Question 1: Jagdpanther Ltd has provided the following trial balance as at 31.12.15 Cr(E) Dr (E) 290,000 100,000 20,000 30,000 15,000 10,000 Land -cost Plant and Machinery -cost Plant and Machinery-accumulated depreciation Trade debtors Inventory Cash and Bank Trade Creditors Allowance for trade debtors (01.01.2015) Net Sales Net Purchases Inventory (01.01.2015) Salaries Administrative expenses Selling expenses Retained earnings (01.01.2015) Share Capital (100,000 shares @ E1.00 each) (01.01.2015) Share Premium (01.01.2015) 15,000 3,000 500,000 150,000 60,000 22,000 10,000 10,000 30,000 100.000 29,000 697,000 697,000 The following information is also given for this company. 1) Depreciation on Plant and Machinery is to be charged @ 20% straight line. The depreciation expense is to be treated as Administrative expense. 2) Allowance for doubtful debts is to be set at 11% of the trade debtors at the current year end. The change in the provision is to be treated as part of Selling expenses. 3) At the year end, the company applied the Fair Value model to the Land in its Statement of Financial Position. The Fair Value of the land at the year end was 340,000. This revaluation has not yet been incorporated into the trial balance figures. FAST School of Management, LahorePage 1 of 4) The closing inventory is 15,000 5) During the year, the company issued a 1 for 10 bonus issue. They are to be issued by capitalizing the share premium. These are not yet accounted for in the trial balance given above. Requirement 1. Prepare the Statement of Profit & Loss for the year ending 31.12.15 (L05) (BT Level: Apply) (10 Marks) 2. Prepare the Statement of Financial Position as at 31.12.15 (L05) (BT Level: Apply) (15 Marks)