Page 432 - F1 Integrated Workbook STUDENT 2018

Chapter 25

The following notes are also relevant:
(i) Inventory at 31 March 20X3 was valued at a cost of $19,473.
(ii) Prepaid rent amounted to $2,800.
(iii) Accruals are estimated as follows: Electricity – $946 Wages and salaries –
$2,464
(iv) Depreciation on motor vehicles is to be calculated at 25 per cent per
annum using the reducing-balance method.
(v) Accrued interest on the bank deposit account amounts to $7,200.
(vi) An accrual for income tax of $30,000 is to be made on the profits of the
year.
Required:

(a) Prepare JKL's statement of profit or loss for the year ended 31 March
20X3

(b) Prepare JK'Ls statement of financial position at 31 March 20X3.
Solution
(a) Statement of profit or loss of JKL for the year ended 31 March 20X3

$000 $000
Sales 647,400
Opening inventory 15,400
Purchases 321,874
Carriage inwards 13,256
Closing inventory (19,473)
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(331,057)
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Gross profit 316,343
Carriage outwards 32,460
Electricity (6,994 + 946) 7,940
Local business tax 8,940
Wages and salaries (138,292 + 2,464) 140,756
Postage and stationary 6,984
Rent (14,600 – 2,800) 11,800
Depreciation of vehicles (49,400 – 21,240) × 25% 7,040
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(215,920)
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