Question 1 The following trial balance relates to Morgan ple, a publicly listed company at 31 December 2020: 000 000 Property, Plant & Equipment 17,500 Deferred tax at 1 January 2011 4,000 Trade receivables and payable 5,225 14,500 Purchases 13,225 Loan interest paid 200 Administrative expenses (V) 8,765 Distribution costs (V) 5,888 Retained earnings at 1 January 2011 1,500 Revenue (iv) 29,900 Income tax 250 Inventory as at 1 January 2011 4.000 Cash and cash equivalents 4.050 Interim dividend paid 800 Ordinary share capital 0.50 (vi) 4,000 10% Loan notes 4,000 Share premium 1,500 59.650 59,650 The following is to be taken into accounts: (1) Included in the Property, Plant and Equipment was building that cost 2,500. On 30 December 2020, it was revalued to 5,500. (in) The balance on the income tax account represents an over-provision of tax for the previous year. (iii) The income tax for the current year is estimated at 1,500. The deferred tax provision is to be increased to 4,300 (iv) On 1 October 2020, Morgan Ple closed down one of its manufacturing division due to the Covid-19 pandemic. The results of the division from 1 January 2020 to the date of closure are 1 included in the above trial balance figures. These results are as follows: {"000 Revenue 4.900 Cost of sales 3.225 Administrative expenses 685 Distribution costs 1.020 Page 2 of 4 The closed-down division satisfies the criteria IFRS 5 (Discontinued Operations). Management have recommended that both revenue and expenses related to the closed down division should be treated under the IFRS 5 rule. The amount revenue, cost of sale and the expenses (v) Closing inventory is valued at 8,000 at cost for the year. Included in this amount is inventory that cost 4,000 but during the inventory count, it was identified that these goods had become damaged and as a result the selling price was reduced. The goods are now believed to have a selling price of 2,250 and will incur rectification costs 250. (vi) On 1st January 2020, the issued share capital of Morgan was 4,000,000 ordinary shares of 0.50 each. The company issued further 1,656,000 shares at full market value on 30 September 2020. (Vit) A final ordinary dividend of 10p per share is declared before the year-end. (a) Required: Prepare for Morgan ple: A statement of profit or less and other comprehensive income as at 30 September 2016. (20 marks) Statement of changes in equity; and statement of financial position as at 31 December 2020. (45 marks) ) Show the caleulation of final basic EPS to be presented in the financial statements for the year ended 31 December 2020. (5 Marks) (b) (c) (Total: 70 marks) Question 1 The following trial balance relates to Morgan ple, a publicly listed company at 31 December 2020: 000 000 Property, Plant & Equipment 17,500 Deferred tax at 1 January 2011 4,000 Trade receivables and payable 5,225 14,500 Purchases 13,225 Loan interest paid 200 Administrative expenses (V) 8,765 Distribution costs (V) 5,888 Retained earnings at 1 January 2011 1,500 Revenue (iv) 29,900 Income tax 250 Inventory as at 1 January 2011 4.000 Cash and cash equivalents 4.050 Interim dividend paid 800 Ordinary share capital 0.50 (vi) 4,000 10% Loan notes 4,000 Share premium 1,500 59.650 59,650 The following is to be taken into accounts: (1) Included in the Property, Plant and Equipment was building that cost 2,500. On 30 December 2020, it was revalued to 5,500. (in) The balance on the income tax account represents an over-provision of tax for the previous year. (iii) The income tax for the current year is estimated at 1,500. The deferred tax provision is to be increased to 4,300 (iv) On 1 October 2020, Morgan Ple closed down one of its manufacturing division due to the Covid-19 pandemic. The results of the division from 1 January 2020 to the date of closure are 1 included in the above trial balance figures. These results are as follows: {"000 Revenue 4.900 Cost of sales 3.225 Administrative expenses 685 Distribution costs 1.020 Page 2 of 4 The closed-down division satisfies the criteria IFRS 5 (Discontinued Operations). Management have recommended that both revenue and expenses related to the closed down division should be treated under the IFRS 5 rule. The amount revenue, cost of sale and the expenses (v) Closing inventory is valued at 8,000 at cost for the year. Included in this amount is inventory that cost 4,000 but during the inventory count, it was identified that these goods had become damaged and as a result the selling price was reduced. The goods are now believed to have a selling price of 2,250 and will incur rectification costs 250. (vi) On 1st January 2020, the issued share capital of Morgan was 4,000,000 ordinary shares of 0.50 each. The company issued further 1,656,000 shares at full market value on 30 September 2020. (Vit) A final ordinary dividend of 10p per share is declared before the year-end. (a) Required: Prepare for Morgan ple: A statement of profit or less and other comprehensive income as at 30 September 2016. (20 marks) Statement of changes in equity; and statement of financial position as at 31 December 2020. (45 marks) ) Show the caleulation of final basic EPS to be presented in the financial statements for the year ended 31 December 2020. (5 Marks) (b) (c) (Total: 70 marks)