Question 1: this question MUST be answered by ALL students Dargent Limited is a company with a number of outlets around the country. The company prepares its financial statements to 31 March each year. The Trial Balance of the company for the year ended 31 March 2019 is set out below: 000's 000's 400 350 1.100 1,808 1,060 240 120 390 1,250 Share Capital 400,000 Ordinary Shares at 1 each Share Premium Retained Earnings at April 1, 2018 Sales Purchases Inventory at April 1, 2018 Administration expenses Selling and Distribution expenses Buildings at Cost Buildings: Accumulated Depreciation at April 1, 2018 Office Equipment Office Equipment: Accumulated Depreciation at April 1,2018 Motor Vehicles at Cost Motor Vehicles: Accumulated Depreciation at April 1, 2018 Investment Property at Valuation Trade Receivables Allowance for Doubtful Debts at April 1, 2018 Trade Payables 180 200 72 700 430 280 180 90 200 72 Office Equipment Office Equipment: Accumulated Depreciation at April 1,2018 Motor Vehicles at Cost Motor Vehicles: Accumulated Depreciation at April 1, 2018 Investment Property at Valuation Trade Receivables Allowance for Doubtful Debts at April 1, 2018 Trade Payables Bank 10% Loan Notes due March 31, 2021 Suspense Account 700 430 280 450 750 40 5,020 5,020 Before finalising the financial statements the following additional information has come to light as detailed below. 1. The company had paid a Deposit in January 2019 relating to a Trade Fair which was to be held in September 2019 in the amount of 30,000; the payment has been reflected correctly in the Bank account but the bookkeeper has posted the payment to purchases. 2. Auditor's fees of 12,000 should be accrued for at the year end. 3. Dargent issued 10,000 shares on 1 November 2018. It received 40,000 from the sale of the shares. This transaction was accounted for as follows Dr Cash and Cash Equivalents 40,000 Cr Suspense 40,000 4. The company depreciates its non-current assets as follows: Buildings 2% per annum straight line. Office Equipment 10% per annum straight line Motor Vehicles 20% per annum reducing balance. A full year's depreciation is charged in the year of acquisition and none in the year of disposal. Depreciation of Buildings and Office Equipment is categorised as an Administration expense whilst depreciation of Motor Vehicles is categorised as a Selling and Distribution expense. The Property, Plant and Equipment is carried at cost in the financial statements. 5. The Company carries the Investment Property at Fair Value. The Investment property was independently valued at 775,000 at March 31, 2019 6. A review of the Trade Receivables at the year end revealed the need to write off Bad Debts of 24.000; it was decided that the Allowance for Doubt nu Lyuipment is called at cost in the financial statements. 5. The Company carries the investment Property at Fair Value. The Investment property was independently valued at 775,000 at March 31, 2019. 6. A review of the Trade Receivables at the year end revealed the need to write off Bad Debts of 24,000; it was decided that the Allowance for Doubtful Debts at the year end should amount to 7,000. 7. Ignore taxation in respect of the profit/loss for the year as it has been estimated that no tax will be payable for the current year. 8. Loan Interest should be provided for in full for the year ended 31 March 2019. 9. On 1 March 2019 Dargent held 200 units of finished goods valued at 365.89 each Purchases during March were as follows:. Date 10 March 20 March 25 March Units purchased 300 350 AMARAN KERANA MARIA 250 Cost per unit 360.67 388.92 399.99 Page 3 of 11 Trinity College Dublin, The University of Dublin 2019 X-BU3530-1 Sales during March were as follows: Date 14 March 21 March 28 March 280 2400 80 Dargent uses FIFO (First In First Out) to value closing inventories U paye Page view A Read Dargent uses FIFO (First In First Out) to value closing inventories Required: Prepare the following financial statements for Dargent Limited in accordance with the requirements of international accounting standards: a) A statement of profit of loss and other comprehensive income for the year ended March 31, 2019. 13 marks b) A statement of changes in equity for the year ended March 31, 2019. 3 marks c) A statement of financial position at March 31, 2018. 9 marks Please show all workings clearly. Total: 25 marks