STATEMENT OF PROFIT OR LOSS FOR THE YEAR 31 MARCH 20X9

SALES 325600
(310000-6400+22000)
COS -255100
(234500-6400-1500+1800+5000+8500+13200)
GROSS PROFIT 70500
DISTRIBUTION COST -19500
ADMINISTRATION EXPENSE -27500
FINANCE COST -1248
PROFIT BEFORE TAX 22252
INCOME TAX EXPPENSE -2400
(700+4500-2800)
PROFIT FOR THE YEAR 19852

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20X9

NON CURRENT ASSETS

LEASEHOLD PROPERTY 24900
PLANT & EQUIPMENT 25500
RIGHT OF USE ASSET 10000
SPECIALIST PLANT FOR CONTRACT 6000

CURRENT ASSETS
INVENTORY 28200
TRADE RECIEVABLES 33100
BANK 5500
CONTRACT ASSET 17100

TOTAL ASSETS 150300

EQUITY & LIABILITIES

EQUITY SHARE 40000
RETAINED EARNING 55952

NON CURRENT LIABILITIES

DEFFERED TAX 5600
LEASE LIABILITY 5716

CURRENT LIABILITY
TRADE PAYABLE 33400
LEASE LIABILITY 5132
CURRENT TAX PAYABLE 4500
TOTAL EQUITY & LIABILITIES 150300
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31ST MARCH 20X1

SALES 339650
COS -210250
(207750+2500 DEP) 8% CONVERTIBLE LOAN NOTES
GROSS PROFIT 129400
DISTRIBUTION COST -27500 LIABILITY ELEMENT
ADMINISTRATIVE EXPENSE -30000 (2400*.91+2400*.83+32400*.75)
(30700-1300+600) INTIAL AMOUNT OF LOAN
INTEREST EXPENSE -2847.6 EQUITY ELEMENT
PROFIT BEFORE TAX 69052.4 (30000-28476)
INCOME TAX EXPENSE -19000
PROFIT FOR THE YEAR 50052.4
LOAN AMORTIZATION SCHEDULE
OTHER COMREHENSIVE INCOME
REVALUATION SURPLUS 11250 B/F INTEREST EXP @10%
(15000-3750) 28476 2847.6
TOTAL COMPREHENSIVE INCOM 61302.4 FINANCE COST

STATEMENET OF FINANCIAL POSITION AS AT 31ST MARCH 20X1

NON CURRENT ASSETS
PROPERTY
CURRENT ASSETS
TRADE RECIEVABLES
(47100+10000-600)
INVENTORY
INCOME TAX EXPENSE
CURRENT YEAR TAX
77500 OVER PROVISION OF PREVIOUS YEAR TAX
DEFFERED TAX CHARGE
(6750-2600-3750)
56500
36000

TOTAL ASSETS 170000

EQUITY
EQUITY SHARES 6000
OTHER COMPONENT OF EQUITY
EQUITY OPTION 1524
REVALUATION SURPLUS 11250
RETAINED EARNING 51452.4

NON CURRENT LIABILITIES

DEFFERED TAX 6750
8% CONVERTIBLE LOAN NOTES 28923.6

CURRENT LIABILITIES
FACTOR LOAN 8700
TRADE PAYABLR 24500
BANK OVERDRAFT 11500
CURRET TAX PAYABLE 19400

TOTAL EQUITY & LIABILITIES 170000

 28476
+32400*.75)
-30000
-1524

N SCHEDULE

INTEREST PAID C/F

-2400 28923.6
FINANCE COST NCL ON SOFP

19400
PREVIOUS YEAR TAX -800
400

19000
COST
ACC DEPRECIATION AS AT 1 0
CARRYING VALUE AS AT 1 OC
REVALUED TO

DEPRECIATION FOR THE YEA

PROPERTY
REVALUATION SURPLUS
(48000-40000)
CHARGED TO DEFFERED TAX
TAKEN TO P&L

CURRENT YEAR TAX

DEFFERED TAX CHARGE
(4500-2700)
 PROPERTY PLANT & EQUIPMENT SELF CONSTRUCTED PLANT

50000 40500 10000

ACC DEPRECIATION AS AT 1 0CT 20X0 -10000 -14500
CARRYING VALUE AS AT 1 OCT 20X0 40000 26000 10000
REVALUED TO 48000

DEPRECIATION FOR THE YEAR 30 SEP 20X1 -3000 -5200 -1000

45000 20800 9000

PROPERTY
REVALUATION SURPLUS 8000
(48000-40000)
CHARGED TO DEFFERED TAX -2400
TAKEN TO P&L 5600

CURRENT YEAR TAX 24300

DEFFERED TAX CHARGE 1800
(4500-2700)
26100
SELF CONSTRUCTED PLANT
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 MARCH 20X2
SUSPESE ACCOUNT
REVENUE 350000
COST OF SALES -311000 DR CASH
(298700+4500+2800+5000) CR SUSPENSE ACCOUNT
GROSS PROFIT 39000
GAIN ON INVESTMENT 1200
DISTRIBUTION COST -16100
ADMINISTATIVE EXPENSE -29900 NON CURRENT ASSETS
(26900+3000)
FINANCE COST -2600 LEASED PROPERTY
(300+2300) COST 48000
LOSS BEFORE TAX -8400 ACC DEP AS AT 1 APRIL 20X1 -16000
INCOME TAX REFUND 1800 32000
LOSS FOR THE YEAR -6600 REVALUED TO 36000
DEPRECIATION FOR THE YR -4500
OTHER COMPREHENSIVE INCOME 31500
REVALUATION SURPLUS 4000

