SECTIONS Answer Question 7 in this section. This question is compulsory and carries 26 marks. 7. The following Trial Balance was extracted from the books of XYZ Limited on 31 December 2017 c Ordinary Share Capital (COSO per Share) 900,000 Revaluation reserve 125.000 Share premium 225.000 Retained earnings 675,000 Interm ordinary dividend paid 22.500 5 Malta Government Stocks (MGS) 10,000 Freehold land 1.300.000 Buildings 350,000 Equipment 14,500 Motor vehicles 75.000 Allowance for depreciation / Duldings 162,300 Equipment 47.650 Motor vehicles 11.250 Inventories (31 December 2015) 133.400 Trade receivables/payables 24.100 122.050 Allowance for bad debts 12.000 Bank 775.000 Purchase Sales 675.000 1.336,000 Returns outwards 20.950 Interest on MGS 3.250 Seting & distribution costs 120,000 Water electricity 15,700 Miscellaneous expenses 13.500 Administrative expenses 110,000 Suspense 234.250 4,074,700 4,074,700 The following information is also available: a) Inventory held at your end was valued : 55.000 b) Administrative expenses and water and electricity costs incurred but still outstanding of year end amounted to C27.500 and 1.350. respectively XYZ Limited carries non currentes cumulated depreciation with the exception of land which is carried at realed amount. The company's architect valued the land at C1,200,000 as at 31 December 2017 d) Non current assets are depreciated as follow Buildings at 2 Straight Line Method Equipment at 20% Reducing Balance Method, ant Motor Vehicles at 20. Reducing Balance Method e) The receivables balance indudes an amount of 20.000 owed by a customer who has been declared bankrupt. A review of other receivables indicates that of these are expected as credit losses fet collectable) While reviewing transactions for 2017 in order to resolve the balance on the Suspense Account the following were noted: Goods returned by customers amounting to 875 were posted to the Returns Outwards account and credited in the customers account Equipment C10,000, acquired during the year, was assified as ) sep Included in the purchases figures 2.000 worth of goods for resale. These goods were subject to tradescount. The accountant of XYZ Limited corded the purchase by otting the purchases account and crediting the trade Dayables account with the ful gross amount of 2.000 or return basis sales XYZ Roof 20 These goods were not sold by During 2017, XYZ Limited issued 100.000 ordinary shares at each share in addition, on 1 December 2017, the company issued C150,000 debentures par with a coupon rate of maturing 2027. Both werely taken up and the cash was deposited in the tank, but no other entries were made in the books. Required: A for the year ended 31 December 2017, prepare the following statements for XYZ Limited A Statement of Profit and Los A Statement of Changes in Equity (5) B. Prepare a statement of Financial Position 1 December 2017 The (15) SECTIONS Answer Question 7 in this section. This question is compulsory and carries 26 marks. 7. The following Trial Balance was extracted from the books of XYZ Limited on 31 December 2017 c Ordinary Share Capital (COSO per Share) 900,000 Revaluation reserve 125.000 Share premium 225.000 Retained earnings 675,000 Interm ordinary dividend paid 22.500 5 Malta Government Stocks (MGS) 10,000 Freehold land 1.300.000 Buildings 350,000 Equipment 14,500 Motor vehicles 75.000 Allowance for depreciation / Duldings 162,300 Equipment 47.650 Motor vehicles 11.250 Inventories (31 December 2015) 133.400 Trade receivables/payables 24.100 122.050 Allowance for bad debts 12.000 Bank 775.000 Purchase Sales 675.000 1.336,000 Returns outwards 20.950 Interest on MGS 3.250 Seting & distribution costs 120,000 Water electricity 15,700 Miscellaneous expenses 13.500 Administrative expenses 110,000 Suspense 234.250 4,074,700 4,074,700 The following information is also available: a) Inventory held at your end was valued : 55.000 b) Administrative expenses and water and electricity costs incurred but still outstanding of year end amounted to C27.500 and 1.350. respectively XYZ Limited carries non currentes cumulated depreciation with the exception of land which is carried at realed amount. The company's architect valued the land at C1,200,000 as at 31 December 2017 d) Non current assets are depreciated as follow Buildings at 2 Straight Line Method Equipment at 20% Reducing Balance Method, ant Motor Vehicles at 20. Reducing Balance Method e) The receivables balance indudes an amount of 20.000 owed by a customer who has been declared bankrupt. A review of other receivables indicates that of these are expected as credit losses fet collectable) While reviewing transactions for 2017 in order to resolve the balance on the Suspense Account the following were noted: Goods returned by customers amounting to 875 were posted to the Returns Outwards account and credited in the customers account Equipment C10,000, acquired during the year, was assified as ) sep Included in the purchases figures 2.000 worth of goods for resale. These goods were subject to tradescount. The accountant of XYZ Limited corded the purchase by otting the purchases account and crediting the trade Dayables account with the ful gross amount of 2.000 or return basis sales XYZ Roof 20 These goods were not sold by During 2017, XYZ Limited issued 100.000 ordinary shares at each share in addition, on 1 December 2017, the company issued C150,000 debentures par with a coupon rate of maturing 2027. Both werely taken up and the cash was deposited in the tank, but no other entries were made in the books. Required: A for the year ended 31 December 2017, prepare the following statements for XYZ Limited A Statement of Profit and Los A Statement of Changes in Equity (5) B. Prepare a statement of Financial Position 1 December 2017 The (15)