Question 1

Additional information:

• Rent and rates are to be apportioned: Distribution 70% Admin 30%.
• Depreciation is to be provided at 20% on equipment cost and 15% on motor vehicles cost.
• Motor vehicle depreciation, motor expenses, and equipment depreciation expenses to be apportioned: Admin 20%, Distribution 80%.
• Provide for corporation tax : 42,120.
• Transfer 97,500 from the retained profits to the general reserve
• Freehold land is non-depreciable and is to be revalued to 1,000,000 on 31 December 20X0.
• Inventory as at 31 December 20X0 was 64,800.

Required

1. a. Statement of comprehensive income for the year ended 31 December 20X0 for publication in accordance with the requirements of the international accounting standards. The workings for the distribution costs and administrative expenses are to be shown separately.
2. b. Compute the earnings per share for the year ended 31 December 20X0.

Question 2

The following information has been extracted from the trial balance of Medorie Ltd as at 31 December 20X0 as follows: Q2. The following are extracts from the trial balance of Louis Ltd as at 31 October 2009: Additional information: i. Inventory as at 31 October 2009 was f6,400,000. ii. The accrued interest expense at 31 October 2009 has not been accounted for the bank loan that was contracted on 1 November 2008. The first six months' loan interest was paid and included in the accounts above. iii. Provide depreciation at 15% on cost of office equipment and 25% on motor vehicles' cost. iii. Motor vehicle related expenses to be apportioned: Distribution 75% Admin 25\%. iv. Rent and rates are to be apportioned: Distribution 40% Admin 60%. v. Provide for corporation tax : 4,160,000. vi. Freehold land is non-depreciable and is to be revalued to f15,000,000 on 31 October 2009. 2 Session 3 \& 4 Presentation of Financial Statements Questions Required (a) Prepare a statement of comprehensive income for the year ended 31 October 2009 for publication in accordance with the requirements of the international accounting standards. The workings for the distribution costs and administrative expenses are to be shown separately. (b) Compute the earnings per share for the year ended 31 October 2009