Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their selling price was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Ltds customers have always met their obligations under this type of agreement.

(b) Non-current assets:

In the course of the year, Golden Ltd produced an item of equipment for its own use. The direct materials for the equipment cost GHS6m and the labour cost GHS8m. Manufacturing overheads are 50% of direct labour cost and Golden Ltd determines the final selling price for goods by adding a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018.

All plant and equipment is depreciated at 25% per annum using the straight line method with time apportionment in the year of acquisition.

The management of Golden revalued the leased property in line with recent increases in market values. On 1 October 2017 an independent architect valued the leased property at GHS96m, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation

1

surplus is realised over the life of the leased property. The revaluation surplus will give rise to a deferred tax liability (see Note f).

All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018.

(c) In July 2018, the share price of Golden Ltd stood at GHS2.40 per share. On this date, Golden Ltd paid an interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4%.

(d) Closing inventory on 30 September 2018 was valued at GHS109.6m.

(e) The equity investments had a fair value of GHS34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments.

(f) A provision for income tax for the year ended 30th September 2018 of GHS48.6m is required. At 30th September 2018, the tax base of Golden Ltd's net assets was GHS30m less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ltd is 30%.

Required:

Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in equity for Golden Ltd for the year ended 30th September 2018.

GHS000 760,000 The following trial balance relates to Golden Lad at 30 September 2018 GHS000 Sales (a) Material purchases (b) 125.000 Production labour (b) Factory overheads (b) Distribution costs Administrative expenses) Finance costs Investment income Leased property-at cost (b) 100.000 Plant and equipment a cost (b) 99.000 Accumulated amortisation depreciation at 1/10/2017 leased property - plant and equipment Equity investments Inventory 1/10/17 Trade receivables Trade payables Bank Stated capital (GHSO ) Income surplus (1/10/2017) Deferred tax 1.000.00 The following notes are relevant: (a) Sales include goods sold and dispatched in September 2015 a 30-day night of return basis. Their selling price was GHS4.5m and they were sold a gross profit margin of 25%. In the past. Golden Lid's customers have always met their obligations under this type of agreement (b) Non-currentes In the course of the year. Golden Lad produced an item of equipment for its own use. The direct materials for the equipment cost GHSt and the labour cost GHS Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final selling price for goods by adding a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018 All plant and equipment is depreciated at 25% per assing the straight line method with time apportionment in the year of acquisition The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the leased property GHm, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The relation surplus will give rise to a deferred tax liability (see Note All amortisation and depreciation is charged to cost of sales. No amation or depreciation has yet been charged on any on-current set for the year ended 30 September 2013 (c) In July 2018, the share price of Golden Lad stood at GHS2.40 per share. On this date. Golden Lid paidan interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4% (d) Closing inventory on 30 September 2018 was valued at GHS109. (c) The equity investments had a fair value of GHS34 3m ca 30 September 2018. During the year there were ho purchases or disposals of any of these investments (0) A provision for income tax for the year ended 30 September 2015 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lad's net assets was GHS30 less than their carrying amounts This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ladis 30% 160,000 92.00 700 Material purchases) Production about Factory overheads Distribution costs Administrative expenses (c) Finance costs Investment income Leased property.cos(b) Plant and equipment - at costb) Accumulated amortisation depreciation 1/10/2017 - leased property plant and equipment Equity investments (e) Inventory 1/10/17 Trade receivables Tradeables Bank Stated capital (GHS02) Income surplus (1/102017) Deferred tax 20.000 29,000 36.000 67.100 55,600 4.000 100,000 1.043,400 3,400 1.043,400 The following notes are relevant (a) Sales include goods sold and dispatched in September 2015 on a 30-day night of return basis. Their selling price was GHS4.3m and they were sold to probe margin of 29%. In the past, Golden Lad's customers have always met their obligations under this type of agreement (b) Non-current assets: In the course of the year, Golden Lad produced in of equipment for its own use. The direct materials for the equipment cost GHStim and the labor con GHS Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final scling price for goods by diling a mark-up en total cost of 40%. The direct materials, labour and evadere included in the relevant expense items in the trial balance. The equipment was completed and was put on July 2015 All plant and equipment is depreciated at 29% per annum using the straight line method with time apportiment in the year of equisiti The management of Golden revalued the leased property in line with recent increases in market values. On 1 October 2017 an independent architect and the property at GHSm, which the management agreed to. The leased property had an originalusetul life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The valuation surplus will give rise to a deferred tax liability (see Noten