Q15.July-2023
.xlsx
School
University of Dhaka**We aren't endorsed by this school
Course
ACCOUNTING AUDITING
Subject
Accounting
Date
Dec 17, 2024
Pages
8
Uploaded by PrivateValor11079
M/S Ltd.Statement of Company’s Financial PositionAs at June 30, 2023ParticularsNotemount (Tk.)Amount (Tk.)Non-current assets:Property, Plant & equipment91,818,250 Total non-current assets1,818,250 Current assets:Closing inventory1,150,000 Advance rent40,000 Prepaid interest on bank loan12,000 Investment in shares1,280,000 Cash in hand70,000 Accrued dividend income20,000 Trade receivables62,151,000 Cash at bank760,500 Total current assets4,783,500 Total assets6,601,750 Equity & liabilitiesShareholder’s equity:1Share Capital2,000,000 Retained earnings2,321,750 Total equity4,321,750 Non-current liabilities:9% loan81,100,000 Current liabilities:Accrued salaries & wages10,000 Provision for diminution in value of investments80,000 Sundry payable1,090,000 Current liabilities1,180,000 Total equity & liabilities6,601,750 Amount (Tk.)Amount (Tk.)
M/S Ltd.atement of Profit & Loss account and Comprehensive IncomFor the year ended June 30, 2023ParticularsNoteAmount (Tk.)Revenue11,160,000 Less. Cost of sales27,015,500 Gross profit4,144,500 Add. Other operating income22,000 Less. Selling & distribution costs5127,000 Less. Administrative expenses31,630,750 Profit/loss from operations2,408,750 Less. Finance cost4108,000 Add. Investment income10180,000 Profit/(loss) before tax2,480,750 Less. Income tax expense79,000 2,401,750 Less: Provision for diminution in value of investments80,000 (1,280,000-1,200,2,321,750 Note: Drawings to be treated as Income tax.Profit/(loss)/Retained earnings for the period
,000)
Note: 1 Statement of Changes in EquityParticularsOpening Balance###Add. Profit during the year- ###Total######Share CapitalRetained Earnings
Note to the accounts2. Cost of Sales:Opening inventory570,000 Add: Purchase7,580,000 Add: Carriage inward15,500 Less: Closing inventory######3. Administrative expensesSundry expenses344,000 Rent & rates300,000 Less: Advance rent(40,000)Salaries & wages690,000 Add: Accrued10,000 Add: Depreciation on electrial appliances90,000 Add: Depreciation on furniture35,000 Add: Depreciation on vehicles201,750 ###4. Finance costInterest on loan (as per trial balance)120,000 Less: Interest should be charged for 9 months in P/L acco108,000 [(1,600,000 x 9%)/12]xExcess provision12,000 5. Selling & distribution cost:Bad debt8,000 Add: New provision119,000 127,000 6. Trade receivablesAs per trial balance###Less: Old provision(110,000)Less: New provision(119,000)###7. Cash at BankAs per trial balance560,500 Less: Loan (principal) repayment(500,000)60,500 8. 9% loanAs per trial balance###Less: Loan (principal) repayment(500,000)###9. Property, Plant & EquElectricalFurniturevehicleTotalAs per TB450,000 350,000 1,345,000 2,145,000 Less: Current year depreciat 90,000 35,000 201,750 326,750 360,000 315,000 ######10. Investment income:Dividend income160,000 Add: Accrued dividend20,000 180,000
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Jul-23Question:Requirements:a) Show an extract from the PPE table for 20X8 relating to the asset held for sale.b) Show the journal entry to record the classification as held for sale.c) Show the entry in the statement of profit or loss for the year ended 31 December 20X8.Answer:a) Note showing movements on PPE (extract)Cost:1 January, 20X5100,000 Less: Classified as held for sale(100,000)At 31 December, 20X8 - Accumulated Depreciation:At 1 January 20X8 [(100,000-10,000)/10] x 327,000 Impairment loss:Written down value (100,000-27,000 73,000 Fair value (40,000-2,000)38,000 35,000 Assets classified as held for sale62,000 At 31 December, 20X8- b)For impairment loss:Profit & Loss a/c (Impairment Loss) -Dr.35,000 Accumulated depreciation Cr.35,000 Asset held for sale:Non-current asset held for sale- (40,000-2,000)Dr. 38,000 Accumulated depreciationDr. 62,000 PPE-CostCr, 100,000 c) The entry in the statement of profit or loss for the year ended 31 December 20X8.Impairment loss on reclassification of non-current assets held for 35,000 d)Statement of profit or loss for the year ended 31 December 20X8 With sales proceed of Tk.32,000An item of property, plant and equipment (PPE) was acquired on 1 January 20X5 at a cost of BDT100,000. A residual value of BDT 10,000 and a useful life of 10 years was assumed for the purpose of depreciation charges.On 1 January 20X8 the asset was classified as held for sale. Its fair value was estimated at BDT 40,000 and the costs to sell at BDT 2,000. The asset was sold on 30 June 20X8 for BDT 38,000.d) Describe how the answer to (c) would change if the sales proceeds on 30 June 20X8 were BDT 32,000.
i) The impairment loss would remain the sameii) A loss on disposal of Tk.6,000 (38,000-32,000) would be included.