financial position statements for Kumasi Healthcare Limited using trial balance and additional info.

You're reporting an error for "FR – L2 – Q66 – Presentation of Financial Statements"

FR – L2 – Q65 – Presentation of Financial Statements

Prepare a statement of profit or loss and financial position for Lorry Limited using the trial balance and additional info for 20X4.

You're reporting an error for "FR – L2 – Q65 – Presentation of Financial Statements"

FA – L1 – Q74 – Preparation of limited liability company financial statements

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.

You're reporting an error for "FA – L1 – Q74 – Preparation of limited liability company financial statements"

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