Accounting and Financial Reporting

Accounting and Financial
Reporting
1

Question 1
(a)
Statements of comprehensive income
For the year ended 31st December 2018
Particulars Amount (IN $ NZD)
Total Revenue:
Sales 54,00,000
Less: Sales return 675,000
Less: Cost of sales 13,80,000 33,45,000
Gross Profit 33,45,000
Add: Income
Accrued interest on Term Deposit1 647.26
Fees Income 1,47,000
Less: Advance received 1,10,250 36,750
Less: Expenses
Provision for Doubtful Debts2 27,100
Commission on sales 53,000
Wages & Salaries
Administration 510,000
Less: Accrued 48,000 462,000
Finance 270,000
Less: Accrued 51000 219,000
Sales 330,000
Less: Accrued 27,000 303,000
Insurance 30,000
Less: Prepaid 5,000 25,000
Depreciation
On building 27,000
On Machinery 31,500
37,397.26
(12,43,600)
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On Vehicles 96,000
Operating profit before impairment 21,38,797.26
Impairment in patents 21,000
Operating profit after impairment 21,17,797.26
Income tax expenses (30% on
21,17,797.26)
6,35,339.178
Profit or (Loss) for the year 14,82,458.082
Other Comprehensive Income
Profit or (Loss) for the year 14,82,458.082
Gain- asset revaluations 48,000
Loss – Financial assets held for resale (44,000)
Gain – translation of foreign operations 26,000
Total Comprehensive (Loss) or Profit for
the year
15,12,458.082
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Balance sheet
As at 31st December 2018
Assets In NZD ($)
Current Assets
Cash and Cash Equivalents 40,000
Trade and other receivables3 134,900
Inventory 222,000
Prepaid Insurance 5,000
Total Current assets 401,900
Non- current assets
Land 1,350,000
Building (900,000 – 4,000) 896,000
Machinery (210,000 – 10,500) 199,500
Vehicles (480,000 – 96,000) 384,000
Patents (135,000 – 21,000) 114,000
Term deposit 90,000
Trademarks 120,000
Total Non-current assets 31,53,500
Total Assets (Current Assets + Non-
Current Assets)
35,55,400
Liabilities
Current Liabilities
Trade and other payables 62,000
GST Payable 37,000
Accrued expenses 126,000
Total Current Liabilities 225,000
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