Question

Question 1 Consider the following data being taken out of the Trial Balance of FW Ltd, as at 31 March 2019: Cr Ordinary shares of $5 each 530,000 8% debentures 90,000 General reserve 100,000 Retained profits 135,323 Equipment at cost 175,000 Furniture at cost 196,000 Accumulated depreciation - Equipment 89,500 Accumulated depreciation - Furniture 147,800 Stock at 31 March 2018 93,683 Accounts Receivable SER 220,640 Accounts Payable 91,661 Cash at bank 566,6621 Purchases 128,820 Sales SE 530,260 Administrative expenses 73,740 General expenses 85,608 Directors' remuneration 30,364 Distribution costs 100,8071 Debenture interest 13,600 Interim dividend paid - Ordinary shares 13,9001 Other expenses 25,720 Total 1.214.544 1714,544 The following additional information relating to FW Ltd. is also available:

Answer 1

Compute statement of profit or loss and other comprehensive income as follows: F. LTD. Statement of Profit and Loss and Other Comprehensive Income For the Year Ended March 31,2019 Particulars Amount Amount Revenues Cost of Goods Sold (93683+128820-60200)| Gross Profit Expenses: Administrative Expenses General Expenses Distribution Costs (100807 + 5680) Directors' Remunerartion Other Expenses (25720 - 9800) Debenture Interest Depreciation (175000*0.1 + 196000*0.05) Profit before extra ordinary items and income $530,260 |-$162,303 $367,957 -S73,740 -$85,608 -$106,487 -$30,364 -$15,920 -$3,600 -$27,300 -S343,019| $24,938 tax Extraordinary items: Loss on Sale of Furniture (11560 - (43600 - |28280) Profit Before Tax Income Tax expense Net income -$3,760 $21,178 -S13,460 $7,718 Compute statement of changes in equity as follows:

Statement of changes in Equity For the year ended Mar 31,2019 Ordinary General Retained Description Beginning Balance Restatements during the year Adjustments during the year Balance after restatements & adjustments S530,000 Interim Dividend Net Income Transfer to General Reserve Transfer from Retained Earnings Ending Balance as on Mar 31,2019 Earnings $530,000 s100,000 | $135,323 Shares reserve $100,000 || $135,323 -$13,900 $7,718 -$20,000 $20,000 $530,000 S120,000 S109,141 Compute statement of financial position as follows:

F. LTD. Statement of Financial Position For the Year Ended March 31,2019 Particulars |Current Assets: Cash Accounts Receivable (220640 + 11560) Prepaid Expenses Inventory Total Current Assets (a) Non-Current Assets: Equipment at cost Less:Accumulated Depreciation (89500+17500) |-$107,000| S68,000 Furniture Less:Accumulated Depreciation (147800+9800- |28280) Total Noncurrent Assets (b) Total Assets (a+b) Amount Amount $566,662 $232,200 $9,800 S60,200 S868,862 $175,000 S152,400 |-S129,320 $23,080 $91,080 $959,942 Current Liabilities: Accounts Payable Accrued Expenses (5680 + 13460) Total Current Liabilities Noncurrent Liabilities: 8% Debentures Total Liabilities (c) $91,661 $19,140 $110,801 $90,000 $200,801 Owners' Equity: Ordinary Shares of 5 each General Reserve Retained Earnings Total owner's equity (d) Total Liabilities & Owners' Equity (c + d) S530,000 $120,000 S109,141 $759,141 $959,942