Financial Accounting & Reporting-I

Syed Huzaifa Sami

ARTT Business School
Certificate in Accounting and Finance (CAF)
40 Minutes – 30 Marks
Faculty: ARM & AMK
Quiz: IAS 08 & IAS 33
CAF-1 – Financial Accounting and Reporting 1
Question 1 (20 Marks)
Following are the balances if Chakas Limited (CL) for the year ended December 31, 2018.
2018
Share Capital 225,000
Share Premium 128,000
General reserves 97,000
Translation Reserves 73,000
Retained Earnings 420,000
Additional Information
1. Following share issues were made:
a. 6,000 shares were issued at a premium of Rs.8 on 7 April 2019
b. 1,400 shares were issued in August 2020 at a premium of Rs.5
c. A right issue of 1 for every 5 shares held was also made at a premium of Rs.3 on October 1, 2019
2. Dividends declared are as follows:
For The Year Ended Final Dividend Interim Dividend
Cash Bonus Cash Bonus
December 31 ,2018 8% 12% 16% -
December 31, 2019 15% - 12^ 14%
December 31, 2020 6% - 9% 12%
*Final Dividends are announced on March 1 every year
* Interim Dividends are announced on June 30 every year

3. On December 31, 2020 it was found that following errors were made in the past
a. A plant purchased at a cost of 800,000 was installed at a cost of Rs.150,000. The asset was available for
use on June 30, 2016. The accountant however expensed out the installation cost in 2016
b. An income of Rs.30,000 and 20,000 recorded in year 2017 and 2019 were actually expenses.
4. Profit for the year 2019 and 2020 was Rs.630,000 and Rs.740,000 respectively
5. It is the policy of the company to transfer 5% of profit to general reserves
6. Translation income amounted to Rs.7,000 in 2019
Required
Prepare statement of changes in equity for the year ended December 31, 2020 along with relevant notes and extracts of
the financial statements.

Question 2 (10 Marks)

https://forms.gle/j2krcFMAFwGR8pBv8

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