Question

And calculate the Total Equity.

10 The summarised information of Albion Ltd includes the following o includes the following accounts at 30 June 2019 Amortisation of patents 20 Interest income ost of sales 130 8200 Legal fees incurred Development expense 1860 300 Miscellaneous expense vidend declared and paid 510 300 Research expense Dividend revenue 8000 40 Retained profit as at 30 June 2018 Gain on sale of plant 260 1000 Revaluation gain Income tax expense 720 Sales revenue 13000 Interest expense 50 Share capital 10000 a) Calculate the gross profit, EBIT net profit, for Aidion Liu for the period ended Ton Liu for the period endeu 30 June 2019 Gross profit Earnings before interest and tax Net profit Workings:

Answer 1

a)
Sales Revenue	$ 13,000.00
Less: Cost of Sales	$   8,200.00
Gross Profit	$   4,800.00
b)
Sales Revenue		$     13,000.00
Less: Cost of Sales		$       8,200.00
Gross Profit		$       4,800.00
Less: Operating expenses:
Amortisation of Patents	$        70.00
Development Expense	$      300.00
Research Expense	$      510.00
Legal fees Incurred	$      130.00
Miscellaneous Expenses	$   1,860.00
Total Expenses		$       2,870.00
Operating Income		$       1,930.00
Add: Other revenues/gains
Dividend Revenue	40
Gain on sale of plant	260
Total Other revenues/gains		300
Profit before interest and Tax		$       2,230.00
c)
Profit before interest and Tax		$       2,230.00
Less : Other expenses/losses
Interest Income	20
Interest Expenses	-50	-30
Earning befor tax		$       2,200.00
Less: Income tax Expenses		720
Net Profit		$       1,480.00
d) Equity
Share capital	$ 10,000.00
Retained earnings = 8000+1480-300	$   9,180.00
Revaluation Reserve	$   1,000.00
Total Equity	$ 20,180.00