Prepare a statement of financial position for abc ltd as at


You need to complete the corporate accounting assignment

Please follow the instructions and please follow the sample answer technique. and give the theory answers with explanation and give the AASB rules.

Problem 1:

The Trial Balance of ABC Ltd at 30 June 2012 as follows:


DR

CR

Share Capital (ordinary shares issued at $2 fully paid)


200,000

General Reserve


25,000

Retained Earnings (1/7/11)


128,400

Revaluation Reserve


85,000

Mortgage Loan


250,000

Bank Overdraft (at Call)


69,200

7% Debenture


80,000

Interest Payable


2,800

Accounts Payable


69,500

Dividend Payable


10,000

Current Tax Liability


52,100

Provision for Employee benefits


34,200

Deferred Tax Liability


18,400

Allowance for Doubtful Debts


12,800

Accumulated Depreciation-Plant and Equipment


42,500

Accumulated Impairment-Goodwill


10,000




Cash

500


Accounts Receivable

58,000


Inventory

87,700


Prepaid Insurance

7,000


Plant & Equipment  

222,500


Land  

220,000


Buildings

380,000


Goodwill

105,000


Deferred Tax Asset

9,800


Sales Revenue


825,000

Cost of Sales

450,000


Administrative Expenses

265,000


Other Expenses

10,000


Interest Revenue


2,500

Dividends Revenue


3,500

Income Tax Expense

       50,400


Dividend Paid

       20,000


Dividends Declared

       10,000


Transfer to General Reserve

       25,000


Total

 1,920,900

 1,920,900

Additional Information:

a) Administrative expenses for the year include interest expense of $28 700.

b) All assets are carried at cost, except for land and buildings which are carried at valuation.

c) During the year, 50 000 shares were issued at issue price of $2 each, payable in full on application.

d) On 30 June 2012, the directors revalued land and buildings. The revaluation was based on an independent valuation received from FJ Holden, Registered Valuer. The valuation was based on fair values. The carrying amounts of land and buildings before the revaluation were    $195 000 and $350 000 respectively.

e) The mortgage loan is repayable in annual instalments of $50 000 due on 1 March each year.

f) The 7% debentures are to be redeemed at 31 March 2013. There is no plan to refinance these debentures in future.

g) The provision for employee benefits consists of:

Annual Leave  $18 000

Long-service Leave   16 200

h) No employee is eligible for long-service leave until 2016.

i) The company tax rate is 30%.

Required:

a. Prepare a statement of comprehensive income for ABC ltd for the year ended 30 June 2012, according to the requirements of AASB 101(classify expenses by function).

b. Prepare a statement of financial position for ABC ltd as at 30 June 2012 to comply with AASB 101.

c. Prepare a statement of changes in equity for ABC ltd for the year ended 30 June 2012, according to the requirements of AASB 101.

Problem 2:

I) A ltd is a catering company specialising in providing catering services to remote area mine sites. Its main theatre of operations is Australia but during the current year the company acquired significant long-term contracts in Pakistan and Nigeria. AASB 114 Segment Reporting requires entities to disclose material geographical segment information but A ltd has failed to comply with this requirement

Required:

Discuss whether the non-disclosure of information about operations in Pakistan and Nigeria would be material.

II)  The statement of financial position of W ltd as at 30 June 2011 includes an asset 'Debenture money receivable $500,000' and a liability 'Debenture $500 000'. Note 12 to the accounts reveals that the issue of the debentures to a private investor was approved by the board of directors on 28 June 2011 but the debenture issue did not take place until July 2011.

Required:

Comment on the accounting treatment of the debenture issue in accordance with the requirements of the AASB 110.

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Financial Accounting: Prepare a statement of financial position for abc ltd as at
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