Question
Formatone plc produced the following trial balance as at 30 June 20X6: 000 000 Land at cost 2,160.0 Buildings at cost 1,080.0 Plant and equipment
Formatone plc produced the following trial balance as at 30 June20X6: |
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| 000 |
| 000 |
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Land at cost | 2,160.0 |
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Buildings at cost | 1,080.0 |
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Plant and equipment at cost | 1,728.0 |
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Intangible assets | 810.0 |
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Accum. depreciation 30.6.20X5 |
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Buildings |
| 432.0 |
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Plant and equipment |
| 504.0 |
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Interim dividend paid | 108.0 |
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Receivables and payables | 585.0 |
| 532.8 |
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Cash and bank balance | 41.4 |
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Inventory as at 30.6.20X6 | 586.8 |
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Taxation |
| 14.4 |
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Deferred tax |
| 37.8 |
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Distribution cost | 529.2 |
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Administrative expenses | 946.8 |
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Retained earnings b/f |
| 891.0 |
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Sales revenue |
| 9,480.6 |
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Cost of sales | 5,909.4 |
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Ordinary shares of 50p each |
| 2,160.0 |
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Share premium account |
| 432.0 |
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| 14,484.6 |
| 14,484.6 |
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The following information is available: |
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(i) A revaluation of the Land and Buildings on 1 July 20X5 resulted in an increase of 3,240,000 in the Land and 972,000 inthe Buildings. This has not yet been recorded in the books.
(ii) Depreciation:
Plant and Equipment are depreciated at 10% using the reducing balance method. Intangible assets are to be writtendown by 540,000.
Buildings have an estimated life of 30 years from date of the revaluation.
(iii) Taxation
The current tax is estimated at 169,200.
There had been an overprovision in the previous year. Deferred tax is to be increased by27,000.
(iv) Capital
150,000 shares were issued and recorded on 1 July 20X5 for 80p each. A further dividend of 5p pershare has been declared on 30 June 20X6.
Required:
Prepare for the year ended 30 June 20X6 the statement of comprehensive income, statement of changes in equity and statementof financial position.
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