Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Section A Below is the summarised draft statement of financial position of Juniper Ltd, a publicly listed company, as at 31 March 2019, 5'000 5

image text in transcribed
image text in transcribed
image text in transcribed
Section A Below is the summarised draft statement of financial position of Juniper Ltd, a publicly listed company, as at 31 March 2019, 5'000 5 000 ASSETS Non-current assets Property at valuation: Land 20,000 Buildings 165,000 185.000 Plant (NBV) 180,500 Long term receivables 12,500 378,000 Current Assets Inventories 84,000 Trade Receivables 52,200 Cash and cash equivalents 3.800 140,000 Total assets 518,000 Equity 250,000 Ordinary Shares of $1 each 40.000 Share premium 18,000 Revaluation surplus Retained earnings at 1 April 2018 12,300 for the year ended 31 March 2019 96,700 109,000 417,000 Non Current Labilities Loan 19,200 Current Liabilities 81,800 Total equity and liabilities 518,000 it is late May 2019 and the Board of Directors require an updated draft to finalise to meet the deadline to the Stock Exchange. The following information is relevant: il The non-current assets have not been deprecated for the year ended 31 March 2019 Juniper Ltd has a policy of revaluing its land and buildings at the end of each accounting year. The values in the above statement of financial position are as at 1 April 2018 when the buildings had a remaining life of 15 years. A qualified consultant has valued the land and buildings as at 31 March 2019 at $180 million Plant is depreciated at 20% on the reducing balance basis. In early April 2019, the Chief Financial Officer discovered a material fraud perpetrated by the company's financial controller that had been occurring for some time Investigations presented at a meeting earlier in the week revealed that a total of S4 million of the trade receivables as shown in the statement of financial position at 31 March 2019 had in fact been paid by the debtor and the funds stolen by the financial controller.The analysis further revealed that $1.5 million had been stolen in the year 31 March 2018. The company is not insured for this loss and it cannot be recovered from the financial controller Dividends totaling $15.5 million were paid and accounted for during the year iv. The figures do not include the estimated provision for income tax on the profit for the year ended 31 March 2019. Tax consultants have estimated the provision at $11.4 million V. it is company policy for professional fees related to the financial statements are paid after submission to the stock Exchange. The external auditors and tax consultants have presented their fees related to preparation of the financial statements at $2.5 million. This is $500,000 more than what was estimated in previous drafts of the financial statements Required Based on the additional information: a) Prepare a statement showing the recalculation of Juniper Ltd's net profit for the year ended 31 Match 2019 10 marks) b) Redraft the Statement of Financial Position of Juniper Ltd as at March 31, 2019 (15 maris) Notes to the financial statements are not required however showing workings is encouraged

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

European Financial Reporting Adapting To A Changing World

Authors: J. Flower

2nd Edition

0333685180, 9780333685181

More Books

Students also viewed these Accounting questions