The following trial balance has been extracted from the books of Walrus plc as at 31 March 2018:

The following information is also available:

1. The company's non-depreciable land was valued at ?300,000 on 31 March 2018 and this valuation is to be incorporated into the accounts for the year to 31 March 2018.

2. The company's depreciation policy is as follows:?

Buildings ....................4% p.a. straight line.

Equipment ................40% p.a. reducing balance.

Vehicles.................... 25% p.a. straight line.?

In all cases, a full year's depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal. None of the assets had been fully depreciated by 31 March 2017.

3. On 1 February 2018, a vehicle used entirely for administrative purposes was sold for ?10,000. The sale proceeds were banked and credited to a disposal account but no other entries were made in relation to this disposal. The vehicle had cost ?44,000 in August 2014. This was the only disposal of a non-current asset made during the year to 31 March 2018.

4. Depreciation is apportioned as follows:

	Distribution costs	Administrative expenses
Buildings	50%	50%
Equipment	25%	75%
Vehicles	70%	30%

5. The company's inventory at 31 March 2018 is valued at ?119,000.

6. Trade receivables include a debt of ?8,000 which is to be written off. The allowance for receivables is to be adjusted to 4% of the receivables which remain after this debt has been written off.

7. Corporation tax for the year to 31 March 2017 was over-estimated by ?6,000. The corporation tax liability for the year to 31 March 2018 is estimated to be ?30,000.

8. One-quarter of wages and salaries were paid to distribution staff and the remaining three-quarters were paid to administrative staff.

9. General administrative expenses include bank overdraft interest of ?9,000.

10. A dividend of 10p per ordinary share was paid on 31 December 2017. No further dividends are proposed for the year to 31 March 2018.

Required:Prepare the following financial statements for Walrus plc in accordance with the requirements of international standards:

(a) A statement of comprehensive income for the year to 31 March 2018.

(b) A statement of financial position as at 31 March 2018.

(c) A statement of changes in equity for the year to 31 March 2018.

Transcribed Image Text:

£000 £000 Land, at cost Buildings, at cost Equipment, at cost Vehicles, at cost Goodwill, at cost 120 250 196 284 300 Accumulated depreciation at 1 April 2017: Buildings Equipment 90 76 Vehicles 132 Inventory at 1 April 2017 Trade receivables and payables Allowance for receivables 107 183 117 Bank balance 57 Corporation tax Ordinary shares of £l each Retained earnings at 1 April 2017 Sales 200 503 1,432 Purchases 488 Directors' fees 150 Wages and salaries General distribution costs 276 101 General administrative expenses Dividend paid Rents received 186 20 30 Disposal of vehicle 10 2,661 2,661