TOTAL COMPREHENSIVE LOSSES -2600 TAX REFUND -2400

UNDER PROVISION 800
DEFERRED TAX CREDIT -200
-1800
 13500
13500

LEASED PROPERTY PLANT & EQUIPMENT RIGHT OF USE PLANT

47500 25000
-33500
14000

-2800 -5000
11200 20000
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 SEPTEMBER 20X2
WORKING-1
REVENUE (W-1) 211900
COST OF SALES -144300 REVENUE
(136800+7500 DEP) SALE OF FUTURE 2 YEARS SERVICING
GROSS PROFIT 67600 (600*2*100/75)
DUSTRIBUTION COST -12500
ADMINISTRATIVE EXPENSES -18000
(19000-1000 ISSUE COST)
LOSS ON INVESTMENT -1300
(15700-17000) WORKING-2
INVESTMENT INCOME 400
FINCANCE COST (W-2) -1920 NET LOAN

PROFIT BEFORE TAX 34280 INTEREST EXPENSE

INCOME TAX EXPENSE (W-4) -8300 CASH
LOAN
PROFIT FOR THE YEAR 25980

STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 20X2 WORKING-3

ASSETS

NON-CURRENT ASSETS COST

PLANT & EQUIPMENT (W-3) 42500 ACC DEPRECIATION AS AT 1ST OCT 2
EQUITY INVESTMENT 15700 AMOUNT B/F
DEPRECIATION FOR THE YEAR
CURRENT ASSETS CARRYING VALUE
INVENTORY 24800
TRADE RECIEVABLES 28500
BANK 2900 WORKING-4

TOTAL ASSETS 114400 UNDER PROVISION

CURRENT TAX PROVISION
EQUITY DEFFERED TAX CREDIT
EQUITY SHARES 60000 (1200-5000*20%)
RETAINED EARNING 13280 INCOME TAX EXPENSE
(6500+25980-19200)

NON CURRENT LIABILITIES

6% LOAN NOTES (W-2) 24420
DEFFERED TAX LIABILITY 1000
DEFFERED INCOME 800

CURRENT LIABILITY
TRADE PAYABLES 6700
CURRENT TAX LIABILITY 7400
DEFERRED INCOME 800

TOTAL EQUITY & LIABILITIES 114400

 $'000
213500
UTURE 2 YEARS SERVICING -1600

211900

24000

1920
1500
420

PLANT & EQUIPMENT

83700
ECIATION AS AT 1ST OCT 20X1 -33700
50000
TION FOR THE YEAR -7500
42500

1100
TAX PROVISION 7400
D TAX CREDIT -200

TAX EXPENSE 8300

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 MARCH 20X3 WORKING-1
This transaction will not be regarded as sales.
REVENUE 540000 SALES
(550000-10000 in substance loan) LOAN LIABILITIY
COS (W-4) -420600
GROSS PROFIT 119400 INVENTORY
DISTRIBUTION COST -21500 COST OF SALES
ADMIN EXPENSES -36300
(30900+5400 DIRECTORS BONUSES) INTEREST EXPENSE
FINANCE COST -1200 LOAN
(700+500 RE IN SUBSTANCE LOAN)
PROFIT BEFORE TAX 60400
WORKING-2
INCOME TAX EXPENSE (W-3) -29200
PROFIT FOR THE YEAR 31200 NCA HELD FOR SALE

OTHER COMPREHENSIVE INCOME LOWER OFF:

REVALUATION SURPLUS (W-2) 7000 FV LESS COST T SELL
CARRYING VALUE
TOTAL COMPREHENSIVE INCOME 38200 (9000-5000-4000*20%*6/12)

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20X3

COST
ASSETS ACCUMALATED DEPRECIATION
AT 1APRIL 20X2
NON CURRENT ASSETS AMOUNT B/F
LAND & BUILDING (W-2) 44500 REVALUED TO
PLANT & EQUIPMENT (W-2) 52800 DEPRECIATION FOR THE YEAR
AMOUNT C/F
CURRENT ASSETS
NCA HELD FOR SALE 3600 LAND & BUILDING
INVENTORY 50700 REVALUATION SURPLUS
(43700+7000)
TRADE RECIEVABLES 42200 WORKING-3

TOTAL ASSETS 193800 CURRENT TAX PROVISION

OVER PROVSION
EQUITY DEFFERED TAX CHARGE
EQUITY SHARES 50000 (9400-6200)
RETAINED EARNING 42400
(11200+31200) WORKING-4
REVALUATION SURPLUS 7000
PER TRAIL BALANCE
NON CURRENT LIABILITIES DEPRECIATION FOR THE YEAR (W-2)
DEFFERED TAX LIABILITY 9400 CLOSING INVENTORY RE SUBSTANCE LOAN
IN SUBSTANCE LOAN (W-1) 10500

