(a) Closing inventory has been counted and is valued at $75,000.

(b) The items listed below should be apportioned as indicated.

Cost of salesdistribution costadvertisement expense

%%%

Discount received -------100

Energy expense402040

Wages 402535

Directors remuneration----------100

(c) An invoice of $15,000 for energy expenses for October 20X7 has not been received.

(d) Loan note interest has not been paid for the year.

(e) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables.

Any expenses connected with receivables should be charged to administrative expenses.

(f) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge

is to be allocated to cost of sales.

(g) Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of

sales, 30% to distribution costs and 40% to administrative expenses.

(h) Income tax has been calculated as $45,000 for the year.

Required

Prepare the following financial statements for Malright in accordance with IAS 1 Presentation of

financial statements:

(a) The statement of profit or loss for the year ended 31 October 20X7

(b) The statement of changes in equity for the year ended 31 October 20X7

(c) The statement of financial position as at 31 October 20X7