Good living Ltd has the following abridged Trial balances for the yeurs ended 30 June 2018...

  

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Good living Ltd has the following abridged Trial balances for the yeurs ended 30 June 2018 and 2019 2019 2018 NS N$ Gross profit Retained earnings beginning of the year Share capital Profit on disposal of land Dividends paid Income tax expense Net current assets (30 000) (20 000) 10 880 7 000 2 000 2 000 2 000 1 000 3 120 8 000 16 000 1 000 1 920 1 200 Other expenses Machinery at cost Machinery accumulated depreciation Depreciation (straight-line @ 20% per annum) stationery 10 000 18 00X0 18 000 II 200 3 200 3 000 8 000 3 200 Additional information Note 1 The stationery expense of NS3 000 relating to 2018 was paid in 2019 and arose in 2018 only after the company's auditors found an underpayment of stationery expenses relating to 2018.The expense was never recorded in 2018. The amount is said to be material for Good Living company. Note 2 The board of directors of Good Living Ltd re-estimated the residual value of the machinery to be N$I 400. The original value was N$2 000. No machinery was purchased or disposed since 2017. Note 3 The share capital of Good Living has remained constant for some time and the Directors of Good Living are thinking of financing construction of a manufacturing plant starting June 2020. Note 4 Ignore tax implications of the ahove items and maintain taxation as given ahove. Note 5 The following figures are also provided, Revenue (2018, NS40 000:2019, NS 60 00. Gross profit on sales percent hus been constant for both 2018 and 2019 e 50%. Required: 4.1 Prepare the Statement of Profit or Loss and other comprehensive income for year ended 30 June 2019 in accordance with the requirements of IFRS Prepare the Statement of changes in equity showing the retuined carnings only Notes to the financial statements relating to the change in accounting estimates and prior period eTors 8 4.2 5 4.3 7 Total 20 Good living Ltd has the following abridged Trial balances for the yeurs ended 30 June 2018 and 2019 2019 2018 NS N$ Gross profit Retained earnings beginning of the year Share capital Profit on disposal of land Dividends paid Income tax expense Net current assets (30 000) (20 000) 10 880 7 000 2 000 2 000 2 000 1 000 3 120 8 000 16 000 1 000 1 920 1 200 Other expenses Machinery at cost Machinery accumulated depreciation Depreciation (straight-line @ 20% per annum) stationery 10 000 18 00X0 18 000 II 200 3 200 3 000 8 000 3 200 Additional information Note 1 The stationery expense of NS3 000 relating to 2018 was paid in 2019 and arose in 2018 only after the company's auditors found an underpayment of stationery expenses relating to 2018.The expense was never recorded in 2018. The amount is said to be material for Good Living company. Note 2 The board of directors of Good Living Ltd re-estimated the residual value of the machinery to be N$I 400. The original value was N$2 000. No machinery was purchased or disposed since 2017. Note 3 The share capital of Good Living has remained constant for some time and the Directors of Good Living are thinking of financing construction of a manufacturing plant starting June 2020. Note 4 Ignore tax implications of the ahove items and maintain taxation as given ahove. Note 5 The following figures are also provided, Revenue (2018, NS40 000:2019, NS 60 00. Gross profit on sales percent hus been constant for both 2018 and 2019 e 50%. Required: 4.1 Prepare the Statement of Profit or Loss and other comprehensive income for year ended 30 June 2019 in accordance with the requirements of IFRS Prepare the Statement of changes in equity showing the retuined carnings only Notes to the financial statements relating to the change in accounting estimates and prior period eTors 8 4.2 5 4.3 7 Total 20

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43 Notes to financial statement Change in accounting estimation As per IFRS estimation of residual value is reestimated which is necessary to provide ... View the full answer