All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 (e) In July 2018, the share price of Golden Ladd GHS2.40 per share. On this date. Golden Lal paidan interim dividend included in administrative expenses that was computed to give a dividend yield of 4% (Closing inventory on 30 September 2018 was valued at GHS109.im (e) The equity investments had a fair value of GH534 ) September 2018. During the year there were no purchases or disposals of any of these investments ( A provision for income tax for the year ended 30 September 2018 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lad's netwas GHS30mless than their carrying amounts This excludes the effects of the evaluation of the leased property. The income tax rate of Golden Lid is Required: Prepare the statement of profit or less and other comprensive income the statement of financial position and the statement of changes in equity for Golden Land for the year ended 30 September 2018 (20 marks) GHS000 760,000 The following trial balance relates to Golden Lad at 30 September 2018 GHS000 Sales (a) Material purchases (b) 125.000 Production labour (b) Factory overheads (b) Distribution costs Administrative expenses) Finance costs Investment income Leased property-at cost (b) 100.000 Plant and equipment a cost (b) 99.000 Accumulated amortisation depreciation at 1/10/2017 leased property - plant and equipment Equity investments Inventory 1/10/17 Trade receivables Trade payables Bank Stated capital (GHSO ) Income surplus (1/10/2017) Deferred tax 1.000.00 The following notes are relevant: (a) Sales include goods sold and dispatched in September 2015 a 30-day night of return basis. Their selling price was GHS4.5m and they were sold a gross profit margin of 25%. In the past. Golden Lid's customers have always met their obligations under this type of agreement (b) Non-currentes In the course of the year. Golden Lad produced an item of equipment for its own use. The direct materials for the equipment cost GHSt and the labour cost GHS Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final selling price for goods by adding a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018 All plant and equipment is depreciated at 25% per assing the straight line method with time apportionment in the year of acquisition The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the leased property GHm, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The relation surplus will give rise to a deferred tax liability (see Note All amortisation and depreciation is charged to cost of sales. No amation or depreciation has yet been charged on any on-current set for the year ended 30 September 2013 (c) In July 2018, the share price of Golden Lad stood at GHS2.40 per share. On this date. Golden Lid paidan interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4% (d) Closing inventory on 30 September 2018 was valued at GHS109. (c) The equity investments had a fair value of GHS34 3m ca 30 September 2018. During the year there were ho purchases or disposals of any of these investments (0) A provision for income tax for the year ended 30 September 2015 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lad's net assets was GHS30 less than their carrying amounts This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ladis 30% 160,000 92.00 700 Material purchases) Production about Factory overheads Distribution costs Administrative expenses (c) Finance costs Investment income Leased property.cos(b) Plant and equipment - at costb) Accumulated amortisation depreciation 1/10/2017 - leased property plant and equipment Equity investments (e) Inventory 1/10/17 Trade receivables Tradeables Bank Stated capital (GHS02) Income surplus (1/102017) Deferred tax 20.000 29,000 36.000 67.100 55,600 4.000 100,000 1.043,400 3,400 1.043,400 The following notes are relevant (a) Sales include goods sold and dispatched in September 2015 on a 30-day night of return basis. Their selling price was GHS4.3m and they were sold to probe margin of 29%. In the past, Golden Lad's customers have always met their obligations under this type of agreement (b) Non-current assets: In the course of the year, Golden Lad produced in of equipment for its own use. The direct materials for the equipment cost GHStim and the labor con GHS Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final scling price for goods by diling a mark-up en total cost of 40%. The direct materials, labour and evadere included in the relevant expense items in the trial balance. The equipment was completed and was put on July 2015 All plant and equipment is depreciated at 29% per annum using the straight line method with time apportiment in the year of equisiti The management of Golden revalued the leased property in line with recent increases in market values. On 1 October 2017 an independent architect and the property at GHSm, which the management agreed to. The leased property had an originalusetul life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The valuation surplus will give rise to a deferred tax liability (see Noten All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 (e) In July 2018, the share price of Golden Ladd GHS2.40 per share. On this date. Golden Lal paidan interim dividend included in administrative expenses that was computed to give a dividend yield of 4% (Closing inventory on 30 September 2018 was valued at GHS109.im (e) The equity investments had a fair value of GH534 ) September 2018. During the year there were no purchases or disposals of any of these investments ( A provision for income tax for the year ended 30 September 2018 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lad's netwas GHS30mless than their carrying amounts This excludes the effects of the evaluation of the leased property. The income tax rate of Golden Lid is Required: Prepare the statement of profit or less and other comprensive income the statement of financial position and the statement of changes in equity for Golden Land for the year ended 30 September 2018 (20 marks)