The trial balance of ABC at 31 December 2019 is as follows. Rupees in million Rupees in million Dr Cr Administration charges 342 Bank Account 89 Cash 2 Payables’ ledger 86 Accumulated amortization on patents at 31 December 2018 5 Accumulated depreciation at 31 December 2018 918 Receivables’ ledger 189 Distribution expenses 175 Property, plant and equipment at cost 2830 Interest received 20 Issued share capital 400 Loan 18 Patents at cost 26 Accumulated profits 1562 Purchases 2542 Sales 3304 Inventories at 31 December 2018 118 6313 6313 The following information is also relevant. Inventories on 31 December 2019 amounted to Rs. 127 million. Included in this balance were goods that had cost Rs. 150,000. These goods had become damaged during the year and it is considered that following remedial work the goods could be sold for Rs. 50,000. Current tax of Rs. 75 million is to be provided. The loan is repayable by equal annual instalments over three years. Depreciation/ amortization for the year to 31 December 2019 is to be charged against cost of sales as follows: Property, plant and equipment - 10% reducing balance Patent – 5% reducing balance Required: a) Prepare Statement of total comprehensive Income for the year ended 31 December 2019. b) Prepare Statement of Changes in Equity.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 15DQ

See similar textbooks

Related questions

Question

The trial balance of ABC at 31 December 2019 is as follows.

	Rupees in million	Rupees in million
	Dr	Cr
Administration charges	342
Bank Account	89
Cash	2
Payables’ ledger		86
Accumulated amortization on patents at 31 December 2018		5
Accumulated depreciation at 31 December 2018		918
Receivables’ ledger	189
Distribution expenses	175
Property, plant and equipment at cost	2830
Interest received		20
Issued share capital		400
Loan		18
Patents at cost	26
Accumulated profits		1562
Purchases	2542
Sales		3304
Inventories at 31 December 2018	118
	6313	6313

The following information is also relevant.

Inventories on 31 December 2019 amounted to Rs. 127 million. Included in this balance were goods that had cost Rs. 150,000. These goods had become damaged during the year and it is considered that following remedial work the goods could be sold for Rs. 50,000.
Current tax of Rs. 75 million is to be provided.
The loan is repayable by equal annual instalments over three years.
Depreciation/ amortization for the year to 31 December 2019 is to be charged against cost of sales as follows:
- Property, plant and equipment - 10% reducing balance
- Patent – 5% reducing balance

Required:

a) Prepare Statement of total comprehensive Income for the year ended 31 December 2019.
b) Prepare Statement of Changes in Equity.

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.

Similar questions