CURRENT LIABILITY
ACCRUED DIRECTOR BONUS 5400
TRADE PAYABLE 35100
BANK OVERDRAFT 6800
CURRENT TAX LIABILITY 27200

TOTAL EQUITY & LIABILITIES 193800

not be regarded as sales.
10000
10000

7000
7000

500
500

$'000
3600

4200
3600

PLANT & EQUIPMENT LAND BUILDING

85500 10000 50000
-19500 -20000

66000 10000 30000

12000 35000
-13200 -2500
52800 12000 32500

7000
REVALUATION SURPLUS 7000

27200
-1200
3200

29200

411500
THE YEAR (W-2) 16100
Y RE SUBSTANCE LOAN -7000
420600
(a) WORKING-1
ADJUSTED RETAINED EARNING
TOTAL PROFIT
As per trial balance 53250
ADJUSTMENTS CONTRACT PRICE
Contract with customers(W-1) 2000 TOTAL ESTIMATED COST
Depreciation Land & Building (W-2) -2400 (14000+6000)
Depreciation Leased Plant (W-3) -7000 PROFIT
Derecognize Provision (W-5) 150
Finance cost Loan Notes(W-7) -4000 STAGE OF COMPLETION
Finance cost Lease liability (W-4) -2930 (10000/25000)*100
Income tax expense (W-6) -1400
STATEMENT OF PROFIT OR LOSS
Adjusted Retained Earning 37670
REVENUE
COS
STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 20X3 PROFIT

ASSETS STATEMENT OF FINANCIAL POSITION

NON CURRENT ASSETS COST INCURRED TO DATE

LAND & BUILDING (W-2) 52000 PROFIT TO DATE
LEASED PLANT (W-3) 21000 PROGRESS BILLINGS
CONTRACT ASSET (W-1) 6000 CONTRACT ASSET

CURRENT ASSETS WORKING-2

INVENTORY 56600
TRADE RECIEVABLE 38500
AT COST
TOTAL ASSETS 174100 ACCUMULATED DEP AT 1 OCT X2
AMOUNT B/F
EQUITY REVALUED TO
EQUITY SHARES 27000 DEPRECIATION FOR THE YEAR
RETAINED EARNING 37670 AMOUNT C/F
REVALUATION SURPLUS (W-6) 3300
WORKING-3
NON CURRENT LIABILITY
LOAN NOTE (W-7) 44000 AT COST
LEASE LIABILITY (W-4) 16133 ACC DEP AT 1 OCT 20
DEFFERED TAX LIABILITY 7100 AMOUNT B/F
DEP FOR THE YEAR
CURRENT LIABILITY AMOUNT C/F
LEASE LIABILITY 6897
BANK OVERDRAFT 7300 WORKING-4
TRADE PAYABLE 21300
CURRENT TAX LIABILITY 3400 AMOUNT B/F
30 SEP 20X3 29300
TOTAL EQUITY & LIABILITY 174100 30 SEP 20X4 23030

CURRENT LIABILITY
NON CURRENT LIABILITY

WOKRING-5

THE RAMAINING AMOUNT OF $150000

WORKING-6

CURRENT TAX PROVISION

DEFFERED TAX CREDIT
(6000-8000)

DEFFERED TAX CHARGED TO REVALUAT

REVALUED
DEFFERED TAX CHARGE

WORKING-7

BANK
LOAN NOTE

INTEREST EXPENSE
LOAN NOTE
 CONTRACT WITH CUSTOMER

25000
TIMATED COST -20000

5000

COMPLETION 40%

NT OF PROFIT OR LOSS

10000
-8000
2000

NT OF FINANCIAL POSITION

URRED TO DATE 14000

2000
-10000
6000

LAND & BUILDING

LAND BUILDING
12000 48000
LATED DEP AT 1 OCT X2 -10000
12000 38000
16000 38400
TION FOR THE YEAR -2400
16000 36000

LEASED PLANT

35000
-7000
28000
-7000
21000

LEASE LIABILITY
 INTEREST EXP RENTALS AMOUNT C/F
2930 -9200 23030
2303 -9200 16133

6897
16133

PROVISION

AINING AMOUNT OF $150000 DOESN'T MEET THE CRITERIA OF PROVISION THEREFORE IT SHOULD BE REMOVED WHICH WILL RESULT IN I

INCOME TAX

TAX PROVISION 3400

D TAX CREDIT -2000

1400

D TAX CHARGED TO REVALUATION GAIN

4400
D TAX CHARGE -1100
3300

LOAN NOTES

40000
LOAN NOTE 40000

4000
LOAN NOTE 4000
OVED WHICH WILL RESULT IN INCREASE IN RETAINED EARNING.
STATEMENT OF PROFIT OR LOSS FOR THE YEAR 31 MARCH 20X4
WORKING-1
REVENUE 490000
COS -304600 AT COST
(290600+14000 DEPRECIATION) ACCUMULATED DEP AT 1 APRIL X3
GROSS PROFIT 185400 AMOUNT B/F
OPERATING COST -70300 DEP FOR THE YEAR
FINANCE COST -4576 AMOUNT C/F
(900+3676 RE CONVERTIBLE LOAN NOTES)
PROFIT BEFORE TAX 110524 WORKING-2

INCOME TAX EXPENSE (W-3) -34900 PV OF FUTURE CASHFLOWS

PROFIT FOR THE YEAR 75624
2500 0.93
2500 0.86
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20X4 52500 0.79

