FINANCE QUESTIONS INTRODUCTION 3 Prepare corrected financial statements of DL vision Ltd for the year ended 30 June 2016

FINANCE QUESTIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1...................................................................................................................................3
Prepare corrected financial statements of DL vision Ltd for the year ended 30 June 2016........3
QUESTION 2...................................................................................................................................5
Provide the journal entries necessary to account for the above transactions and events for the
year ended 31 December 2016 for T. Padroni Ltd.......................................................................5
QUESTION 3...................................................................................................................................7
Prepare the necessary journal entries to record depreciation and the revaluation entries for
each vehicle of LZ Ltd for the year ended 31 December 2016...................................................7
In accounting for a depreciable asset, how does a revaluation increment affect an entity’s
reported profits in subsequent periods.........................................................................................9
QUESTION 4...................................................................................................................................9
Provide the journal entries to account for the impairment loss for Star for the year ended 31
December 2016............................................................................................................................9
1920000- 880000= impaired asset gain.....................................................................................10
1920000 -600000= ....................................................................................................................10
Journal entry for impairment of loss of building.......................................................................10
Journal entry for impairment of loss of Machinery...................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Finance is regarded as one of the important source that uplift the current market status of
an entity (Baum and Crosby, 2014). This project is all about explaining the corporate financial
structure of an entity that focuses on using different financial resources in accomplishing their
needs and the expectations. This report stresses on preparing financial position statements
specifically according to the requirements of AASB 101 that specifically about presentation of
the financial statements. Important approaches used in the corporate financial structure of an
enterprise includes issuing shares of different size and components to be used in an entity as the
business requirements will get fulfilled with the passage of time (Herbener and Rapp, 2016). The
record of all the shares will be used in an entity are taken into considerations for attaining all
desired aims and targets of an entity. This report is also stresses on impairment loss and
revaluation of the assets in an entity.
QUESTION 1
Prepare corrected financial statements of DL vision Ltd for the year ended 30 June 2016
Particulars Amount
Current assets
Cash and cash equivalent 42500
Trade and other receivables 217500
Inventories 310750
Other assets 102500
Total current assets 673250
Non-current assets
Investment in associates 108750
Machinery 91250
Land and building 290000
Intangible assets 362500

Total non-current assets 852500
Total assets 1525750
Current liabilities
Other loan 6250
Bank loan 100000
Trade and other payable 205000
Current tax liabilities 7500
Provision for employee benefit 27500
Provision for warranty 10000
Provisions for restructuring 15500
Total current liabilities 371750
Non-current liabilities
Deferred tax liabilities 25000
Other loan 102500
Bank loan 21500
Provisions for employee benefit 10750
Total non-current liabilities 159750
Total liabilities 531500
Net assets 994250
Equity
Contributed equity 730000
Reserves 3750
Retained earnings 260500