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    IAS 1 MAC LTD

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    vuchiduc.contact

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    IAS 1 MAC LTD

    Uploaded by

    vuchiduc.contact
    8 views2 pages

    Original Title

    IAS 1 MAC Ltd

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    8 views2 pages

    IAS 1 MAC LTD

    Uploaded by

    vuchiduc.contact

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    The trial balance extracted from the books of MAC Ltd at 30 June 2022 was as follows:

    Account Dr Cr Note
    $000 $000
    Ordinary share capital 5,400
    Retained earnings at 30 June 2022 1,451 7
    Revaluation reserve at 30 June 2022 490 4
    Loan notes 2018 400
    Buildings at valuation at 30 June 2021 4,000 4
    Plant & machinery at cost at 30 June 2021 2,970
    Plant & machinery accumulated depreciation at 30 June 2021 853 3
    Purchases 10,892
    Sales 17,108
    Distribution costs 990
    Administrative expenses 747
    Wages and salaries 2,928 1
    Rent 231 2
    Bad debts 40 8
    Other operating expenses 68
    Finance costs 16
    Trade receivables 1,130
    Trade payables 945
    Inventory at 30 June 2021 1,387 5
    Cash at bank 1,248
    26,647 26,647
    Notes to the trial balance

    1. Wages and salaries to be accrued at 30 June 2022 amounted to $32,000. Wages and
    salaries are to be apportioned as follows:

    Cost of sales 50%


    Distribution costs 30%
    Administrative expenses 20%.

    2. Rent paid in advance and not yet adjusted for at 30 June 2022 amounted to $15,000. Rent
    is to be apportioned as follows:
    2
    Cost of sales /3
    1
    Distribution costs /6
    1
    Administrative expenses /6

    3. There were no purchases or disposal of plant & machinery in the year. Plant & machinery
    is depreciated at 10% on the straight-line basis. All depreciation of plant & machinery is
    to be charged to Cost of Sales.
    4. At 30 June 2022 buildings had a remaining life of 20 years. The company has a policy of
    revaluing buildings at each accounting year end. At 30 June 2022 buildings are valued at
    $4,100,000. Depreciation on buildings is to be allocated as follows:

    Cost of Sales 60%


    Administrative expenses 40%.

    5. Inventory at 30 June 2022 was $1,574,000.

    6. Corporation tax of $242,000 is chargeable upon the company’s profits for the year. This
    sum is not payable until 9 months after the company’s accounting year end.

    7. A dividend on ordinary shares of $540,000 was proposed and confirmed on 29 June 2022
    but has not yet been paid or accounted for.

    8. Allowance for doubtful debts of $4000 is to be created as at 30 June 2022

    9. There were no changes in the company’s ordinary share capital in the year.

    Required

    Prepare the following financial statements for the year ended 30 June 2022 in accordance with the
    requirements of IAS 1 Presentation of Financial Statements.

    a) Statement of Profit & Loss & Other Comprehensive Income.

    b) Statement of Changes in Equity.

    c) Statement of Financial Position.

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