Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Non-Current Assets The 15-year leasehold property was acquired on 01 April 2020 at a cost of 30 million. The accounting policy is to revalue

image text in transcribed
image text in transcribed
image text in transcribed
1. Non-Current Assets The 15-year leasehold property was acquired on 01 April 2020 at a cost of 30 million. The accounting policy is to revalue the property at fair value at each year end. The valuation in the trial balance of 25.2 million as at 31 March 2021 led to an impairment charge of 2.8 million which was reported in the statement of profit or loss and other comprehensive income in the year ended 31 March 2021. At 31 March 2022 the property was valued at 24.9 million. Owned plant is depreciated at 25% per annum using the reducing balance method. The right-of-use plant was acquired on 01 April 2020. The rentals are 6 million per annum for four years payable in arrears on 31 March each year. The interest rate implicit in the lease is 8% per annum. Right-of-use plant is depreciated over the issue period. No depreciation has yet been charged on any non-current assets for the year ended 31 March 2022. All depreciation is charged to cost of sales. 2. On 1 October 2021, Jufyilee entered into a contract to construct a bridge over a river. The performance obligation will be satisfied over time. The agreed price of the bridge is 50 million, and construction was expected to be completed on 30 September 2023. The 14.3 million in the trial balance is: The sales value of the work done at 31 March 2022 has been agreed at 22 million and the estimated cost to complete (excluding plant depreciation) is 10 million. The specialist plant will have no residual value at the end of the contract and should be depreciated on a monthly basis. Jubilee recognises progress towards satisfaction of performance obligation on the outputs basis as determined by the agreed work to date compared to the total contract price. 3. Jubilee's revenue includes 8 million for goods it sold acting as an agent for Platinum, Jubilee earned a commission of 20% on these sales and remitted the difference of 6.4 million (included in cost of sales) to Platinum. The following trial balance relates to Jubilee Pls at 31March ?n2?. 4. The directors have estimated the provision for income tax for the year ended 31 March 2022 at 4.5 million. The required deferred tax provision at 31 March 2022 is 5.6 million. All adjustments to deferred tax should be taken to the statement of profit or loss. The balance of current tax in the trial balance represents the under/over provision of the income tax liability for the year ended 31 March 2021. Required: 1. Prepare the statement of profit or loss and other comprehensive income for the year ended 31 March 2022 2. Prepare the statement of financial position as at 31 March 2022 (25 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

What is a trial balance? To what does the term "balance" refer?

Answered: 1 week ago