ASSETS
BANK
NON CURRENT ASSETS LOAN LIABILITY
PLANT & EQUIPMENT (W-1) 98000 EQUITY ELEMENT

CURRENT ASSETS INTEREST EXPENSE

INVENTORY 96000 CASH
TRADE RECIEVABLES 103000 LOAN LIABILITY

TOTAL ASSETS 297000 WORKING-3

EQUITY UNDER PROVSION

EQUITY SHARES 66000 CURRENT TAX PROVSION
SHARE PREMIUM 15000 DEFFERED TAX CHARGE
EQUITY OPTION 4050 (8300-4600)
RETAINED EARNING 90824
(15200+75624)

NON CURRENT ASSETS

5% CONVERTIBLE LOAN NOTES (W-2) 47126
DEFFERED TAX LIABILITY 8300

CURRENT LIABILITY
TRADE PAYABLE 32200
CURRENT TAX LIABILITY 28000
BANK OVERDRAFT 5500

TOTAL EQUITY & LIABILITY 297000

(c)
BASIC EPS CALCULATION 121.5 cents
(75624/62255)
WEIGHTED AVERAGE NUMBER OF SHARES 62255.32
(55000*2.5/2.35*6/12)+(66000*6/12)

BONUS FRACTION 2.5/2.35

THEOREATICAL EX RIGHT PRICE 2.35

1@ 1.6 1.6
5@ 2.5 12.5
6 14.1 14.1/6
 PLANT & EQUIPMENT

155500
LATED DEP AT 1 APRIL X3 -43500
112000
-14000
98000

CONVERTIBALE LOAN NOTE

TURE CASHFLOWS

2325
2150
41475
45950

50000
LOAN LIABILITY 45950
EQUITY ELEMENT 4050

3676
2500
LOAN LIABILITY 1176

3200
TAX PROVSION 28000
D TAX CHARGE 3700

34900
STATEMENT OF PROFIT OR LOSS FOR THE YEAR 31 MARCH 20X4
WORKING-1
REVENUE 400000
COST OF SALES -306100 NET LOAN 19500
(294000+1500 DEP+4000 IMPAIRMENT+6600 DEP) (20000-500)
GROSS PROFIT 93900
DISTRIBUTION COST -26400 INTEREST EXPENSE
ADMIN EXPENSES -33700 CASH
(34200-500 RE LOAN NOTES) LOAN
INVESTMENT INCOME 1200 ACCRUED LOAN
GAIN ON INVETMENT AT FAIR VALUE 1500 WORKING-2
(28000-26500)
FINANCE COST -2150 NCA HELD FOR SALES
(200+1950 RE LOAN NOTE)
PROFIT BEFORE TAX 34350 LOWER OFF:
CARRYING VALUE
INCOME TAX EXPENSE -8800 (45000-6000-1500 DEP)
PROFIT FOR THE YEAR 25550 FV LESS COST TO SELL
(40000*85%-500)
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20X4
ASSETS
PLANT & EQUIPMENT
NON CURRENT ASSETS
PLANT & EQUIPMENT (W-2) 37400 AT COST
INVESTMENT THROUGH FV 28000 ACC DEP AT 1 APRIL X3
AMOUNT B/F
CURRENT ASSETS DEPRECIATION FOR THE YEAR
NCA HELD FOR SALES (W-2) 33500 AMOUNT C/F
INVENTORY 48000
TRADE RECIEVABLE 40700 WORKING-3 INCOME TAX EXPENSE
BANK 15500
CURRENT TAX PROVISION
TOTAL ASSETS 203100 OVER PROVISION
DEFFERED TAX CREDIT
EQUITY (6000-4200)
EQUITY SHARES 40000
OTHER COMPONENT OF EQUITY 20000
RETAINED EARNING 53950
(38400+25550-10000 DIVIDEND)

NON CURRENT LIABILITY

5% LOAN NOTE 20450
DEFFERED TAX LIABILITY 4200

CURRENT LIABILITY
TRADE PAYABLES 52000
CURRENT TAX LIABILITY 12000
ACCRUED LOAN INTEREST 500

TOTAL EQUITY & LIABILITY 203100

(b)
CALCULATION OF EPS
31 MARCH 20X4
BASIC EPS 69.8 Cents
(25550/36595)

WEIGHTED AVERAGE NUMBER OF SHARES 36594.59

(32000*0.82/0.74*9/12)+40000*3/12

BAF 0.82/0.74

THEORETICAL EX RIGHT PRICE 0.74

1@ 0.42 0.42
4@ 0.82 3.28
5 3.7 3.7/5

31 MARCH 20X3
RESTATED EPS 61.4 Cents
(.68*.74/.82)
 1950
500
950
500

33500
NCA HELD FOR SALE 33500
IMPAIRMENT LOSS 4000
37500 LEASE HOLD PROPERTY 37500

33500

EQUIPMENT

67500
-23500
44000
-6600
37400

INCOME TAX EXPENSE

12000
-1400
-1800

8800
(a)
CALCULATION OF ADJUSTED RETAINED EARNING WORKING-1 6% LOAN NOTE
$'000
As per Trial Balance 19500 Issue costs are not charged in SOPL but instead de
ADJUSTMENTS
Add back Issue Cost charged to P&L (W-1) 1000 Bank
Deduct Interest expense on loan notes (W-1) -2610 Loan Note
Depreciation charge for Land & Building (W-2) -2600
Depreciation charge for Plant & Equipment (W-2) -3000 Loan Note
Income Tax Expense (W-3) -800 P&L
Gain on Investment 600
(2600-2000) Interest Expense
Adjusted Retained Earning 12090 Cash
Loan

STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 20X4 WORKING-2 DEPRECIATION

ASSETS LAND
AT COST 5000
NON CURRENT ASSETS ACC DEP AT 1 OCT X3
LAND & BUILDING (W-2) 44400 AMOUNT B/F 5000
PLANT & EQUIPMENT (W-2) 21000 REVALUED TO 8000
INVESTMENTS 2600 DEP FOR THE YEAR
AMOUNT C/F 8000
CURRENT ASSETS 68700

TOTAL ASSETS 136700 LAND & BUILDING

DEFFERED TAX LIABILITY
EQUITY REVALUATION SURPLUS
EQUITY SHARES 40000
REVALUATION SURPLUS (W-2) 9600 WORKING-3 INCOME TAX PROVISION
RETAINED EARNING 12090
CURRENT TAX PROVISION
NON CURRENT LIABILITIES OVER PROVISION
6% LOAN NOTES (W-1) 29810 DEFFERED TAX CREDIT
DEFFERED TAX LIABILITY 4400 (10000*20%-2500)

CURRENT LIABILITIES 40800

(38400+2400 CURRENT TAX)

136700
 6% LOAN NOTE

harged in SOPL but instead deducted from Loan liability. Therefore,

30000
30000

1000
1000

2610
1800
810

DEPRECIATION

BUILDING PLANT & EQUIPMENT

50000 58500
-20000 -34500
30000 24000
39000
-2600 -3000
36400 21000

12000
DEFFERED TAX LIABILITY 2400
REVALUATION SURPLUS 9600

INCOME TAX PROVISION

2400
-1100
-500

800
STATEMENT OF FINANCIAL POSITION AS AT 30 MARCH 20X5
ASSETS

NON CURRENT ASSETS

PROPERTY PLANT & EQUIPMENT (W-3) 42600
RIGHT OF USE (W-3) 6400
INVESTMENT 6500

CURRENT ASSETS
INVENTORY 11700
TRADE RECIEVABLES 20500

TOTAL ASSETS 87700

EQUITY
EQUITY SHARES 35000
RETAINED EARNINGS (W-5) 10810

NON CURRENT ASSETS

8% LOAN NOTES 15000
LEASE LIABILITIY 3747
ENVIRONMENTAL PROVISION 4320
DEFFERED TAX LIABILITY 3000

CURRENT LIABILITES
CURRENT TAX LIABILITY 3500
LEASE LIABILITY 1023
TRADE PAYABLES 9400
BANK OVERDRAFT 1900

(b) 87700
CASHFLOWS FROM INVESTING ACTIVITIES
SALES PROCEEDS FROM DIPOSAL OF INVESTMENTS 1600
PURCHASE OF PP&E -14000
DIVIDEND RECEIVED 300
(500-200)
CASHFLOW FROM FINANCING ACTIVITIES
REDEMPTION OF LOAN NOTES -5000
REPAYMENT OF LEASE LIABILITY -3230
(2300+1500-570)

WORKING-1 8% LOAN NOTES

LOAN NOTES 5000

 SUSPESE ACCOUNT 5800

INTEREST EXPENSE 1600

CASH 800
SUSPENSE ACCOUNT 800

WORKING-2 UNWINDING OF ENVIRONMENTAL PROVISION

INTEREST EXPENSE 320

ENVIRONMENTAL PROVISION 320

WORKING-3 DEPRECIATION

PLANT & EQUIPMENT RIGHT OF USE PLANT

AT COST 77000 8000
ACC DEP AT 1 APRIL X4 -19000
AMOUNT B/F 58000 8000
DEP FOR THE YEAR -15400 -1600
AMOUNT C/F 42600 6400

WORKING-4 LEASE LIABILITY

NET LOAN 5700

AMOUNT B/F INTEREST EXPENSE INTEREST PAID AMOUNT C/F

30-MAR-20X5 5700 570 -1500 4770
30-MAR-20X6 4770 477 -1500 3747

CURRENT LEASE LIABILITY 1023

NON CURRENT LEASE LIABILITIY 3747

WORKING-5 ADJUSTED RETAINED EARNINGS

AS PER TRIAL BALANCE 33100

FINANCE COST ON LOAN NOTES (W-1) -1600
UNWINDING OF ENV PROVISION (W-2) -320
DEPRECIATION ON PLANT & EQUIP (W-3) -15400
DEPRECIATION ON RIGHT OF USE (W-3) -1600
INCOME TAX EXPENSE -3800
(3500+12000*25%-2700)
GAIN ON INVESTMENT 1000
(6000-6500)+500
LEASE INTEREST -570
10810
STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME FOR THE YEAR 30 JUNE 20X5
$'000
REVENUE 113500
COS (W-4) -97700
GROSS PROFIT 15800
DISTRIBUTION COST -2800
ADMINISTRATIVE EXP (W-2) -6300
(6800-500)
INVESTMENT INCOME 300
FINANCE COST (W-2) -1560

