You have been asked to help prepare the statement of financial position of Dalmatian Ltd for the

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Question:

You have been asked to help prepare the statement of financial position of Dalmatian Ltd for the year ended 31 March 2011. The company’s trial balance as at 31 March 20X1 is shown below. Further information relating to the financial statements is also provided.

Dalmatian Ltd: Trial balance at 31 March 2011

Debit Credit

P000 P000

Share capital 10,000

Trade and other payables 2,000

Property – cost 32,000

Property – accumulated depreciation at 1 April 2010 6,400

Plant and equipment – cost 9,500

Plant and equipment – accumulated depreciation at 1 April 2010 4,156

Trade and other receivables 750

Accruals 50

5% Bank loan repayable in 2019 5,000

Cash and cash equivalents 1,250

Retained earnings at 31 March 2011 16,544

Inventories at 31 March 2011 650

44,150 44,150

Further information:

The share capital of the company consists of ordinary shares with a nominal value of P1.

Inventories at close of business consist of the following items at cost. Their comparative net realisable values are as follows:

Cost NRV

P000 P000

Furs 500 600

Products 100 75

Toys 50 60

735

Depreciation is to be provided for the year ended 31 March 2011 as follows:

Property 10% per annum Straight line basis

Plant and equipment 25% per annum Diminishing balance basis

Trade receivables include a debt of P75,000 that is to be written off in full. A general allowance of 5% of the remaining debt is required.

Annual insurance of P12,000 has been paid in full for the year ended 31 December 2011. This payment is included in retained earnings in the trial balance.

All of the operations are continuing operations.

Required

Draft the statement of financial position for Dalmatian Ltd as at 31 March 2011.