Prepare in accordance with IFRS and IAS - ACCA

The trial balance of Pink Limited at June 30, 2020 is given below. $000 5000 410 68 244 24 20 8 300 120 72 Gross Profit Distribution expenses Administration expenses Debenture interest Equity dividends paid Investment income Land and buildings Office equipment Delivery vehicles Provision for depreciation: Land and buildings Office equipment Delivery vehicles Trade receivables Trade payables Lease Rental (see note (ii) below) Inventory at June 30, 2020 Bank balance Retained earnings July 1, 2019 Equity Share Capital Share Premium Deferred Tax General reserves 30 48 32 222 127 30 303 50 18 400 40 10 10 100 8% Investments (long term) 10% Debentures 2026 320 1503 1503 Additional Information: 0 At June 30, 2020 some of the inventory which had cost of $15,000 was found in damaged condition and has an expected resale value of only $5,000. No adjustment has been made in the accounts so far. (1) Loan interest is payable quarterly in arrears, on 1 January, 1 April, 1 July and 1 October. No accrual has been made for interest for the final quarter of the year. (ii) Machinery was acquired an. Jease on January 1, 2020. The lease required four annual payments of $30,000 (per annum) with the first payment on January 1, 2020. The machine was expected to have a useful life of four (4) years and would be scrapped at the end of this period. The interest rate implicit in the lease is 10% per annum. Depreciation on the machinery is to be charged on straight line basis and is to be allocated 50% to each administration and distribution expenses. Other than payment of the first instalment, no other entry relating to the acquisition of equipment has been made in the accounts. (Ignore any tax effect of the lease) (iv) Current tax for the year is $8,188. A pending tax case relating to prior years has recently been decided against the company, resulting in $4,000 additional tax payable by Pink before December 31, 2020. No provision for this amount has been made in the accounts. (V) Deferred tax provision for this year is to be provided on timing differences related to all owned tangible non-current assets only. The tax base for these non-current assets @ June 30, 2020 is $405,000. Assume income tax rate 25%. (vi) The directors propose a final dividend of 10 cents per equity share. Required: a. b. c. Statement of profit or loss (income statement) for the year ended June 30, 2020 Statement of changes in equity for the year ended June 30, 2020 Statement of financial position (balance sheet) as at June 30, 2020. The trial balance of Pink Limited at June 30, 2020 is given below. $000 5000 410 68 244 24 20 8 300 120 72 Gross Profit Distribution expenses Administration expenses Debenture interest Equity dividends paid Investment income Land and buildings Office equipment Delivery vehicles Provision for depreciation: Land and buildings Office equipment Delivery vehicles Trade receivables Trade payables Lease Rental (see note (ii) below) Inventory at June 30, 2020 Bank balance Retained earnings July 1, 2019 Equity Share Capital Share Premium Deferred Tax General reserves 30 48 32 222 127 30 303 50 18 400 40 10 10 100 8% Investments (long term) 10% Debentures 2026 320 1503 1503 Additional Information: 0 At June 30, 2020 some of the inventory which had cost of $15,000 was found in damaged condition and has an expected resale value of only $5,000. No adjustment has been made in the accounts so far. (1) Loan interest is payable quarterly in arrears, on 1 January, 1 April, 1 July and 1 October. No accrual has been made for interest for the final quarter of the year. (ii) Machinery was acquired an. Jease on January 1, 2020. The lease required four annual payments of $30,000 (per annum) with the first payment on January 1, 2020. The machine was expected to have a useful life of four (4) years and would be scrapped at the end of this period. The interest rate implicit in the lease is 10% per annum. Depreciation on the machinery is to be charged on straight line basis and is to be allocated 50% to each administration and distribution expenses. Other than payment of the first instalment, no other entry relating to the acquisition of equipment has been made in the accounts. (Ignore any tax effect of the lease) (iv) Current tax for the year is $8,188. A pending tax case relating to prior years has recently been decided against the company, resulting in $4,000 additional tax payable by Pink before December 31, 2020. No provision for this amount has been made in the accounts. (V) Deferred tax provision for this year is to be provided on timing differences related to all owned tangible non-current assets only. The tax base for these non-current assets @ June 30, 2020 is $405,000. Assume income tax rate 25%. (vi) The directors propose a final dividend of 10 cents per equity share. Required: a. b. c. Statement of profit or loss (income statement) for the year ended June 30, 2020 Statement of changes in equity for the year ended June 30, 2020 Statement of financial position (balance sheet) as at June 30, 2020