Good day

(SOURCE HERIOT WATT PAST PAPERS)

REFER TO QUESTION BELOW

Can I get some assistance in answering question1 part (a) below please?

Question 1 The table betow shows the Trial Balance for Kentigem Ltd for the year ended 31 March 2018. Operating Costs Interest and other finance charges NonCurrent Assets Current Liabilities . Ordinary Share Capital (1 Shares) Share premium Revaluation reserve Non-Current Liabilities Retained earnings Ordinary Dividends paid The following notes are also relevant: (D Kentigem's nance director estimates that the tax charge for the current year is likely to be around 300,000. Included in current liabilities is an amount of 20,000 which represents an overprovision for tax in the previous year. (i) Kentigern normally conducts its business in sterling. However, in January 2018 it bought inventory on credit from a supplier for $72,000. The exchange rate at the date of the purchase was $1.20; 1 and this was the rate at which the transaction was included in the accounts. The full amount is still outstanding. Assume the exchange rate at the 31 March 2017 was $1 .00:1. (i) On 1 April 2017, Kentigem entered into an agreement to lease some new machinery over a period of 3 years. The useful life of the machinery is expected to be 3 years, with no residual vaiue at thejend of that period. The cash price of the machinery would have bee 380,0@. The iease agreement specifies that Kentigern will make four annua tease payments, of 100,000 each, on 31 March each year. The rst lease payment has been recorded as an operating expense in the accounts but no other entries have been made. Continued/. . . Page 2 of 5 C3QCA (iv) Non-Current Assets includes Land shown at a valuation of 2mn as at 31 March 2017. The value of the land at 31 March 2018 is 2.2mn and the directors would like this value reflected in the financial statements. Required: Prepare the following statements for Kentigern for the year ended 31 March 2018: (a) Total Comprehensive income ' (b) Changes in Equity ' (0) Financial Position ~ You are not required to prepare notes to the nancial statements but you should show all your workings