Slipstir plc Statement of Financial Position As on 31-March-2021 Assets '000 '000 Cash 600 Buildings 13,500 Machinery (at cost) 6,620 Less: Accumulated Dep 3,033 3,587 Investments 10,030 Trade Receivable 1,760 Inventory 1,505 Total assets 30,982 Liabilities Trade Payable Shareholders Equity Equity shares (nominal value 1) Revaluation reserve Retained earnings Add: Net profit Less: Dividend paid Total Equity Total Liabilities and equity 1,870 1,870 12,750 1,900 14,874 988 15,862 (1,400) 14,462 29,112 30,982 Slipstir plc Income Statement For the year Ended 31-Mar-2021 '000 '000 Sales 10,232 Less: Cost of sales Opening stock 1,340 Add: Purchases 4,710 Less: Closing stock (1,505) Total 4,545 Wages & salaries 2,226 6,771 Gross Profit 3,461 Investment income 1,071 Total Income 4,532 Expenses: General administrative expenses 1,780 Sales and distribution costs 1,131 Depreciation on macinery 633 3,544 Net Income 988 Slipstir plc Journal Entries Sl No Debit Credit Description '000 '000 1 Sales To Suspense account 18 18 2 Supense account 24 To Wages 24 24 3 Supense account To Cash 20 20 4 Supense account 650 To Revaluation reserve 650 Slipstir plc Statement of Change in Equity For the Year Ended 31 March, 2021 Common Stock Revaluation Reserve Retained Earnings Total '000 '000 '000 '000 Opening Balance Add: Revaluation of Building Add: Net profit during the year 12,750 1,250 650 14,874 28,874 650 988 988 Total 12,750 1,900 15,862 30,512 Less: Dividend paid (1,400) (1,400) Retained Earnings at December 31, 2017 12,750 1,900 14,462 29,112 [4 marks] PART B Using the calculations you have made and the information from the trial balance in PART A, you also collect the following additional information to finalise the financial statements: Depreciation is charged at 15% per year on a reducing balance basis for machinery. Inventory at 31 March 2021 was 1,505,000. The company paid a dividend of 1,400,000 during the year for which no adjustment has been made. REQUIRED Prepare a statement of profit or loss and a statement of changes in equity for the year ended 31 March 2021, and a statement of financial position as at that date. Use appropriate headings and show all workings. [19 marks]