The trial balance of Lax Ltd at $30$ June $2024$ was as shown below.

LAX LTD

Trial Balance

as at $30$ June $2024$

 Debit Credit

Share capital $($ordinary shares issued at $$2,$ fully paid$)$  $$200000$

General surplus $25000$

Retained earnings $73400$

Revaluation surplus $85000$

Mortgage loan $($secured over land and buildings$)250000$

Bank overdraft $($at call$)70900$

$7\%$ debentures $80000$

Interest payable $2800$

Accounts payable $69500$

Dividend payable $10000$

Employee benefits payable $34200$

GST payable $18400$

Allowance for doubtful debts $12800$

Accumulated depreciation $–$ plant and equipment $42500$

Accumulated impairment losses $–$ goodwill $10000$

Cash at bank $$500$ 

Accounts receivable $67800$ 

Inventory $87700$ 

Prepaid insurance $7000$ 

Plant and equipment $222500$ 

Land $220000$ 

Buildings $380000$ 

Goodwill $50000$ 

Government bonds $($long$-$term$)35000$ 

Shares in Carncotton Ltd $20000$ 

Sales revenue $825000$

Cost of sales $450000$ 

General expenses $265000$ 

Loss on sale of plant $10000$ 

Interest received $2500$

Dividends received $3500$

 $$1815500$ $$1815500$





Additional information

$1.$  General expenses for the year include the following items.



Depreciation $-$ plant & equipment $$17,200$

Depreciation $-$ buildings $15,000$

Employee benefits $11,600$

Bad debts $10,000$

Interest expense $28,700$

Inventory losses $6,200$

Discount allowed $4,200$

Council rates $16,120$

Superannuation contributions $7,000$

$2.$  The company tax rate is $30\%,$ to be applied to profit before tax.

$3.$  The opening balance of the allowance for doubtful debts was $$15250.$

$4.$  All assets are carried at cost$,$ except for land and buildings, which are carried at fair value.

$5.$  During the year, $50000$ shares were issued at an issue price of $$2$ each, payable in full on application.

$6.$  On $30$ June $2024,$ the directors revalued land and buildings based on fair values. The carrying amounts of land and buildings before the revaluation were $$195000$ and $$350000$ respectively.

$7.$  The mortgage loan is repayable in annual instalments of $$50000$ starting on $1$ March.

$8.$  The debentures are to be redeemed on $31$ March $2024.$ There is no plan to refinance these debentures in the future.

$9.$  The employee benefits payable consist of the following.

 Annual leave $$18,400$

 Long$-$service leave $15,800$

$10.$  No employee is eligible for long$-$service leave until $2024.$

$11.$  Goodwill is not considered to be impaired.

$12.$  During the year, Lax Ltd sold an item of plant for $$38000.$ The carrying amount of the plant at the date of sale was $$48000.$

$13.$  During the year, an interim dividend of $$20000$ was paid, and a final dividend of $$10000$ was declared. $$25000$ was also transferred to the general reserve.

Required:

Part $($a$)-19$ ticks $($@$2/3$ mark each $=12\mathrm{.}67$ marks$)$

Prepare a Statement of Profit or Loss and Other Comprehensive Income for Lax Ltd for the year ended $30$ June $2024,$ according to the requirements of IAS $1/$AASB $101.$