IML$6106$: Week $4-$ HW Question $-$ Wayne Limited

Wayne Ltd$.\text{'}$s accountant has extracted the following trial balance as at $31/03/2022.$ Additional information:

$1.$ Inventory at $31$ March $2022$ was valued at $15,000,000.$

$2.$ The insurance included $50,000$ worth of cover which related to the year to $31$

March $2023.$

$3.$ During the year company sold some equipment for $30,000.$ This related to

equipment that originally cost $50,000$ and had been depreciated by $26,000.$ No

entries have been made at all in the trial balance for this disposal.

$4.$ At the beginning of the year company revalued their land and buildings to

$130,000,000$ of which $51,000,000$ related to land. The remaining life remains

unchanged. This has not been accounted for.

$5.$ Depreciation is charged on office furniture at $32\%$ per annum using reducing balance

method and office building is depreciated at $2\%$ per annum using straight line

method.

$6.$ An irrecoverable debt of $10,000$ is to be written off.

$7.$ The allowance for irrecoverable debts is to be maintained at a level of $1\%$ of

outstanding trade receivables as at $31$ March $2022.$

$8.$ At $31$ March $2022,$ there was an amount owing for salaries of $20,000.$

$9.$ Interest on bank loan has not been recorded yet.

$10.$ Directors believe that there will be no current year$$s tax liability.

Required: Prepare Wayne Ltd$.$s statement of profit or loss and other comprehensive income

and statement of changes in equity for the year to $31$ March $2022$ and the statement of

financial position at that date.