QUESTION 2 - SIMILAR

SOLUTION
Expense amount Income amount
Investment fair value
2,300 Revenue 182,500
Decrease
Investment
Cost of sales 128,500 800
income
Admin expense(25000-1850 dividend) 23,150
Distribution cost 8,500
Loan note interest 2,400
Bank interest 300
Provision for tax 5,600
Defered tax liability 3,750
Net profit after tax 8,800
183,300 183,300
Dividend 1,850 8,800
Net profit for appropriation 6,950
8,800 8,800

Statement of financial position

Liabilities AmountAssets Amount

Land & building
Equity (43+1.2+67.4- 98,200
13.4)
Stated capital 61,000
Profit and loss 6,950 investments 13,500
Capital surplus(7000+1200)
8,200 inventory 19,800
Increase in land value
Income surplus(12100-900
11,200 receivables 29,000
previous year tax)
Other surplus 3,000
Liabilities
Loan note 30,600
bank 4,600
Trade payables 21,700 receivables 000
Deferred tax(4000+3750) 7,750
Income tax livability 5,600

Total 160,600 160,600

statement of changes in equity

Equityretained earnings other reservestotal

Opening balance 58,90012,100 10,000 81,000
Issues of right shares2,100
Net profit for year 6,950
Dividend paid (1,850)
Previous year tax (900)
Land and building
1,200
Revaluation
Closing balance 61,00016,300 11,200 88,500

statement of other comprehensive income

Expense Amt income amount

Net profit before other
Net profit 6,950 8,050
comprehensive income
Decrease in
2,300revaluation of land 1,200
investment value
9,250 9,250