Preparation of P&L a/c, Statement of Changes in Equity, Balance Sheet, Cash Flow Statements, Consolidation Worksheet

Accounting

Table of Contents
QUESTION 1..................................................................................................................................3
1. Preparation of P&L a/c............................................................................................................3
2. Notes preparation for the below mentioned aspects...............................................................4
3. Presenting or illustrating expenses.........................................................................................4
Part b: Preparation of statement of changes in equity.................................................................5
QUESTION 2..................................................................................................................................5
a. Preparing balance sheet \.........................................................................................................5
2. Preparation of notes according to Australian accounting standard Board...............................6
QUESTION 3..................................................................................................................................6
a....................................................................................................................................................6
b...................................................................................................................................................7
QUESTION 4..................................................................................................................................7
a....................................................................................................................................................7
b...................................................................................................................................................9
c....................................................................................................................................................9
QUESTION 5..................................................................................................................................9

QUESTION 1
1. Preparation of P&L a/c
P&L for the year ended at 30 June 2016
Particulars
Amoun
t (in £) Particulars
Amoun
t (in £)
Cost of sales 295
Sales
revenue 1055
Gross profit 760
Distribution
expenses 195 Gross profit 760
Marketing
expenses 85
Commission
received 50
Occupancy
expenses 110
Interest
received 20
Administration
expenses 150
Other expenses 48
Finance cost
expenses 42
Profit on asset
reevaluation 50
Interim dividend 60

Proposed
dividend 85
Net profit before
taxation (5*.30) 5
Tax amount 1.5
NP after tax 3.5
830 830
2. Notes preparation for the below mentioned aspects
 Profit: Net income after taxation which was generated by over the expenses amounted to
£35000. Hence, such amount is used by the business unit for offering dividend to the
shareholders.
Net profit = Total income – operating expenses
 Dividend
Interim dividend: 1500000 * 0.04 = 60000
Proposed dividend = 1700000 *0.05 = 85000
Interim dividend is considered by an accountant while preparing statement of changes in
equity.
 Dividend franking credit: Value of franking credit is $0.02 which in turn allows
company
3. Presenting or illustrating expenses
In the above mentioned illustration direct and indirect expenses are separately included
by the firm. Direct expenditure includes which are associated with production such as COGS. On
the other side, indirect expenses contain information about dividend paid, administration
expenses etc.