Question 1 Additional informations

Working 1 Depriciation

plant depn 20% reducing balance

cost 8750
Ad 4120

depn charge 926 (8750-4120)*20%

0
Building depn 5% st line
cost 15200
Ad 6080

depn charge 760 15200*5%

Working 2 Closing Inventory

220000

Working 3 Tax

Tax estimate for the year 3,120,000

over provision 500,000

Working 4 Receivable
ID 350,000
Receivable 6,450,000
Closing Allowance 305000 6540-350*5%
opening alowance 420000
decrese in allowance -115000

working 5 intrest expense 270 2700*10%

Statement of Proft and Loss

REVENUE/SALES 21520-680 20840
LESS: COST OF GOOD SOLD 9110+4520-220(w2)-430 12980
GROSS PROFIT 7860
ADD: OTHER INCOME 0
LESS:DISTRIBUTION EXPENSES 3180
LESS:ADMINISTRATIVE EXPENSES 2440+926+760(w1)+235( 4361

OPERATING PROFIT/
PROFIT BEFORE INTREST AND TAX 319
LESS:FINANCE CHARGE W5 270
PROFIT BEFORE TAX 49
LESS: TAX EXPENSES W3 2620
LOSS FOR THE YEAR -2571
PNL Administrative expn 926
SOFP NCA- AD-depn expn 3704

PNL Administrative expn 760

SOFP NCA- AD-depn expn 8360

PNL COGS 220000

SOFP CA 220000

PNL 2,620,000
SOFP 3,120,000

PNL 235,000 350-115

SOFP 5,795,000 6450-350-305

PNL finance cost 270

SOFP accural/Current Liability 270

Statement of Financial Position

 ASSET
NON-CURRENT ASSET
LAND 12100
BUILDING W1 8360
Plant W1 3704

CURRENT ASSET

INVENTORIES W2 220
TRADE AND OTHER RECEIVABLES W4 5,795
6,015

0 TOTAL ASSET 30,179

EQUITY
ODINARY SHARE CAPITAL 10,000
SHARE PREMIUM 2500
RETAIN EARNING 8160-2571-500 5089

TOTAL EQUITY 17,589

LIABILITIES
NON CURRENT LIABILITIES
LOAN NOTES 2700

CURRENT LIABILITIES
TRADE AND OTHER PAYABLES 5100
ACCURALS W5 270
OVERDRAFT 1400
TAX PAYABLE W3 3120

TOTAL LIABILITY 9890

TOTAL LIABILITY AND EQUITY 30,179