SECTION B (60 marks)

Question 5 (20)

The following trial balance as at 30 April 2021 has been provided:

	Debit $ 000	Credit $ 000
Ordinary share capital Revaluation surplus @ 1 May 2020 Trade payables Land and buildings at cost Provision for depreciation @ 1 May 2020 Plant and equipment at cost provision for depreciation @ 1 May 2020 Trade receivables Accruals 4% debentures-payable 2029 Cash and bank Retained profits @ 1 May 2020 Interest paid Sales revenue Purchases Distribution costs Administrative expenses Opening inventories Dividends paid	40,000 16,000 13,641 5,102 400 52,342 10,847 12,961 7,986 1,000	40,000 5,000 10,456 1,200 7,000 57 10,000 2,640 83,926
	160,279	160,279

Additional information:

1. Closing inventories at 30 April 20-1 cost $6,304,000.
2. Land (not depreciated) included in the trial balance is worth $30,000,000. Land should be revalued at $35,000,000. This revaluation should be included in the financial statements for the year ended 30 April 2021.
3. Depreciation is provided as follows for the period ending 30 April 2021:

Buildings 2% per annum on a straight-line basis

Plant and equipment 25% per annum on a reducing balance basis

4. Depreciation is apportioned as follows:

%

Distribution expenses 20

Cost of goods sold 50

Administrative costs 30

5. A debt of $25,000 is to be written off as irrecoverable. Irrecoverable debts are administrative costs.
6. An amount of $32,000 is still owing at 30 April 2021 for distribution expenses.
7. Corporation tax of $652,000 has been calculated and charged for the year.

You are required to:

1. Prepare the statement of profit or loss and other comprehensive income for the period ending 30 April 2021.
2. Prepare the statement of changes in equity for the period ending 30 April 2021.