WORKINGS

OTHER PPE
COST 36000 COST
ACC DEP 1APR X6 -11500 ACC DEP 1APR X6

dep exp for y/e 31mar x7 -900 DEP EXP FOR Y/E 31 MARX7
NBV AT YEAR END 23600 NBV

M.V AT YEAR END 32000 FV LESS CTS

REVALUED BY 8400
shifting entry
ppe 8400 NCAHFS
rev res 8400

p&l

NOTE 2
date rentals int exp dec in LO BAL LO
1 APR X6 6620
1 ARP X7 2000 -529.6 1470.4 5149.6
current non current

int exp 529.6

accr int 529.6
ROU 8620
LEASE OBL 8620

DEP ROU 1724

LEASE OBL 2000
CASH 2000

THE SECOND LEASE IS OPERATING LEASE… BECAUSE LOW VALUE ASSET EXEMPTION

PER MONTH RENT EXPENSE = TOTAL LEASE RENTALS /TOTAL LEASE TERM 9000

DOUBLE ENTRY
rent exp 108
cash 60
accrued liab 48
 rent exp 60
cash 60

rent exp 48
acc liab 48

p&l 800
tax payble 800

PROFIT RECONCILIATION FOR THE YEAR ENDED 31ST MAR X7

UNADJUSTED PBT 6250

DEP PROPERTY -900

DEP HFS -100
IMPAIRMENT HFS -900

REVERSAL INITIAL PAYMENT LEASE 2000

DEP ROU -1724
INT EXP FINANCE LEASE -529.6
TAX EXP -800
rent exp low value -48

ADJUSTED PROFIT 3248.4

RACKIT CO SOFP AS AT 31ST MAR X7

ASSETS
NCA
PROPERTY 32000
PLANT( ROU) 6896

CURRENT ASSET
INVENTORY 6200
RECIEVABLE 3450
NCA HFS 2500

51046

EQUITIES AND LIABILITIES

CAPITAL AND RESERVES
OSC 20000
REVALUATION RESERVE 8400
RETAINED EARNING 7058.4
NON CURRENT LIABILITIES
LOAN NOTES 5000
LEASE OBLIGATION 5149.6

CURRENT LIABILITES
PAYABLES 1940
ACCRUED INTEREST 529.6
LEASE OBLIGATION 1470.4
ACCRUED RENT 48
TAX 800
BANK O/D 650

51046
 HFS
4000
ACC DEP 1APR X6 -500

DEP EXP FOR Y/E 31 MARX7 -100

3400

FV LESS CTS 2500

shifting entry
3400
PPE 3400

900
ncahfs 900