Question

Q1.

The trial balance of Beta PLC as at 30^th September 2020 was as follows:

                                                                                                            Dr                Cr

                                                                                                            K                     K

Revenue                                                                                                                      380,000

Material purchases                                                                              64,000

Production labour                                                                               124,000

Factory overheads                                                                               80,000

Distribution cost                                                                                 14,200

Administrative cost                                                                             46,000

Finance costs                                                                                            350

Investment income                                                                                                                  800

Leasehold property at cost                                                                  50,000

Plant and equipment at cost                                                                44,500

-Accumulated depreciation                                                                                               10,000

-Plant and equipment                                                                                                         14,500

Investment cost                                                                                   18,000

Inventory                                                                                            46,700

Trade receivables                                                                                33,550

Trade payables                                                                                                                 27,000

Bank                                                                                                                                  2,300

Ordinary share capital                                                                                                        50,000

Retained profits                                                                                                                 33,600

Deferred Tax                                                                                                                       2,700

                                                                                                            521,700                521,700

Notes:

1. Inventory of finished goods on promises of Beta PLC at 30 Sept 2020 was counted and valued at k54,800.
2. All plant and equipment is depreciated at 20% per annum using the reducing balance method with time apportionment in the year of purchase.

The directors decided to revalue the leased property in line with recent increases in markets values. On 1^st October 2019 an independent surveyor valued the leased property at k48,000, which the directors have accepted. The leased property was being amortised over an original life of 20 years which has not changed. Beta PLC does not make a transfer to retained earnings in respect of excess amortization.

3. Provide for corporate tax for the year for k24300
4. Included in production labour is the cost of k10,000 pertaining to the construction of plant and equipment.

Required :

1. Prepare a statement of profit or loss and other comprehensive income for the year ending 30^th September 2020 in accordance with the companies Act and international accounting standards.
2. Prepare a statement of financial position as at 30^th September 2020 in accordance with companies Act and international accounting standards .

Answer 1

1	Statement of Profit & Loss A/c and Other Comprehensive Income
	For the year ended 30-09-2012
	Particulars		Amount
	Revenue		3,80,000
	Investment Income		800
	Total Income		3,80,800
	Expenses:-		3,21,450
	Material purchases	64,000
	Production labour	1,14,000
	Factory O/H	80,000
	Distribution cost	14,200
	Administration cost	46,000
	Finance cost	350
	Increase in Inventories	-8,100
	( 54,800-46,700)
	Depreciation	11,000
	Net Profit before tax		59,350
	Less: Tax Expense		-24,300
	Net profit after tax		35,050
	Other comprehensive Income
	Add: Unrealised gain on revaluation of leasehold property		8,000
	Total Comprehensive Income		43,050

2	Statement of Financial Position as on 30-09-2012
	Particulars		Amount
	Equities & Liabilities
	Ordinary Share capital		50,000
	Retained Profit	33,600	76,650
	Add: During the period	43,050
	Deferred Tax Liability		2,700
	Current Liabilities
	Trade Payable		27,000
	Bank O/d		2,300
	Corporate Tax payable		24,300
	Difference trial balance (net)		400
	(800 credit total - 400 debit total)
	Total Equities & Liabilities		1,83,350
	Assets
	Non-current Assets
	Fixed Assets
	Leasehold property at cost	58,000	45,000
	Less:accumulated Depreciation	13,000
	Plant & Equipment at cost	54,500	32,000
	Less:accumulated Depreciation	22,500
	Investment Cost		18,000
	Current Assets
	Inventory		54,800
	Trade Receivables		33,550
	Total Assets		1,83,350