The following information has been extracted from the books of Baba Ltd for the year to 31 December 2018. DR GH¢ CR GH¢ Sales 3,250,000 Purchases 1,175,000 Administrative expenses 425,000 Interest paid Share capital (ordinary shares of GH¢1 each) 12,500 500,000 Dividend 15,000 Cash at bank and in hand 22,500 Income tax (remaining balance from previous year) Provision for doubtful debt 25,000 225,000 Distribution costs 600,000 Land at cost Buildings: At Cost 275,000 250,000 Accumulated depreciation (at 1 Jan 2018) 120,000 Plant and machinery: At cost Accumulated depreciation (at 1 Jan 2018) 312,500 187,500 Retained earnings (at 1 Jan 2018) 675,000 10% Loan note Inventory (at 1 Jan 2018) 375,000 200,000 Trade receivables and Payables 1,820,000 150,000 5307500 5307500 Additional information Inventory cost at 31 December 2018 was valued at GH¢625,000 but this can be sold for GH¢750,000 with a related selling cost of GH¢112,500. The land was revalued to GH¢375,000 at the end of the year. Buildings are depreciated on a straight-line basis (assuming no residual value) at 5% whiles Plant and machinery is depreciated using a reducing Balance Method at 20% The depreciation charges for the year are to be apportioned as follows: Cost of sales 30%; Administrative expenses 40%; Distribution costs 30% Income taxes for the year are estimated to be GH¢300,000. The year-end provision for doubtful debt is to be increased to GH¢250,000. Provision for doubtful debts is charged to Distribution Cost. Required: Prepare the following financial statements of Baba Limited for publication in accordance with International Financial Reporting Standards (IFRS): Statement of changes in Equity for the year to 31 December 2018 Statement of financial position as at 31 December 2018.

The following information has been extracted from the books of Baba Ltd for the year to 31 December 2018. DR GH¢ CR GH¢ Sales 3,250,000 Purchases 1,175,000 Administrative expenses 425,000 Interest paid Share capital (ordinary shares of GH¢1 each) 12,500 500,000 Dividend 15,000 Cash at bank and in hand 22,500 Income tax (remaining balance from previous year) Provision for doubtful debt 25,000 225,000 Distribution costs 600,000 Land at cost Buildings: At Cost 275,000 250,000 Accumulated depreciation (at 1 Jan 2018) 120,000 Plant and machinery: At cost Accumulated depreciation (at 1 Jan 2018) 312,500 187,500 Retained earnings (at 1 Jan 2018) 675,000 10% Loan note Inventory (at 1 Jan 2018) 375,000 200,000 Trade receivables and Payables 1,820,000 150,000 5307500 5307500 Additional information Inventory cost at 31 December 2018 was valued at GH¢625,000 but this can be sold for GH¢750,000 with a related selling cost of GH¢112,500. The land was revalued to GH¢375,000 at the end of the year. Buildings are depreciated on a straight-line basis (assuming no residual value) at 5% whiles Plant and machinery is depreciated using a reducing Balance Method at 20% The depreciation charges for the year are to be apportioned as follows: Cost of sales 30%; Administrative expenses 40%; Distribution costs 30% Income taxes for the year are estimated to be GH¢300,000. The year-end provision for doubtful debt is to be increased to GH¢250,000. Provision for doubtful debts is charged to Distribution Cost. Required: Prepare the following financial statements of Baba Limited for publication in accordance with International Financial Reporting Standards (IFRS): Statement of changes in Equity for the year to 31 December 2018 Statement of financial position as at 31 December 2018.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...

See similar textbooks

Related questions

Question

The following information has been extracted from the books of Baba Ltd for the year to 31 December 2018.

	DR GH¢	CR GH¢
Sales		3,250,000
Purchases	1,175,000
Administrative expenses	425,000
Interest paid Share capital (ordinary shares of GH¢1 each)	12,500	500,000
Dividend	15,000
Cash at bank and in hand	22,500
Income tax (remaining balance from previous year) Provision for doubtful debt	25,000	225,000
Distribution costs	600,000
Land at cost Buildings: At Cost	275,000 250,000
Accumulated depreciation (at 1 Jan 2018)		120,000
Plant and machinery:
At cost Accumulated depreciation (at 1 Jan 2018)	312,500	187,500
Retained earnings (at 1 Jan 2018)		675,000
10% Loan note Inventory (at 1 Jan 2018)	375,000	200,000
Trade receivables and Payables	1,820,000	150,000
	5307500	5307500

Additional information

Inventory cost at 31 December 2018 was valued at GH¢625,000 but this can be sold for GH¢750,000 with a related selling cost of GH¢112,500.
The land was revalued to GH¢375,000 at the end of the year.
Buildings are depreciated on a straight-line basis (assuming no residual value) at 5% whiles Plant and machinery is depreciated using a reducing Balance Method at 20%
The depreciation charges for the year are to be apportioned as follows: Cost of sales 30%; Administrative expenses 40%; Distribution costs 30%
Income taxes for the year are estimated to be GH¢300,000.
The year-end provision for doubtful debt is to be increased to GH¢250,000. Provision for doubtful debts is charged to Distribution Cost.

Required:

Prepare the following financial statements of Baba Limited for publication in accordance with International Financial Reporting Standards (IFRS):

Statement of changes in Equity for the year to 31 December 2018
Statement of financial position as at 31 December 2018.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.