Question 3 : Company Accounts

2. The following balances have been extracted from the books of Jobling Ltd as at 30 September 2019.

	$	$
Trade creditors		18,900
Sales revenue		240,000
Land at cost	57,600
Building at cost	114,000
Furniture and fittings at cost	66,000
Bank		18,000
Provision for depreciation:
Buildings		18,000
Furniture and fittings		30,000
Discount received		5,292
Retained earnings at 1 Oct 2018		10,800
Provision for bad debts		2,448
Goodwill	49,200
Cash	696
Inventory at 1 Oct 2018	42,744
Commissions receivable		1,800
Rent	6,370
Wages and salaries	24,000
Insurance	5,690
Return inwards	1,116
Other operating expenses	1,308
Trade debtors	37,920
Purchases	131,568
Debenture interest	1,200
Bad debt	2,028
5% Debentures		48,000
6% Preference shares @ $1		60,000
Ordinary shares @ $1		60,000
General reserves		33,000
Dividends paid:
Preference: half year to 31 March 2019	1,800
Ordinary	3,000
	546,240	546,240

Additional information:

1. Inventory on hand at 30 September 2019 was valued at $46,638

2. Insurance paid in advance $300, and wages of $840 is owing

3. Depreciation is to be provided at 10% on cost of buildings, and 20% on the written down value of furniture and fittings

4. Provision for bad debts is to be adjusted to 10% of trade debtors

5. The directors will honor the final preference dividend

6. A transfer of $10,000 from retained earnings to general reserve is to be made

7. The tax charge for the year is estimated at $20,000

8. Goodwill impairment was estimated to be 10%

1. The following appropriation of the expenses must be made:

Admin Selling & Dist

1. Rent 80% 20%
2. Wages & Salaries 60% 40%
3. Insurance 50% 50%

Required:

Prepare the final accounts for Jobling Ltd in accordance with IAS 1

These should include:

1. A Statement of Profit or Loss
2. A Statement of Changes in Equity
3. A Statement of Financial position