Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Supreme Cement Company Limited (SCCL), a company listed on the Karachi and Lahore Stock Exchanges, is in process of finalization of its accounts for the

Supreme Cement Company Limited (SCCL), a company listed on the Karachi and Lahore Stock Exchanges, is in process of finalization of its accounts for the year ended 31 December 2012. The following information is available: Shareholders equity as at 31 December 2011 and 2010 consisted of: Description 2011 2010 Share capital 10340 7833 Unappropriated profit 6945 4508 The total comprehensive income for the years ended 31 December 2010, 2011 and 2012 (unaudited) was Rs. 4,240 million, Rs. 4,944 million and Rs. 5,090 million respectively. During the year ended 31 December 2012 it was observed that machinery purchased on 01 July 2011 for Rs. 35 million, was erroneously debited to stock-in-trade instead of property,

plant and equipment. SCCL depreciates machinery at the rate of 20% per annum on the reducing balance method. No adjustment has been made in respect of this material error. Requirement: Rectify the above error as per IAS-8

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

Step: 3

blur-text-image

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

Payroll Accounting 20

Authors: Bernard J. Bieg, Judith A. Toland

26th Edition

1337268798, 9781337268790

More Books

Students also viewed these Accounting questions

Question

7.1 Define selection and discuss its strategic importance.

Answered: 1 week ago