Accounting Homework: Comprehensive Income and Financial Position

This accounting assignment provides a comprehensive solution for the preparation of financial statements. It includes the creation of an income statement, a statement of financial position, and the necessary journal entries. The income statement presents the calculation of gross profit and operating profit, along with the total comprehensive income for the year ended December 31, 2017. The statement of financial position details the assets, including plant, property, and equipment, capitalised development expenditure, current assets, and liabilities, including equity, non-current, and current liabilities. The assignment highlights key accounting adjustments such as disposal of plant, provision for doubtful debts, and profit on revaluation, demonstrating a solid understanding of accounting principles.

ACCOUNTING - JOURNAL
ENTRIES - ADJUSTMENTS,
STATEMENT OF
COMPREHENSIVE INCOME,
STATEMENT OF
FINANCIAL POSITION

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................1
B) Comprehensive income statement for the year ended 31 December 2017............................1
c) statement of financial position for the year ended 31st December 2017................................1

MAIN BODY
B) Comprehensive income statement for the year ended 31 December 2017
Income statement for the year ended 31st December 2017
Particular Debit credit
Sales 13700000
less: disposal of plant 300000
Less : treated as credit sales 200000
13200000
Cost of sales 9200000
Less : capitalised development expenditure 210000
Add: payable 420000
Add: Capital development expenditure amortised 400000
9810000
gross profit 3390000
less: provision for doubtful debts 251875
operating profit 3138125
Interest 50000
profit before tax 3088125
Add: Profit on revaluation
Land : 200000
Property (800+240) 1040000
1240000
Total comprehensive income for the year 4328125
c) statement of financial position for the year ended 31st December 2017
Balance sheet for the year ended 31 December 2017
1

MAIN BODY
Particular Amount Total
Non current assets
Plant , property equipment 5760000
Patent (140000-28000) 112000
capitalised development expenditure 1810000
Capitalised development accumulated amortisation 400000
7282000
Current assets
Inventory 1750000
Trade receivables 3450000
Less : credit sales includes in sales 200000
3250000
provision for doubtful debts 251875
Cash and cash equivalent 1350000
Less : sales proceed of plant 300000
Add : plant disposal 300000
1350000
Total current assets 6601875
Total assets 13883875
Equity and liabilities
Ordinary shares 1000000
premium shares 600000
retained earnings 4510000
Less : dividend payable 400000
Add : access of deprecation transfer to retained earning 800000 4190000
ARS (1600+200-80) 1720000
Total equity 7510000
2

MAIN BODY
Non current liabilities
bank loan payable 500000
Total 500000
others 1553875
Current liabilities
Trade payable 3450000
Interest payable 50000
Dividend payable 400000
Cost of sales payable 420000
4320000
Total liabilities 13883875
3