Proforma for Sydney Ltd Trial balance Sydney Ltd Trial Balance as at 30 June 2021 DR CR $000 $000 Sales of goods Gain from trading securities Cost of sales Office Rent Advertising and distribution expense Sales commission expense (selling) Utility bills Wages and salaries (selling) Wages and salaries (administrative) Bad debts expense Depreciation expense buildings Depreciation expense Furniture Interest expense Bank charges Income tax expense Cash on hand Cash on deposit, at call Trade debtors Allowance for doubtful debts Other debtors Inventory Trading securities Land Buildings Accumulated depreciation buildings Furniture Accumulated depreciation Furniture Patents Amortisation of patents Bank loans Other loans Trade creditors Provision for employee benefits Warranty provision Current tax payable Deferred tax liability Share Capital Dividends paid Retained earnings, transfer to general reserve General reserve Land revaluation surplus Retained earnings, 30 June 2020 Total The following additional information was noted during the preparation of financial statements for the year ended 30 June 2021 Inventory was measured at the lower of cost and net realisable value as per AASB102 Depreciation and accumulated depreciation for buildings and furniture need to be calculated Trading securities are equity investments that are held for the purpose of selling and short term profit taking $20 000 of bank loans are repayable within 1 year The remaining amount is payable in full at the end of 2030 The loans are secured over the land $150 000 of other loans are repayable within 1 year The remaining amount is payable in full at the end of 2024 The provision for employee benefits includes $20 000 payable within 1 year The warranty provision is in respect of a 12 month warranty given on certain goods sold Buildings and furniture were measured at cost The benefits were expected to be received evenly over the useful life of the asset The residual values are negligible Building was acquired on 1 July 2019 for $500,000 (cost) and estimated useful life is 20 years Furniture was acquired on 1 January 2020 for $200,000 (cost) and estimated useful life is 10 years Land was revalued upward by $5 000 to $125 000 (assume zero income tax for this transaction) There had been no previously recognised reserve for revaluation surplus The valuation was conducted by the registered valuer, The Valuable Pty Ltd Sydney Ltd transferred $10,000 out of retained earnings into general reserve Required For the year ending 30 June 2021 (NOTE comparative financial statements are not required), Using the pro forma table supplied, prepare a preliminary trial balance for Sydney Ltd (5 Marks) Prepare a statement of comprehensive income for Sydney Ltd in accordance with the requirements of AASB 101 Sydney Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement ( 6 marks) Prepare a statement of changes in equity for Sydney Ltd in accordance with the requirements of AASB 101 (6 marks) Prepare a statement of financial position for Sydney Ltd in accordance with AASB 101 Use the current non current presentation format (8 marks) Prepare appropriate notes to the accounts (You are not required to prepare a note related to income taxes Include the following note as note 1 You may optionally add accounting policies to this note) (10 marks) 1 Summary of significant accounting policies Basis of accounting The financial report is a general purpose financial report which has been prepared on the historical cost basis, except where stated otherwise Statement of Compliance The financial statements have been prepared in accordance with the requirements of the Corporations Act, Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRSs) and AASB Interpretations Compliance with AIFRSs ensures the financial statements and notes comply with International Financial Reporting Standards

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Proforma for Sydney Ltd Trial balance Sydney Ltd - Trial Balance as at 30 June 2021 DR CR $000 $000 Sales of goods Gain from

Proforma for Sydney Ltd Trial balance

Sydney Ltd - Trial Balance as at 30 June 2021	DR	CR
	$000	$000
Sales of goods
Gain from trading securities
Cost of sales*
Office Rent
Advertising and distribution expense
Sales commission expense - (selling)
Utility bills
Wages and salaries (selling)
Wages and salaries- (administrative)
Bad debts expense
Depreciation expense - buildings
Depreciation expense - Furniture
Interest expense
Bank charges
Income tax expense
Cash on hand
Cash on deposit, at call
Trade debtors
Allowance for doubtful debts
Other debtors
Inventory
Trading securities
Land
Buildings
Accumulated depreciation buildings
Furniture
Accumulated depreciation Furniture
Patents
Amortisation of patents
Bank loans
Other loans
Trade creditors
Provision for employee benefits
Warranty provision
Current tax payable
Deferred tax liability
Share Capital
Dividends paid
Retained earnings, transfer to general reserve
General reserve
Land revaluation surplus
Retained earnings, 30 June 2020
Total

The following additional information was noted during the preparation of financial statements for the year ended 30 June 2021:

Inventory was measured at the lower of cost and net realisable value as per AASB102.
*Depreciation and accumulated depreciation for buildings and furniture need to be calculated.
Trading securities are equity investments that are held for the purpose of selling and short-term profit taking.
$20 000 of bank loans are repayable within 1 year. The remaining amount is payable in full at the end of 2030. The loans are secured over the land.
$150 000 of other loans are repayable within 1 year. The remaining amount is payable in full at the end of 2024.
The provision for employee benefits includes $20 000 payable within 1 year.
The warranty provision is in respect of a 12-month warranty given on certain goods sold.
Buildings and furniture were measured at cost. The benefits were expected to be received evenly over the useful life of the asset. The residual values are negligible. Building was acquired on 1 July 2019 for $500,000 (cost) and estimated useful life is 20 years. Furniture was acquired on 1 January 2020 for $200,000 (cost) and estimated useful life is 10 years.
Land was revalued upward by $5 000 to $125 000 (assume zero income tax for this transaction). There had been no previously recognised reserve for revaluation surplus. The valuation was conducted by the registered valuer, The Valuable Pty Ltd.
Sydney Ltd transferred $10,000 out of retained earnings into general reserve.

Required:

For the year ending 30 June 2021 (NOTE: comparative financial statements are not required),

Using the pro forma table supplied, prepare a preliminary trial balance for Sydney Ltd; (5 Marks)
Prepare a statement of comprehensive income for Sydney Ltd in accordance with the requirements of AASB 101. Sydney Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement; (6 marks)
Prepare a statement of changes in equity for Sydney Ltd in accordance with the requirements of AASB 101; (6 marks)
Prepare a statement of financial position for Sydney Ltd in accordance with AASB 101. Use the current/non-current presentation format; (8 marks)
Prepare appropriate notes to the accounts. (You are not required to prepare a note related to income taxes. Include the following note as note 1. You may optionally add accounting policies to this note) (10 marks)

"1. Summary of significant accounting policies

Basis of accounting

The financial report is a general purpose financial report which has been prepared on the historical cost basis, except where stated otherwise.

Statement of Compliance

The financial statements have been prepared in accordance with the requirements of the Corporations Act, Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRSs) and AASB Interpretations. Compliance with AIFRSs ensures the financial statements and notes comply with International Financial Reporting Standards."