Question
Robinson Company Ltd has extracted the following Trial Balance from its books on December 31, 2019: Details $ $ Buildings at costs 15,000,000 Furniture, etc.
Robinson Company Ltd has extracted the following Trial Balance from its books on December 31, 2019:
Details | $ | $ |
Buildings at costs | 15,000,000 |
|
Furniture, etc. at cost | 4,000,000 |
|
Depreciation buildings, January 1, 2019 |
| 6,000,000 |
Depreciation, furniture, etc. January 1, 2019 |
| 1,500,000 |
Purchases | 8,000,000 |
|
Administrative expenses | 1.600,000 |
|
Distribution expenses | 1,800,000 |
|
Cash at bank | 500,000 |
|
Inventory, January 1, 2019 | 750,000 |
|
Taxation charge for the year | 800,000 |
|
Accounts receivable | 2,200,000 |
|
Turnover |
| 16,000,000 |
$1 ordinary shares |
| 1,800,000 |
Share premium |
| 1,700,000 |
Retained earnings, January 1, 2019 |
| 3,000,000 |
Bank loan |
| 2,000,000 |
Trade payables |
| 1,750,000 |
Other payables | ------------- | 900,000 |
| 34,650,000 | 34,650,000 |
Additional information:
- Inventory on December 31, 2019 was valued at $600,000.
- Included within administrative cost is an amount of $400,000 relating to legal fees incurred by the company.
- 200,000 ordinary shares were issued during the year at $2.50 each.
- Depreciation was charged to administrative expenses as follows: Buildings 4% per annum straight line; furniture, etc. 20% reducing balance
Required:
Prepare the following statements for Robinson Company Ltd for the year ended December 31, 2019 in accordance with IAS1. (Show all workings)
- The statement of profit or loss for the financial year.
Statement of Profit and Loss for year ended December 31, 2009
Details | $ |
Revenue | 3,000,000 |
Cost of Sale | 8,000,000 |
Gross Profit |
|
Other Income |
|
|
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|
|
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