Question

100 ML ULUL PIELIQUIe plant is determined as being 6 years, (b) Company A recognises income arising from service contracts on the basis of the stage of completion (C) Company A determines that it will calculate its warranty provision using past experience of defective products. (d) The current year's warranty provision is calculated by providing for 1% of current year sales, based on last year's warranty claims amounting to 1% of sales. Pate ercise 16.6 PREPARATION OF A STATEMENT OF FINANCIAL POSLTION * The summarised general ledger trial balance of Noah Ldncludes the following accounts at 31 December ossian.2016Not consolidated 10. Currency Dr Cash deposits Cash of Cash equivalent 3117000 Trade debtors Trade Rec. 0 - 9+ 1163000 © Allowance for doubtful debts $ 50000 in 1000 CHAPTER 16 Financial statement presentation 477

Answer 1

Noah Limited
Statement of Financial Position
EQUITY AND LIABILITIES		Amount in $
Equity attributable to owener
Share Capital		3459000
Retained Earnings		1515000
Non Controlling Interest		0
Total Equity		4974000
Non Current Liabilites
Bank Loans		1228000
Provision for Employee Benefits		79000
Total Non Current Liabilites		1307000
Current Liabilites
Allowance for Doubtful Debts		50000
Trade Payables		1078000
Sundry Payables		568000
Bank OverDraft		115000
Bank Loan repayable within a year		620000
Other Loans repayable within a year		646000
Current Tax Payable		74000
Provision for Employee Benefits payable within 1 year		143000
Dividends Payable		100000
Provision for Warranty is for 6-months		20000
Total Current Liabilites		3414000
Total Liabilites		4721000
Total Equity and Liabilites		9695000
ASSETS
Non Current Assets
Tangible Assets
Land ( At Cost)		234000
Buildings (At Cost)		687000
Accumulated Depreciation - buildings		-80000
Plant and Equipment (at Cost)		6329000
Accumulated Depreciation - Plant and Equipment		-3036000
Total Tangible Assets		4134000
Intangible Assets
Investments in Corporate Bonds		30000
Goodwill		2425000
Brand Names		40000
Patents		25000
Deferred Tax Asset		189000
Total Intangible Assets		2709000
Current Assets
Cash Deposits		117000
Trade Debtors		1163000
Sundry Receivables		270000
Prepayments		94000
Sundry loans (Current)		20000
Raw Materials on Hand		493000
Finished Goods		695000
Total Current Assets		2852000
Total Assets		9695000