TB to FS QUESTION BASED on SESSION 3

The following trial balance relates to Sweet FA Ltd at 31 March 20X5:

SWEET FA Ltd.
Trial Balance at 31 March 20X5
Revenue		520,000
Cost of sales	304,900
Selling and Distribution expenses	7,600
Administration expenses	19,800
Loan interest paid	4,800
Land & Buildings Cost	200,000
Land & Buildings Depreciation at 1 April 20X4		37,500
Plant and Equipment cost	168,600
Plant and Equipment Depreciation at 1 April 20X4		48,600
Investment Property	85,000
Trade receivables	59,200
Inventory 31 March 20X5	18,800
Bank		3,950
Trade payables		35,200
Ordinary shares (25p each)		70,000
Share premium		13,000
5% Loan note - Repayable 31 March 20X6		40,000
Retained earnings at 1 April 20X4		96,450
Dividends Paid	8,000
Suspense Account		12,000
	876,700	876,700

The following notes are relevant:

1. On 1 April 20X4, Sweet FA re-valued its land and buildings portfolio as per the following schedule:

Original Cost Re-valued Amount

Land 50,000 60,000

Buildings 150,000 180,000

Total 200,000 240,000

The revaluation has not yet been recorded in the financial statements.

Land is not depreciated. The buildings had an estimated useful economic life of 40 years when they were acquired 10 years ago. Depreciation is charged on a straight line basis and is to be split equally between Cost of Sales and Administration expenses.

1. During the year, Sweet FA sold some plant that had cost 20,000. Up to the date of sale the accumulated depreciation on this plant was 7,200. The proceeds of this sale were 12,000 which were correctly transacted to the bank account. However the book-keeper did not know how to account for an asset disposal and so just credited a suspense account expecting the accountant to sort it out later.

1. Plant and equipment is to be depreciated on the reducing balance basis at a rate of 20% per annum. Sweet FA charges a full years depreciation in the year of acquisition and none in the year of disposal.

1. Sweet FA chooses the fair value model for Investment Properties. They are recorded in the trial balance at their fair value as at 31 March 20X4. At 31 March 20X5 independent valuers have assessed their fair value to be 115,000.

1. The directors have estimated the provision for corporation tax for the year to 31 March 20X5 at 40,000.

REQUIRED:

Prepare

1. A statement of profit or loss for the year to 31 March 20X5.

1. A statement of changes in equity for the year to 31 March 20X5

1. A statement of financial position as at 31 March 20X5

in a form suitable for presentation to the shareholders and in accordance with the requirements of International Accounting Standards.

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