PROFIT BEFORE TAX 5440

INCOME TAX EXPENSE (W-3) -2000
PROFIT FOR THE YEAR 3440

OTHER COMPREHENSIVE INCOME

REVALUATION SURPLUS (W-1) 2400

TOTAL COMPREHENSIVE INCOME 5840

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 20X5

SHARE CAPITAL OTHER COMPONENT OF EQUITY

AS AT 1 JULY 20X4 20000 2300
SHARE ISSUE 10000 7000
TOTAL COMPREHENSIVE INCOME
DIVIDEND PAID
AS AT 30 JUNE 20X5 30000 9300

CASGFLOW FROM INVESTING ACTIVITIES

CAPATALISED DEVELOPMENT COST -3200
INVESTMENT INCOME 300
CASHFLOE FROM FINANCING ACTIVITIES
PROCEEDS FROM ISSUE OF SHARES 17000
PROCEEDS FROM ISSUE OF LOAN NOTES 20000
REPAYMENT OF LOAN NOTES -500
DIVIDEND PAID -4000
32500
 WORKING-1

AT COST
ACC DEP AT 1 JULY X4
AMOUNT B/F
DEP FOR THE YEAR
REVALUED TO
AMOUNT C/F

PROPERTY

WORKING-2

LOAN LIABILITY
ADMINISTRATIVE EXP

NET LOAN

AMOUNT B/F
19500
REVALUATION SURPLUS RETAINED EARNING TOTAL EQUITY
3000 6200 31500
17000 WORKING-3
2400 3440 5840
-4000 -4000 CURRENT YEAR TAX
5400 5640 50340 DEFFERED TAX CHARGE

WORKING-4

AS PER TRIAL BALANCE

RESEARCH & DEVELOPMENT COST
(1000*3+1600)
DEP ON PROPERTY
DEP ON PLANT & EQUIP
 DEPRECIATION

PROPERTY PLANT & EQUIPMENT

27100
AT 1 JULY X4 -9100
28500 18000
-1900 -2700
29000
29000 15300

PROPERTY 2400
REVALUATION SURPLUS 2400

5% LOAN NOTES

500
ADMINISTRATIVE EXP 500

19500

INTEREST EXP INTEREST PAID AMOUNT C/F

1560 -1000 20060

INCOME TAX EXPENSE

1200
D TAX CHARGE 800
2000

COST OF SALES

IAL BALANCE 88500

H & DEVELOPMENT COST 4600

1900
LANT & EQUIP 2700
97700
(a) WORKING-1 6% CONVERTIBLE LOAN NOT
ADJUSTMENT FOR PROFIT BEFORE INTEREST & TAX
PV OF FUTURE CASHFLOWS
As Reported 30000 2400 0.93 2232
ADJUSTMENT 2400 0.86 2064
DEPRECIATION ON PROPERTY (W-2) -3200 42400 0.79 33496
DEPRECIATION ON PLANT & EQUIP (W-2) -6600 37792
FRAUD IN THE YEAR ENDED 31 MARCH 20X -250
(700-450) BANK
INTEREST EXPENSE (W-1) -3023.36 LOAN LIABILITY
INCOME TAX EXPENSE (W-3) -2600 EQUITY OPTION
14327
INTEREST EXPENSE
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20X6 CASH
ASSETS LOAN LIABILITY

NON CURRENT ASSETS WORKING-2 NON CURRENT ASSETS

PROPERTY, PLANT & EQUIPMENT 102000

CURRENT ASSETS AT COST

TRADE RECIEVABLES 27300 ACC DEP AT 1 APRIL X5
(28000-700) AMOUNT B/F
OTHER CURRENT ASSETS 9300 DEP CHARGE AT 1 OCT X5

TOTAL ASSETS 138600 REVALUED TO

DEP CHARGE FOR THE YEAR

EQUITY
EQUITY SHARES 50000 PROPERTY
OTHER COMPONENT OF EQUITY 2208 DEFFERED TAX
REVALUATION SURPLUS 6240 REVALUATION SURPLUS
RETAINED EARNING 17377
(3500+14327) WORKING-3 INCOME TAX

NON CURRENT LIABILITIES CURRENT YEAR PROVISION

6% CONVERTIBLE LOAN NOTES 38415 UNDER PROVSION
DEFFERED TAX LIABILITY 3960 DEFFERED TAX CREDIT
(3200-2400)
CURRENT LIABILITY 20400
(17700+2700)
138600

DILUTED EPS
6% CONVERITABLE LOAN NOTES
NO. OF ORDINARY SHARES IF CONVERTED NOW 8000
INCREMENTAL BEFORE TAX SAVING 3023
INCREMENTAL AFTER TAX SAVING 2418.4

DILUTED EPS 14327+2418 28.9 Cents

50000+8000
 6% CONVERTIBLE LOAN NOTES

40000
37792
2208

3023.36
2400
623

NON CURRENT ASSETS

PROPERTY PLANT & EQUIPMENT

75000 72100
-15000 -28100
60000 44000
-1500
58500
66300
-1700 -6600
64600 37400

7800
1560
TION SURPLUS 6240

INCOME TAX

2700
700
-800

2600
(a)
ADJUSTED PROFIT FOR THE YEAR ENDED 31 DEC 20X7

As Reported 2250
ADJUSTMENTS
Contract with customers (W-2) 2000
Invenotry Count Error 390
Depreciation on Property -720
Impairment loss of Property -480
Interest Expense -135

