PALASH KUMAR KUNDU

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Contact: 01720-502-206

The following balances have been extracted from the books of DLH limited for the .
year ended JO June:
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DistributiOn costs
Administration expenses
Trade receiVables (debtors}
Tr{l({e payables (Crfi'litors).
Ordinary DMdends P.afd
: <n :()r>dfne\fY share capital
Revenue
long term Loan
land at cost.

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7500
3680
4085

2574
s.

250

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6000/

Plant ft Machinery

4500

FtxturS at cost
Mc;>tor vehicles at cost_
Ordinary goods purchased for resale
(Purchases)

Ca5h ~nd cash .eC:luivalents

Ret~ined earnings from previous years
G~neral Reserve
Inventories (Stock)
Share premium
Plant Machinery - accumulated
depreciation
.Fixtures.~ ~ccumulateddepredation
--~t~'1f'ifeles:. acc_umulated
depreciation

2000
3520
15778

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: ..

150

1015
800 '
6840
1500

._,.,

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5000
30850'
8000.

1850
1226
1788

FURTHER INFORMATION

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1. The ordinary shares have a nominal value of $1

2 .. During the year the company paid an interim dividend. The proposed final
~ividend is $0.15 per share.

3. The dosing inventory (stock) was valued at $7800 thousand.

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- 4~ The tax charge for the year has been estimated at St020 thousand. . . .
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5. lntere5t on-the long term loan is charged at the rate c>f11%' per annurn. . -
~ 6. The land has been revalued at $5500 thousand. This has not been actioned in
the books.
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7. It was decided to transfer $200 thousand of the profit to the general reserve

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REQUIRED

i4-!~"'m~!i1t"c:ome
e:yeafend:

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Statement for the year and a Statement of Financial Position at . .

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The following balances have been extracted from the books of JAH Ltd at 31 December

Details

Amount ($)

Revenue

15000

Trade receivables

1200

Purchase of goods for resale

5000

Trade payables

800

Opening inventory

500

Share capital

1500

Share premium

300

General reserve

800

Bank interest paid

50

Loan interest paid

150

Office salaries

2400

Heat and light

1950

Rent and rates

1860

Retained earnings

240

Bank account

40

Bank loan

600

Advertising

1650

Bank interest received

20

Non- current assets at cost

4300

Interim dividend paid

160

Additional infoqnatio11

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l ct6sing inventory was valued at $500.

2 Heat and light of $260 was o'.Ying and rent of $240 was prepaid

3 Nqn'." current asse.ts.are to be depreciated;

by1~~0%
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3 Th~ 4irectOJ~ ~re proposing Ii final d~videl).t(l"~fi.$Q.20.per share

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4 Th~ directors intend to transfer $100 to thegenetal-f reserve.

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5 The company has been advised that it is 40o/o;lik~ly to haveto pay legal cost.~Jtt::. . , _, ':;:
resmct of sales of defective productS
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REQUIRED

1 Pr.~pannoooompany's Incomestatenieritfor tlie, year

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muc~ detail as possible

ended

3 rmfoember

2 P~pare the Statement of changes in equity fof:tlle year

_statement Of financia~-po~ition at 31 December i~1~ ~tJ~

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4 Potpare notes to accompany the published accounts in respecrofitems

norshoWififi

the financial statements you have prepared .

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5 ~te any other items wh.ich must be inclu~4 ~\published accounts which Y~Y;h~~~
not Utcluded in-youranswer. State how the pu'6lished accountswttl differ form the :
statefiients you have prepared
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6 Inqicate how the IAS will affect the calculatig,n 9f any ratios you will have tQ,;"' . .: ~::;, .. / .' '
calCJ11ate:-..forcexample.~dividend.yieldanddiviif~rittpershareROeE~etc~~:.:'::::?.~ .. ?5t.5':!:'.!

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7 L~t6 items which mustbe ineiudedin.the d~getor!sreport

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IAS QUESTIONS
1. At the start of the. year the Equ~ty section of~ limited company's Statement of
Financial position is:

$000
. 2,000,
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500
1200
\000.

Share.~pital ~$1 shares).

Share premium

General reserve
Retained earnings
During the year the following took place:
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1. The company made a profit attributable to equity holders of~:809 000~

2. The company paid a final dividend from last year of $400 000
3. An interim dividend of $0.10 per share on shares held at the ;;f~.ofthe :>;'ear -.

was paid
4. 500 000 additional shares were issued at $1.50 each
5. The directors revalued land from $1 000 000 to $1 500 000
6. The directors transferred

$3oc?ob 0 to general ~eserves

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7. The directors proposeci a, fia\dtyiPeP.9 o~~p.2.5per spare

REQUffiED

2. A company values inventory in line with IAS2. For month 1 the following
sq~~ -We~e isHQ"~c;J;.
Direct materials $8840
p~re<:;t .laP<?H~1~P~~P1,;;:u
Factory overheads $4420
Selling and distribution costs $11 050
There was no op~nwg inye~i~[i~;~HrtPg ..tfie~oJiiil;i~~ G9Il1P~ .prp~~c~~ ~d s~ld
2000 fully,~Il1P.~etfl,U1l~tS;.;At:~~eceff41ofl~~~%~ii~b:O;tll1~~he9 llit~ were ~stock.
20 units partfinished units were also in stoG~,;flieY~.ere 59% :C.C)Il1plete i.re~pect of
direct materials, labour and factory overheads.
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The finished goods could be sold for $20 each.