Question

Dr. s 1,476,948 4.349,474 66,554 18,600 --- - Purchases . Sales ... Returns inwards Returns outwards Insurance Wages and salaries --- Electricity Telephone charges Rent and rates Carriage Debenture interest paid Advertising expenses Trade receivables Trade pavables Discount received Cash at bank Allowance for doubtful debts, at 1 November 2018 Machinery, at cost Motor vehicles, at cost Accumulated depreciation. at 1 November 2018 Machinery Motor vehicles Inventory at 1 November 2018 5º. Debentures, repayable on 1 July 2030 General resere Ordinary share capital Retained profits. at 1 November 2018 25,000 884,500 -22000 53.000 13,000 636,000 18.000 -2280 30.000 332.400 +17600 553.800 628.000 20.000 2.364.300 25.400 336,000 605,000 8500 73.840 271.688 255.000 1.200.000 16.000 600.000 446.500

a, a statement of profit or loss and other comprehensive income for the year ended 31 October 2019.

b.statement of financial position

Answer 1

Answer-a:

Mac Limited. Statement of Profit or Loss and Other Comprehensive Income For the Year Ended October 31, 2019 4,282,920 Sales revenue less return and allowance Less: cost of goods sold: Beginning inventory Add: purchase less return (1,476,948 + 2,280 - 18,600-20,000) 255,000 1,440,628 1,695,628 204,000 1,491,628 2,791,292 Less: Ending inventory Gross profit Less: expenses: Insurance Wages and salaries Electricity Telephone charges Rent and rates Carriage (18,000-2,280) Debenture interest (30,000+30,000) Advertising expense Bad debts expense Repair on machinery Depreciation expense-machinery (336,000 - 8,500) *20% Depreciation expense-motor vehicles (605,000-271,688) *25% Profit before tax Income tax expense Net profit after tax Other comprehensive income: 25,000 862,500 53,000 13,000 636,000 15,720 60,000 350,000 33,330 8,500 65,500 83,328 2,205,878 585,414 100,000 485,414 Total comprehensive income 485,414

Answer-b:

Mac Limited. Statement of Financial Positions For the Year Ended October 31, 2019 $ Non-current assets Property, Plant and Equipment: Machinery (336,000 - 8,500) - 73,840-65,500 Motor vehicle (605,000 -83,328-271,688) 188160 249984 438,144 Current assets Bank Inventory Prepayment, wages and salaries Trade receivable (553,800-1,500-(25,400+33,330-1,500)) 2364300 204000 22000 495070 3,085,370 3,523,514 Equity Share capital Retained earnings (446,500+485,414-55,000) General Reserve (16,000+55,000) 600000 876914 71000 1,547,914 Non-current liabilities 5% debentures 1,200,000 Current liabilities Trade payable Other payables (30,000+17,600+100000) 628000 147600 775,600 3,523,514