3305

(b)

STATEMENT OF CHANGES IN EQUITY FOR THE Y/E 31 DEC 20X7

SHARE CAPITAL SHARE PREMIUM REVALUATION SURPLUS RETAINED EARNING

AS AT 1 JANUARY X7 20000 3000 800 6270
SHARE ISSUE 4000 -3000 -1000
REVALUATION LOSS -800
PROFIT FOR THE YEAR 3305
CONVERITABLE LOAN NOTE ISSUE
DIVIDEND PAID -3620
AS AT 31 DEC 20X7 24000 0 0 4955

(c)
STATEMENT OF FINANCIAL POSITION AS AT 31 DEC 20X7

ASSETS

NON CURRENT ASSETS

PROPERTY 16000

CURRENT ASSETS
CONTRACT ASSET 2500
INVENTORY 4700
TRADE RECIEVABLE 5510
CASH 10320

TOTAL ASSETS 39030

EQUITY
EQUITY SHARES 24000
OTHER COMPONENT OF EQUITY 425
RETAINED EARNING 4955

NON CURRENT LIABILITIES

4% CONVERTIBLE LOAN NOTES 7710

CURRENT LIABILITIES 1940

TOTAL EQUITY & LIABILITY 39030

 WORKING-1 4% CONVERTIBLE LOAN NOTES

PV OF FUTURE CASHFLOWS
320 0.943 301.76
320 0.89 284.8
8320 0.84 6988.8
7575.36

BANK 8000
LOAN LIABILITY 7575
EQUITY OPTION 425

INTEREST EXPENSE 454.5

CASH 320
LOAN LIABILITY 134.5

RETAINED EARNING OPTION WORKING-2 CONTRACT WITH CUSTOMER

TOTAL CONTRACT PRICE 14000

TOTAL ESTIMATED COST -9000
TOTAL PROFIT 5000
425
STAGE OF COMPLETION=40%
425
STATEMENT OF PROFIT OR LOSS
REVENUE 5600
COS -3600
PROFIT 2000

STATEMENT OF FINANCIAL POSITION

ACTUAL COST INCURRED 1900
PROFIT EARNED TILL DATE 2000
PROGRESS BILLINGS -1400
CONTRACT ASSET 2500

WORKING-3 PROPERTY

AMOUNT B/F 18000

DEP FOR THE YEAR -720
17280
REVALUED TO 16000
AMOUNT C/F 16000

IMPAIRMENT LOSS 480

REVALUATION SURPLUS 800
PROPERTY 1280
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 20X8

REVENUE (W-1) 45900

(43200+2700)
COST OF SALES -23200
(21700+1500)
GROSS PROFIT 22700
OPERATING EXPENSES -14532
(13520+120 W-2-8W-5+900 FRAUD)
INVESTMENT INCOME 120
FINANCE COST -2012
(1240+86 W-4+46 W-2+640 W-6)
PROFIT BEFORE TAX 6276
INCOME TAX EXPENSE -1470
PROFIT FOR THE YEAR 4806

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 20X8

SHARE CAPITAL SHARE PREMIUM OPTION RETAINED EARNING

BALANCE AS AT 1 JULY 20X7 12200 180 35400
PRIOR PERIOD ERROR -1600
SHARE ISSUE 1500 1800
TOTAL COMPREHENSIVE INCOME 4806
BALANCE AS AT 30 JUNE 20X8 13700 1800 180 38606

BASIC EARNING PER SHARE 36.4 Cents

EARNINGS 4806
WEIGHTED AVERAGE NO. OF SHARES 13200
(12200*4/12+13700*8/12)
 WORKING-1 CONTRACT WITH CUSTOMER

TOTAL CONTRACT PRICE 9000

TOTAL ESTIMATED COST -5000
TOTAL PROFIT 4000

STAGE OF COMPLETION 80%

AS PER STATEMENT OF PROFIT OR LOSS

REVENUE 2700
COST OF SALES -1500
PROFIT 1200

WORKING-2 PROVISION FOR COURT CASE

P&L 920
PROVISION 920

INTEREST EXPENSE 46
TOTAL PROVISION 46
47780
-1600 WORKING-3 INCOME TAX EXPENSE
3300
4806 CURRENT YEAR TAX PROVISION 2100
54286 OVER PROVISION -130
DEFFERED TAX CREDIT -500
1470

WORKING-4 6% CONVERTIBLE LOAN NOTES

PV OF FUTURE CASH FLOWS

300 0.926 277.8
5300 0.857 4542.1
4819.9

LOAN LIABILITY 4820

INTEREST EXPENSE 385.6

CASH 300
LOAN LIABILITY 85.6

WORKING-5 PROPERTY

INTEREST TO BE CAPITALISED IN RESPECT OF ISSUED LOAN 1920

(2560*10%*9/12)
INTEREST EXPENSE 640
REVISED COST OF PROPERTY 31360
(32000-2560+1920)
REVISED DEPRECIATION CHARGE 392
(31360/20*(3/12))
STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME FOR THE YEAR 31 DEC 20X8

