QUESTION $1[40$ MARKS$]$

The following list of account balances has been prepared by Elephants Ltd$,$ furniture manufacturers, on $31$ December $2022,$ which is the end of the company's accounting period:

Dr

Cr

Rs

Rs

Issued Rs$1$ Ordinary Shares

$50,000$

Share premium

$5,000$

Buildings $($cost$)$

$55,000$

Fixtures and fittings $($cost$)$

$27,000$

Vehicles $($cost$)$

$15,000$

Depreciation as at $1$ January $2022$

Buildings

$3,300$

Fixtures and fittings

$6,750$

Vehicles

$5,400$

Sales

$111,000$

Purchases

$75,000$

Wages and salaries

$12,000$

Other expenses

$8,000$

Inventories $1$ January $2022$

$2,500$

$6\%$ loan stock

$30,000$

Loan stock interest paid

$900$

Interim dividend paid

$2,000$

Receivables

$28,000$

Payables

$15,000$

Retained Earnings at start

$9,500$

Cash

$10,550$

$235,950$

$235,950$

Page $3$ of $7$

Additional information:

The following information are available:

$(1)$ Inventories as at $31$ December $2022$ is Rs $3,400$ valued at cost$.$

$(2)$ Depreciation is to be provided for as follows:

$($i$)$ Buildings $2\%$ per annum straight line

$($ii$)$ Fixtures and fittings $25\%$ straight line

$($iii$)$ Vehicles $20\%$ reducing balance.

$(3)$ Corporation tax for the year is estimated at Rs$3,500.$

$(4)$ Fittings originally costing Rs $2,400$ on which depreciation of Rs $1,200$ had been provided were sold on $31$ December $2022$ for Rs $950.$ No entries have been made in the accounts for the sale nor has any cash been received.

REQUIRED:

Based on IFRS requirement in a form suitable for publication for the financial year ending $31$ December $2022$:

$($a$)$ Statement of profit or loss and other comprehensive income.

$(17$ marks$)$

$($b$)$ Statement of Changes in Equity.

$(8$ marks$)$

$($c$)$ Statement of financial Position for Elephants limited$.$

$(15$ marks$)$