Ballistic Limited is a listed company on the Namibia Stock Exchange with a year-end of 31 July. The following balances were extracted from its ledgers.

Trial Balance as at 31 July 2021

Share Capital

Share premium

Revaluation Surplus at 1 August 2020

Land and Building (Cost)

Building-Accumulated depreciation at 1 August 2020 Plant and equipment (Cost)

P&M Accumulated depreciation at 1 August 2020 Discount settlement received

Discount settlement granted

Trade and other receivables

Trade and other payables

5% Borrowing: AB bank

Cash and Cash equivalents

Retained earnings at 1 August 2020

Sales

Purchases

Distribution costs

Administrative expenses

Inventories at 1 August 2020

Dividend paid

Adjustments:

Dr Cr N$000 N$000

130,000 32,000

50 20,280

2,213

50,000 25,000 10,000

22,500

18,000 30

8,725 20,000

12,940 110,926

67,231

8,326

7,741

7,280

3,000

278,121 278,121

1) The inventories at the close of business on 31 July 2021 cost N$9,420,000.

2) Depreciation is to be provided for the year to 31 July 2021 as follows:

i. Buildings 4% per annum on straight-line basis, all to be allocated to administrative expenses.

ii. Plant and equipment 20% per annum reducing balance basis to be apportioned as follows:

Cost of sales: 70%

Distribution costs: 20%

Administrative expenses: 10%

3) Land, which is non-depreciable is included in the trial balance at a value of NS40 000 000 and it is to be revalued to N$54 000 000. This revaluation is to be included in the financial statements for the year ended 31 July 2021.

4) It has been decided to write off a debt of N$540 000 which will be charged to administrative expenses.

5) Included within distribution costs is N$2 160 000 relating to an advertising campaign that will run from 1 January 2021 to 31 December 2021.

6) The loan interest has not yet been accounted for.

7) The tax charge for the year has been calculated as N$2 700 000.

REQUIRED:

Marks

2.1

Statement of Profit or Loss and other comprehensive income for the year ended 31 July 2021 to comply with the requirement Companies Act 71 of 2008 and International Financial Reporting Standards (IFRS) using the function of expenses method. Comparative information is not required

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2.2

Prepare the notes to the financial statement for the year ending 31 July 2021 to comply with minimum requirements of companies Act 2008 and International Financial Reporting Standards with respect to:

i. Statement of compliance

ii. Statement of significant accounting policies

iii. Revenue

iv. Property, Plant and Equipment

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TOTAL Question 4

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Ballistic Limited is a listed company on the Namibia Stock Exchange with a year-end of 31 July. The following balances were extracted from it's ledgers. Trial Balance as at 31 July 2021 Ballistic Limited is a listed company on the Namibia Stock Exchange with a year-end of 31 July. The following balances were extracted from it's ledgers. Trial Balance as at 31 July 2021