REVENUE 80632
(75350+3407 W-1+1875 W-2)
COST OF SALES -46410
GROSS PROFIT 34222
OPERATING EXPENSES -20240
(20640-400\)
INVESTMENT INCOME 2118
(1520+302+296)
FV GAIN ON INVESTMENT PROPERTY 4000
EXCHANGE GAIN 125
FINANCE COST -4050
PROFIT BEFORE TAX 16175
INCOME TAX EXPENSE -3330
PROFIT FOR THE YEAR 12845

OTHER COMPREHENSIVE INCOME

REVALUATION SURPLUS 9000

TOTAL COMPREHENSIVE INCOME 21845

BASIC EPS 30.7 Cents

EARNINGS 12845
WEIGHTED AVERAGE NO. OF SHARES 41870
(30000*3.1/2.9*3/12+35000*3.1/2.9*3/12+49000*9/12)

BAF 3.1/2.9

THEORETICAL EX RIGHT PRICE

2@ 2.4 4.8
5@ 3.1 15.5
7 20.3 2.9
WORKING-1 SALES WITH SIGNIFICANT FINANCING COMPONENT

TRADE RECIEVABLE 7407.2

REVENUE 7407.2

TRADE RECIEVABLE 296.28

INVESTMENT INCOME 296.28

ALREADY A REVENUE OF $4 MILLION HAS BEEN RECOGNISED, SO WE NEED TO INCREASE THE REVENUE BY $3.407 ONLY.
ALSO, THE RECIEVABLES WILL BE INCREASED BY $0.296 MILLON AFTER THE SPAN OF SIX MONTHS , THIS EFFECT WILL BE TAKE
AS INCOME IN STATEMNE TOF PROFIT OR LOSS

WORKING-2 OVERSEAS SALES

AT 1 DECEMBER 20X8,

TRADE RECIEVABLES 1875

SALES 1875

AT 31 DECEMBER 20X8,

TRADE RECIEVABLE 125

EXCHANGE GAIN 125

WORKING-3 BONDS

BOND ASSET 400

OPERATING EXP 400

CASH 450
BOND ASSET 302
INVESTMENT INCOME 752

WORKING-4 REVALUATION

HEAD OFFICE 12000

REVALUATION SURPLUS 9000
DEFFERED TAX CHARGE 3000

INVESTMENT PROPERTY 4000

P&L 4000

WORKING-5 INCOME TAX EXPENSE

CURRENT YEAR TAX PROVISION 3200

UNDER PROVISION 130
3330
EVENUE BY $3.407 ONLY.
HS , THIS EFFECT WILL BE TAKEN
(a)
ADJUSTED RETAINED EARNING AS AT 30 SEPTEMBER 20X5 WORKING-1
$'000
AS REPORTED 15500
ADD BACK ISSUE COST 1000 AT COST
EXCESS INTEREST CHARGE -2610 ACCUMULATED DEP AS AT 1 OCT X4
(29000*9%) AMOUNT B/F
GAIN ON DISPOSAL OF 1ST INVESTMENT PROPERTY 2000 REVALUED TO
(17000-15000) ADDITIONS
GAIN ON FV OF 2ND INVESTMENT PROPERTY 1000 DEPRECIATION CHARGE
(6000-5000) AMOUNT C/F
DEPRECIATION CHARGE ON LAND & BUILDING (W-1) -2825
(2600+225)
DEPRECIATION CHARGE ON PLANT & EQUIP (W-1) -3000 WOKRING-2
INCOME TAX EXPENSE (W-2) -800
ADJUSTED RETAINED EARNING 10265 CURRENT TAX PROVISION
OVER PROVISION
(b) DEFFERED TAX CREDIT
STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 20X5 INCOME TAX EXPENSE

ASSETS

NON CURRENT ASSETS

LAND & BUILDING 50175
PLANT & EQUIPMENT 21000

CURRENT ASSETS 68700

TOTAL ASSETS 139875

EQUITY
EQUITY SHARE 20000
RETAINED EARNING 10265
REVALUATION SURPLUS 25600

NON CURRENT ASSETS

6% LOAN NOTE 29810
DEFFERED TAX LIABILITY 8400

CURRENT LIABILITIES 45800

TOTAL EQUITY & LIABILITIESD 139875

CASHFLOW FROM OPERATING ACTIVITIES

PROFIT ON DISPOSAL OF INVESTMENT PROPERTY -2000
DEPRECIATION CHARGE 5825
GAIN ON REVALUATION OF INVESTMENT PROPERTY -1000

CASHFLOW FROM INVESTING PROPERTY

SALE PROCEEDS FROM DIPSOSAL OF PROPERTY 17000
 DEPRECIATION CHARGE

LAND BUILDING TRANSFERRED INVESTMENT PROPERTY

5000 30000
LATED DEP AS AT 1 OCT X4 -20000
5000 10000
8000 39000
6000
TION CHARGE -2600 -225
8000 36400 5775

INCOME TAX EXPENSE

TAX PROVISION 2400

-1100
D TAX CREDIT -500
TAX EXPENSE 800
PLANT & EQUIPEMNT
58500
-34500
24000

-3000
21000