You are presented with the following trial balance of Malright, a limited liability company, at 31 October 20X7.
Dr   Cr $\'000   $\'000 Buildings at cost         740 Buildings, accumulated depreciation, 1 November 20X6      60 Plant at cost          220 Plant, accumulated depreciation, 1 November 20X6       110 Land at cost          235 Bank balance            50 Revenue            1,800 Purchases          1,105 Discounts received           90 Returns inwards         35 Wages           180 Energy expenses         105 Inventory at 1 November 20X6       160 Trade payables           250 Trade receivables         320 Administrative expenses        80 Allowance for receivables, at 1 November 20X6       10 Directors\' remuneration        70 Retained earnings at 1 November 20X6        130 10% loan notes           50 Dividend paid          30 $1 ordinary shares           650 Share premium account          80           ______ ______ 3,280   3,280

Additional information as at 31 October 20X7:
(a) Closing inventory has been counted and is valued at $75,000.
(b) The items listed below should be apportioned as indicated.
Cost of   Distribution   Administrative
Sales    costs    expenses
%    %    %
Discounts received    –    –   100
Energy expenses    40    20    40
Wages      40    25    35
Directors\' remuneration   –    –    100
(c) An invoice of $15,000 for energy expenses for October 20X7 has not been received.
(d) Loan note interest has not been paid for the year.
(e) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables. Any expenses connected with receivables should be charged to administrative expenses.
(f) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales.
(g) Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses.
(h) Income tax has been calculated as $45,000 for the year.
Required:
Prepare the following financial statements for Malright in accordance with IAS 1 Presentation of financial statements:

(a) The statement of profit or loss for the year ended 31 October 20X7   

(b) The statement of changes in equity for the year ended 31 October 20X7

(c) The statement of financial position as at 31 October 20X7

Answer rating: 100% (QA)

Balance Sheet Non Current Assets Cost Accumulated Depreciation Net Book Value Land 135 135 Build... View the full answer