Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GHS DOO 760.000 1.NO The following trial balance relates to Golden Lid September 2016 GHS DOO Sales) Material purchases) 120.000 Production labour (b) 248.000 Factory

image text in transcribed
GHS DOO 760.000 1.NO The following trial balance relates to Golden Lid September 2016 GHS DOO Sales) Material purchases) 120.000 Production labour (b) 248.000 Factory overheads 160.000 Distribution 28.400 Administrative expenses) 92.800 Finance costs 700 Investment income Leased property at cost th) 100.000 Plant and equipments) Accumulated ameti depreciation at 1/10/2017 -wed property -plant and equipment Equity investme) 16.000 Inventory 1/10/17 Trade receivables 67.100 Trade payables Bank Suated capital (GHSO2) Income surplus (1/10/2017) Deferred tax 1.043.400 4 100.000 10000 The following notes are relevant (a) Sales include goeds sold and dispatched in September 2018 a 30-day right of retas basis. Their selling price was GHS48m and they were sold at a grow profit margin of 29%. In the past, Golden Lid's customers have always met their obligations under this type of agreement Nos current asset In the course of the year. Golden Lad produced an item of equipment for its own me. The direct materials for the equipment cost GHSom and the labour cost Gm. Manufacturing overheads are 50 of direct labour cost and Golden Lad determines the final selling price for goods by adding a mark-up on total cost of %. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on July 2018 All plant and equipment is deprecated at 23% per amum using the straight line method with time apportiment in the year of acquisition The management of Golden revalued the land property in line with recent increases in market values. On October 2017 an independent architect valued the leased property at GHm, which the management agreed to. The based property had an original weful life of 20 years which has not changed Revaluation 1 surplus is realised over the life of the wood property. The evaluation surplus will give rise to a deferred tax liability (se Noten All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current set foethe year ended 30 September 2018 (c) In July 2018, the share price of Golden Laded GHS2.40 per share. On this date. Golden Lid poidan interim dividend included in administrative expenses) that was computed to give a dividend yield of 4% (1) Closing inventory on 30 September 2018 was valued at GHS109.6m. The equity investments had a fair value of GHS14.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments. A provision for income tax for the year ended 30 September 2018 or GHS4.fen is required. At 30 September 2018, the tax huse of Golden Lid's wet assets was GHS 30mless than their carrying amounts This excludes the effects of the evaluation of the leased property. The income tax rate of Golden Ladis 30% Required: Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in September 2018 GHS DOO 760.000 1.NO The following trial balance relates to Golden Lid September 2016 GHS DOO Sales) Material purchases) 120.000 Production labour (b) 248.000 Factory overheads 160.000 Distribution 28.400 Administrative expenses) 92.800 Finance costs 700 Investment income Leased property at cost th) 100.000 Plant and equipments) Accumulated ameti depreciation at 1/10/2017 -wed property -plant and equipment Equity investme) 16.000 Inventory 1/10/17 Trade receivables 67.100 Trade payables Bank Suated capital (GHSO2) Income surplus (1/10/2017) Deferred tax 1.043.400 4 100.000 10000 The following notes are relevant (a) Sales include goeds sold and dispatched in September 2018 a 30-day right of retas basis. Their selling price was GHS48m and they were sold at a grow profit margin of 29%. In the past, Golden Lid's customers have always met their obligations under this type of agreement Nos current asset In the course of the year. Golden Lad produced an item of equipment for its own me. The direct materials for the equipment cost GHSom and the labour cost Gm. Manufacturing overheads are 50 of direct labour cost and Golden Lad determines the final selling price for goods by adding a mark-up on total cost of %. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on July 2018 All plant and equipment is deprecated at 23% per amum using the straight line method with time apportiment in the year of acquisition The management of Golden revalued the land property in line with recent increases in market values. On October 2017 an independent architect valued the leased property at GHm, which the management agreed to. The based property had an original weful life of 20 years which has not changed Revaluation 1 surplus is realised over the life of the wood property. The evaluation surplus will give rise to a deferred tax liability (se Noten All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current set foethe year ended 30 September 2018 (c) In July 2018, the share price of Golden Laded GHS2.40 per share. On this date. Golden Lid poidan interim dividend included in administrative expenses) that was computed to give a dividend yield of 4% (1) Closing inventory on 30 September 2018 was valued at GHS109.6m. The equity investments had a fair value of GHS14.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments. A provision for income tax for the year ended 30 September 2018 or GHS4.fen is required. At 30 September 2018, the tax huse of Golden Lid's wet assets was GHS 30mless than their carrying amounts This excludes the effects of the evaluation of the leased property. The income tax rate of Golden Ladis 30% Required: Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in September 2018

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

Step: 3

blur-text-image

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

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

8th International Edition

1260570517, 978-1260570519

More Books

Students also viewed these Accounting questions

Question

List the benefits of depositary receipts to the investors.

Answered: 1 week ago

Question

consider how qualitative data can add value to your research;

Answered: 1 week ago

Question

consider the use of electronically obtained qualitative data;

Answered: 1 week ago