Required: prepare the statement of profit or loss and other comprehensive income of  clerc for the year ended 31 december 20x9 and the statement of financial position as at 31 december 20x9.

• The interest for the year on the bank loan has not yet been paid .

• land which is not depreciable ,included in the trial balance at value of $110000,at 31 December 20x9 it was revalued to $150000 and his revaluation is to be included in financial statements.

• Depreciation is to be provided for the year 31 December 20x9 as follows :

Building 10%per anum straight line basis plant and machinery    20%per anum  reducing balance basis . As part of the buildings contains the office accomodation and part of the building contain the plant and machinery, the depreciation for building should be allocated between cost of sales and administrative expenses as follows:

cost of sale 40% administrative expenses.   

60% • Included in trade receivables is a balance of $1720 that is considered to be irrecoverable due to customer going into administration and the director of the clerk have decided to write-off this receivables.

• Inventories at the close of business on 31december 20x9 were valued at cost of $19871. Included in this amount was an inventory line at cost of $4000 that due to change in legislation, is now illegal . clerc cloud rectify the item at a cost of $2500 and plans to do so .The items usually retail to customer at $6000.

• The tax charge for the year has been calculated at $7162.

Answer rating: 100% (QA)

Statement of Profit or Loss and Other Comprehensive Income for Clerc for the year ended December 31 ... View the full answer