Contemporary Issues in Financial Accounting: Online Exam

ONLINE EXAM
CONTEMPORARY ISSUES
IN FINANCIAL
ACCOUNTING

TABLE OF CONTENTS
Table of Contents
MAIN BODY..................................................................................................................................................3
SECTION- A ..................................................................................................................................................3
SECTION- B...................................................................................................................................................5
Question B1 ...........................................................................................................................................5
Question B2 ...........................................................................................................................................6
Question B3............................................................................................................................................6
Question B4 ...........................................................................................................................................7
Question B5............................................................................................................................................9
Question B6..........................................................................................................................................10
REFERENCES..............................................................................................................................................12

MAIN BODY
SECTION- A
a) Statement of total comprehensive income
Particulars Amount
Revenue 11600000
(-) Cost of sales 4000000
Gross Profit 7600000
(-) Distribution cost 2134050
(-) Administration expenses 3400000
(-) Interest paid 130000
(-) Finance charge 27500
(-) Depreciation 300000
1608450
(-) Tax 25 % 402112.5
Net Profit 1206337.5
b) Statement of change in equity
Share Capital 4000000
Premium 50000
Reserves 200000

Retained 460000
Profit 1206338
Total 5916338
c) Statement of financial position
Particulars Amount
Assets
Inventory 750000
Land 4000000
Buildings 2040000
Plant 2770000
Trade receivables 1250000
Bank 25000
Current loan 130000
Advance lease 65950
Advance contract 400000
Total 11430950
Liabilities
Trade payable 540000
Allowances for Receivables 50000