Question No.

The following trial balance has been extracted from the books of account of ABC Limited at 31
December 2019.
RS. 000 RS. 000
Administrative expenses 210  
Share capital (ordinary shares of Rs.1 fully
paid)   600
Trade receivables 470  
Bank overdraft   80
Other income   25
Long term loan   180
Distribution costs 420  
Non-current asset investments 560  
Investment income   75
Plant and equipment    
At cost 750  
Accumulated depreciation (at 01
January 2019)   220
Retained earnings (at 1 January 2019)   240
Purchases 960  
Inventories (at 1 January 2019) 140  
Trade payables   260
Revenue   1950
Dividend paid 120  
3,630 3,630

Additional information
1. Inventories at 31 December 2019 were valued at Rs. 150,000.
2. The income tax expense based on the profit on ordinary activities is estimated to be Rs.
54,000.
3. Interest expense related to Long term Loan amounts Rs. 16,000 has not been recorded in
books to date. This should be charged to administrative expenses.

Required:
a) Prepare Statement of total comprehensive Income for the year ended 31 December
2019. (15 marks)
b) Prepare Statement of Changes in Equity. (5 marks)

Question No. 2

The trial balance of ABC at 31 December 2019 is as follows.

 Rupees in million
Dr Cr
Administration charges 342
Bank account 89
Cash 2
Payables’ ledger 86
Accumulated amortisation on patents at 31 December 2018 5
Accumulated depreciation at 31 December 2018 918
Receivables’ ledger 189
Distribution expenses 175
Property, plant and equipment at cost 2,830
Interest received 20
Issued share capital 400
Loan 18
Patents at cost 26
Accumulated profits 1,562
Purchases 2,542
Sales 3,304
Inventories at 31 December 2018 118

6,313 6,313

The following information is also relevant.

1. Inventories on 31 December 2019 amounted to Rs. 127 million. Included in this balance
were goods that had cost Rs. 150,000. These goods had become damaged during the
year and it is considered that following remedial work the goods could be sold for Rs.
50,000.
2. Current tax of Rs. 75 million is to be provided.
3. The loan is repayable by equal annual instalments over three years.
4. Depreciation/ amortization for the year to 31 December 2019 is to be charged against
cost of sales as follows:
 Property, plant and equipment - 10% reducing balance
 Patent – 5% reducing balance

Required:
c) Prepare Statement of total comprehensive Income for the year ended 31 December
2019. (15 marks)
d) Prepare Statement of Changes in Equity. (5 marks)