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Problem No.4
Problem No.4
4
The following trial balance relates to Inidora Company at March 31, 2016:
₱’000
₱’000
Equity shares of 50 cents each (note (i))
45,000
Share premium (note (i))
5,000
Retained earnings at April 1, 2015
5,100
Leased property (12 years) – at cost (note (ii))
48,000
16,000
Accumulated depreciation of plant and equipment at April 1, 2015
33,500
Inventory at March 31, 2016
25,200
Bank
1,400
Deferred tax (note (iv))
3,200
Trade payables
27,300
Revenue
350,000
Cost of sales
298,700
Distribution costs
16,100
Administrative expenses
26,900
Bank interest
300
Total
₱500,000
₱500,000
The Directors accepted the report of an independent surveyor who valued the leased property at ₱36
million on that date. Inidora has not yet recorded the revaluation. The remaining life of the leased
property is eight years at the date of the revaluation. Inidora makes an annual transfer to retained profits
to reflect the realization of the revaluation reserve. In Inidora’s tax jurisdiction the revaluation does not
give rise to a deferred tax liability.
On April 1, 2015, Inidora acquired an item of plant under a finance lease agreement that had an implicit
finance cost of 10% per annum. The lease payments in the trial balance represent an initial deposit of ₱2
million paid on April 1, 2015 and the first annual rental of ₱6 million paid on March 31, 2016. The lease
agreement requires further annual payments of ₱6 million on March 31 each year for the next four years.
Had the plant not been leased it would have cost ₱25 million to purchase for cash.
Plant and equipment (other than the leased plant) is depreciated at 20% per annum using the reducing
balance method.
No depreciation/amortization has yet been charged on any non-current asset for the year ended March 31,
2016.
Questions:
Based on the above data, compute for the following:
Net profit (loss) for the year ended March 31, 2016
₱9.6M c. (₱9.6M)
₱7.8M d. (₱7.8M)
Current assets
₱56.1M c. ₱55.1M
₱53.9M d. ₱52.1M
Non-current assets
₱89.5M c. ₱64.575M
₱62.7M d. ₱42.7M
Current liabilities
₱32.77M c. ₱31.37M
₱28.7M d. ₱27.3M
Non-current liabilities
₱22.3M c. ₱19.3M
₱18.23M d. ₱15.23M
Basic loss per share for Inidora for the year ended March 31, 2016.
₱.0970 c. ₱.0889
₱.0788 d. ₱.0722