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    Far1 Artt Ias 8 & 33 Test Sol

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    Hassan Tanveer
    The document is the statement of changes in equity for Chakas Limited for the years ended December 31, 2019 and 2020. It shows the opening and closing balances for share capital, share premium, general reserves, translation reserves, and retained earnings for both years. It also lists transactions such as issuance of shares, dividends paid, transfers to reserves, and corrections of prior period errors. Profits for 2019 and 2020 were Rs. 560,000 and Rs. 710,000 respectively, after correcting prior period errors. The errors related to understated depreciation expenses and incorrectly recorded expenses and income from 2016 to 2019.

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    Far1 Artt Ias 8 & 33 Test Sol

    Uploaded by

    Hassan Tanveer
    54 views2 pages
    The document is the statement of changes in equity for Chakas Limited for the years ended December 31, 2019 and 2020. It shows the opening and closing balances for share capital, share premium, general reserves, translation reserves, and retained earnings for both years. It also lists transactions such as issuance of shares, dividends paid, transfers to reserves, and corrections of prior period errors. Profits for 2019 and 2020 were Rs. 560,000 and Rs. 710,000 respectively, after correcting prior period errors. The errors related to understated depreciation expenses and incorrectly recorded expenses and income from 2016 to 2019.

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    FAR1 ARTT IAS 8 & 33 TEST SOL

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    The document is the statement of changes in equity for Chakas Limited for the years ended December 31, 2019 and 2020. It shows the opening and closing balances for share capital, share premium, general reserves, translation reserves, and retained earnings for both years. It also lists transactions such as issuance of shares, dividends paid, transfers to reserves, and corrections of prior period errors. Profits for 2019 and 2020 were Rs. 560,000 and Rs. 710,000 respectively, after correcting prior period errors. The errors related to understated depreciation expenses and incorrectly recorded expenses and income from 2016 to 2019.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    54 views2 pages

    Far1 Artt Ias 8 & 33 Test Sol

    Uploaded by

    Hassan Tanveer
    The document is the statement of changes in equity for Chakas Limited for the years ended December 31, 2019 and 2020. It shows the opening and closing balances for share capital, share premium, general reserves, translation reserves, and retained earnings for both years. It also lists transactions such as issuance of shares, dividends paid, transfers to reserves, and corrections of prior period errors. Profits for 2019 and 2020 were Rs. 560,000 and Rs. 710,000 respectively, after correcting prior period errors. The errors related to understated depreciation expenses and incorrectly recorded expenses and income from 2016 to 2019.

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    Financial Accounting & Reporting-I

    Syed Huzaifa Sami


    ARTT Business School
    Question 1

    Chakas Limited
    Statement of Changes in Equity
    For the year ended December 31, 2019

    Share Share General Translatio Retained


    Capital Premium Reserves n Reserves Earnings
    Opening Balance January 1, 2019 225,000 128,000 97,000 73,000 420,000
    Correction Of Errors
    For the year 2016, 2017 and 2018 (W1) 15,000
    Opening Balance January 1, 2019 Restated 225,000 128,000 97,000 73,000 435,000

    Income For The Year


    Profit For The year Restated (630,000-70,000) 560,000
    Translation income 7,000

    Transaction With Share Holders


    Final Dividend
    - Cash @ 8% (18,000)
    - Bonus @ 12% 27,000 (27,000)
    Issue of shares on April 7, 2019 60,000 48,000
    Interim Dividend
    - Cash @ 12% (37,440)
    - Bonus @ 14% 43,680 (43,680)
    Right Issue 71,136 21,341

    Internal Transfers
    Transfer to general reserves 31,500 (31,500)
    Closing balance December 31, 2019 Restated 426,816 197,341 128,500 80,000 837,380

    Opening Balance January 1, 2020 Restated 426,816 197,341 128,500 80,000 837,380
    Income For The Year
    Profit For The Year (740,000-30,000) 710,000

    Transaction With Share Holders


    Final Dividend
    - Cash @ 15% (64,022)
    Interim Dividend
    - Cash @ 9% (38,413)
    - Bonus @ 12% 51,218 (51,218)
    Issue of shares on August 1, 2020 14,000 7,000

    Internal Transfers
    Transfer to general reserves 35,500 (35,500)
    Closing balance December 31, 2020 492,034 204,341 164,000 80,000 1,358,226

    From The Desk Of Syed Huzaifa Sami Page 1 of 2


    Financial Accounting & Reporting-I
    Syed Huzaifa Sami
    ARTT Business School
    Extracts of Profit And Loss Statement 2020 2019
    Restated
    Profit for the year 710,000 630,000
    Correction of error (70,000)
    710,000 560,000

    Error Note
    Impact on Profit and Loss Statement 2020 2019
    Effect on income (20,000)
    Effect on expense (30,000) (50,000)
    Profit Increase / (Decrease) by (30,000) (70,000)

    Impact on Balance Sheet 2020 2019


    Effect on Assets
    PPE 15,000 45,000
    Income receivable (50,000) (50,000)
    (35,000) (5,000)
    Effect on Liability
    Expense payable 50,000 50,000

    Effect on Equity (85,000) (55,000)


    (35,000) (5,000)
    Workings
    1 - Correction of errors
    2016 2017 2018 2019 2020
    Installation cost expensed out 150,000
    Depreciation understated (15,000) (30,000) (30,000) (30,000) (30,000)
    Expense recorded as income (60,000) (40,000)
    Effect on Profit 135,000 (90,000) (30,000) (70,000) (30,000)

    From The Desk Of Syed Huzaifa Sami Page 2 of 2

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