Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following notes are relevant: (i) Revenue includes an amount of $20 million for cash sales made through Xtol's retail outlets during the year on

image text in transcribed
The following notes are relevant: (i) Revenue includes an amount of \$20 million for cash sales made through Xtol's retail outlets during the year on behalf of Francais. Xtol, acting as agent, is entitled to a commission of 10% of the selling price of these goods. By 31 March 20X4, Xtol had remitted to Francais \$15 million (of the $20 million sales) and recorded this amount in cost of sales. (ii) Plant and equipment is depreciated at 12% on the reducing balance basis. All amortisation and depreciation of non-current assets is charged to cost of sales. (iii) A provision of $28 million is required for current tax for the year ended 31 March 20X4. (iv) At 3Apr20X4, a customer of business declare bankrupt, this client own the entity $15,000. Required (a) Prepare the statement of profit or loss for Xtol for the year ended 31 March 20X4 (8 marks) (b) Prepare the statement of financial position for Xtol for the year ended 31 March 20X4 (12 marks) The following notes are relevant: (i) Revenue includes an amount of \$20 million for cash sales made through Xtol's retail outlets during the year on behalf of Francais. Xtol, acting as agent, is entitled to a commission of 10% of the selling price of these goods. By 31 March 20X4, Xtol had remitted to Francais \$15 million (of the $20 million sales) and recorded this amount in cost of sales. (ii) Plant and equipment is depreciated at 12% on the reducing balance basis. All amortisation and depreciation of non-current assets is charged to cost of sales. (iii) A provision of $28 million is required for current tax for the year ended 31 March 20X4. (iv) At 3Apr20X4, a customer of business declare bankrupt, this client own the entity $15,000. Required (a) Prepare the statement of profit or loss for Xtol for the year ended 31 March 20X4 (8 marks) (b) Prepare the statement of financial position for Xtol for the year ended 31 March 20X4 (12 marks)

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

The Oxford Handbook Of Entrepreneurial Finance

Authors: Douglas Cumming

1st Edition

0195391241, 978-0195391244

More Books

Students also viewed these Finance questions