Page 349 - Microsoft Word - 00 IWB ACCA F7.docx

Answers

Example 1 cont.

Solution

Prince Group statement of profit or loss and other comprehensive income for
the year ended 31 March 20X4
$

Revenue (450 + 240 – 40) 650,000
Cost of sales (260 + 110 – 40 + 3(W1) + 4 (W2)) (337,000)
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Gross profit 313,000
Distribution costs (23.6 + 12) (35,600)
Administrative expenses (27 + 23 + 5) (55,000)
Investment income (4.5 – 3 (W3)) 1,500
Finance costs (1.5 + 1.2) (2,700)

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Profit before tax 221,200
Income tax expense (48 + 27.8) (75,800)
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Profit for the year 145,400

Other comprehensive income
Gain on revaluation of land (2.5 + 1) 3,500
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Total comprehensive income 148,900
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Profit for the year is attributable to:
Owners of parent (balancing figure) 131,900

Non-controlling interest (W4) 13,500
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145,400
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