Question 2 (35 marks) Winnie Limited is a retailer in Hong Kong. The following is its trial balance as at 31 December 20XO: Dr $000 Cr S000 1,824 1,000 12 440 2,000 Sales Purchases Administrative costs Delivery expenses Plant and machinery - cost Plant and machinery - Accumulated depreciation Land Revaluation reserve-land Purchases returns Sales returns and allowance Transportation in/ Carriage inwards Warehouse wages Salesmen's salaries Administrative wages and salaries Motor vehicles expenses Directors' remuneration Ordinary share capital (2,640,000 shares issued and fully paid) General reserve Retained earnings as at 1 January 20X0 Inventory as at 1 January 20X0 2,640 32 110 Rental income Trade receivables Cash at bank Trade payables 652 124 5.000 (ii) The following information is relevant: Depreciate plant and machinery at 20% on a straight-line basis. No residual value for the plant and machinery. Inventory at 31 December 20X0 is $180,000. Auditors' remuneration of $4,000 should be provided for. (iv) Profits tax for the year will be $12,000, payable in October 20X1. (v) It is estimated that 60% of the plant and machinery is used in connection with distribution, with the remainder for administration. The motor vehicle expense should be allocated to distribution. (vi) Land is revalued to be $3,000,000 at 31 Dec. 20X0. Land is not subject to depreciation.. Required: Prepare a statement of profit or loss and other comprehensive income for the year ended 31 December 20X0 and a statement of financial position as at 31 December 20X0 according to HKAS 1. You should classify expenses by function. Show your workings clearly Question 2 (35 marks) Winnie Limited is a retailer in Hong Kong. The following is its trial balance as at 31 December 20X0: Dr S000 Cr $000 1,824 1,000 12 440 2,000 Sales Purchases Administrative costs Delivery expenses Plant and machinery - cost Plant and machinery - Accumulated depreciation Land Revaluation reserve-land Purchases returns Sales returns and allowance Transportation in Carriage inwards Warehouse wages Salesmen's salaries Administrative wages and salaries Motor vehicles expenses Directors' remuneration Ordinary share capital (2,640,000 shares issued and fully paid) General reserve Retained earnings as at 1 January 20X0 Inventory as at 1 January 20X0 2,640 110 3/5 Rental income Trade receivables Cash at bank Trade payables 652 124 132 5.000 5.000 The following information is relevant: (i) Depreciate plant and machinery at 20% on a straight-line basis. No residual value for the plant and machinery. (ii) Inventory at 31 December 20X0 is $180,000. (ii) Auditors' remuneration of $4,000 should be provided for. (iv) Profits tax for the year will be $12,000, payable in October 20X1. It is estimated that 60% of the plant and machinery is used in connection with distribution, with the remainder for administration. The motor vehicle expense should be allocated to distribution. (vi) Land is revalued to be $3,000,000 at 31 Dec. 20X0. Land is not subject to depreciation Required: Prepare a statement of profit or loss and other comprehensive income for the year ended 31 December 20X0 and a statement of financial position as at 31 December 20X0 according to HKAS 1. You should classify expenses by function. Show your workings clearly
