Barry has prepared the following draft financial statements for your review Barry: Statement of profit or...

 

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Barry has prepared the following draft financial statements for your review Barry: Statement of profit or loss for year to 31st August 20X1 Revenue Raw materials consumed Manufacturing overheads Increase in inventories of work in progress and finished goods Staff costs Distribution costs Depreciation Interest payable Interim dividend paid Statement of financial position as at 31st August 20X1 Assets Non current assets Freehold land and buildings Plant and machinery Fixtures and fittings Current assets Prepayments Trade receivables Cash at bank Inventories Total assets Equity and liabilities Equity shares Revaluation reserve Accumulated profit Share premium Total equity Current liabilities Non-current liabilities 8% Debentures 20X5 Total equity and liabilities N000 200 7,400 700 4,600 N000 30,000 (9,500) (5,000) 1,400 (4,700) (900) (4,250) (350) (200) 6,500 N000 20,000 14,000 5,600 39,600 12,900 52,500 21,000 5,000 14,000 2,000 42,000 5,300 5,200 52,500 Additional information: Income tax of N2.1 million has yet to be provided for on profits for the current year. An unpaid under-provision for the previous year's liability of N400,000 has been identified on 5th September 20X1 and has not been reflected in the draft accounts. 1 2 3 4 5 There have been no additions to, or disposals of, non-current assets in the year but the assets under construction have been completed in the year at an additional cost of N50,000. These related to plant and machinery. The cost and accumulated depreciation of non-current assets as at 1st September 20X0 were as follows: Freehold land and buildings (land element N10 million) Plant and machinery Fixtures and fittings Assets under construction Cost N000 19,000 20,100 10,000 400 Depreciation N000 3,000 4,000 3,700 There was a revaluation of land and buildings during the year, creating the revaluation reserve of N5 million (land element 1 million). The effect on depreciation has been to increase the buildings charge by $300,000. Barry adopts a policy of transferring the revaluation surplus included in equity to retained earnings as it is realised. Staff costs comprise 70% factory staff, 20% general office staff and 10% goods delivery staff An analysis of depreciation charge shows the following: N000 1,000 2,550 700 Buildings (50% production, 50% administration) Plant and machinery Fixtures and fittings (30% production, 70% administration) Required Prepare the following information in a form suitable for publication for Barry's financial statements for the year ended 31st August 20X1. (a) Statement of profit or loss (b) (c) (d) (8 marks) (8 marks) (6 marks) Statement of financial position Statement of changes in equity Reconciliation of opening and closing property, plant and equipment Barry has prepared the following draft financial statements for your review Barry: Statement of profit or loss for year to 31st August 20X1 Revenue Raw materials consumed Manufacturing overheads Increase in inventories of work in progress and finished goods Staff costs Distribution costs Depreciation Interest payable Interim dividend paid Statement of financial position as at 31st August 20X1 Assets Non current assets Freehold land and buildings Plant and machinery Fixtures and fittings Current assets Prepayments Trade receivables Cash at bank Inventories Total assets Equity and liabilities Equity shares Revaluation reserve Accumulated profit Share premium Total equity Current liabilities Non-current liabilities 8% Debentures 20X5 Total equity and liabilities N000 200 7,400 700 4,600 N000 30,000 (9,500) (5,000) 1,400 (4,700) (900) (4,250) (350) (200) 6,500 N000 20,000 14,000 5,600 39,600 12,900 52,500 21,000 5,000 14,000 2,000 42,000 5,300 5,200 52,500 Additional information: Income tax of N2.1 million has yet to be provided for on profits for the current year. An unpaid under-provision for the previous year's liability of N400,000 has been identified on 5th September 20X1 and has not been reflected in the draft accounts. 1 2 3 4 5 There have been no additions to, or disposals of, non-current assets in the year but the assets under construction have been completed in the year at an additional cost of N50,000. These related to plant and machinery. The cost and accumulated depreciation of non-current assets as at 1st September 20X0 were as follows: Freehold land and buildings (land element N10 million) Plant and machinery Fixtures and fittings Assets under construction Cost N000 19,000 20,100 10,000 400 Depreciation N000 3,000 4,000 3,700 There was a revaluation of land and buildings during the year, creating the revaluation reserve of N5 million (land element 1 million). The effect on depreciation has been to increase the buildings charge by $300,000. Barry adopts a policy of transferring the revaluation surplus included in equity to retained earnings as it is realised. Staff costs comprise 70% factory staff, 20% general office staff and 10% goods delivery staff An analysis of depreciation charge shows the following: N000 1,000 2,550 700 Buildings (50% production, 50% administration) Plant and machinery Fixtures and fittings (30% production, 70% administration) Required Prepare the following information in a form suitable for publication for Barry's financial statements for the year ended 31st August 20X1. (a) Statement of profit or loss (b) (c) (d) (8 marks) (8 marks) (6 marks) Statement of financial position Statement of changes in equity Reconciliation of opening and closing property, plant and equipment

Answer rating: 100% (QA)

Here are the corrected financial statements for Barry a Statement of profit or loss for the year ended 31 August 20X1 Revenue 30000 Cost of sales Raw ... View the full answer