The following trial balance relates to Xtol at 31 March 2014: $'000 $'000 Revenue (note (i)) 490,000 Cost of sales 290,600 Distribution costs 33,500 Administrative expenses 36,800 Loan note interest and dividends paid (notes (iv) and (v)) 13,380 Bank interest 900 20-year leased property at cost (note (ii)) 100,000 Plant and equipment at cost (note (ii)) 155,500 Accumulated amortisation/depreciation at 1 April 2013: leased property plant and equipment 25,000 43,500 Inventory at 31 March 2014 61,000 Trade receivables 63,000 Trade payables 32,200 Bank 5,500 Equity shares of 25 cents each (note (ii)) 56,000 Share premium Retained earnings at 1 April 2013 5% convertible loan note (note (iv)) Current tax (note (vi)) 25,000 26,080 50,000 3,200 Deferred tax (note (vi)) The following notes are relevant: 4,600 757,880 757,880 (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 2014, 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% % per annum on the reducing balance basis. All amortisation/depreciation of non-current assets is charged to cost of sales. (ii) On 1 August 2013, Xtol made a fully subscribed rights issue of equity share capital based on two new shares at 60 cents each for every five shares held. The market price of Xtol's shares before the issue was $1-02 each. The issue has been fully recorded in the trial balance figures. (iv) On 1 April 2013, Xtol issued a 5% $50 million convertible loan note at par. Interest is payable annually in arrears on 31 March each year. The loan note is redeemable at par or convertible into equity shares at the option of the loan note holders on 31 March 2016. The interest on an equivalent loan note without the conversion rights would be 8% per annum. The present values of $1 receivable at the end of each year, based on discount rates of 5% and 8%, are: End of year 1 5% 0-95 8% 0-93 0-91 0-86 0-86 0-79 (V) An equity dividend of 4 cents per share was paid on 30 May 2013 and, after the rights issue, a further dividend of 2 cents per share was paid on 30 November 2013. (vi) The balance on current tax represents the underlover provision of the tax liability for the year ended 31 March 2013. A provision of $28 million is required for current tax for the year ended 31 March 2014 and at this date the deferred tax liability was assessed at $8.3 million. Required: (a) Prepare the statement of profit or loss for Xtol for the year ended 31 March 2014. (b) Prepare the statement of changes in equity for Xtol for the year ended 31 March 2014. (c) Prepare the statement of financial position for Xtol as at 31 March 2014. Question-1 The following trial balance relates to Xtol at 31 March 2014: $'000 Revenue (note (i)) $'000 490,000 Cost of sales 290,600 Distribution costs 33,500 Administrative expenses 36,800 Loan note interest and dividends paid (notes (iv) and (v)) 13,380 Bank interest 900 20-year leased property at cost (note (ii)) 100,000 Plant and equipment at cost (note (ii)) 155,500 Accumulated amortisation/depreciation at 1 April 2013: leased property 25,000 plant and equipment 43,500 Inventory at 31 March 2014 61,000 Trade receivables 63,000 Trade payables 32,200 Bank 5,500 Equity shares of 25 cents each (note (iii)) 56,000 Retained earnings at 1 April 2013 Share premium 5% convertible loan note (note (iv)) Current tax (note (vi)) 25,000 26,080 50,000 3,200 Deferred tax (note (vi)) The following notes are relevant: 4,600 757,880 757,880 (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 2014, 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% per annum on the reducing balance basis. All amortisation/depreciation of non-current assets is charged to cost of sales. (iii) On 1 August 2013, Xtol made a fully subscribed rights issue of equity share capital based on two new shares at 60 cents each for every five shares held. The market price of Xtol's shares before the issue was $1-02 each. The issue has been fully recorded in the trial balance figures. (iv) On 1 April 2013, Xtol issued a 5% $50 million convertible loan note at par. Interest is payable annually in arrears on 31 March each year. The loan note is redeemable at par or convertible into equity shares at the option of the loan note holders on 31 March 2016. The interest on an equivalent loan note without the conversion rights would be 8% per annum. The present values of $1 receivable at the end of each year, based on discount rates of 5% and 8%, are: End of year 1 2 3 5% 8% 0.95 0.93 0.91 0-86 0.86 0.79 (v) An equity dividend of 4 cents per share was paid on 30 May 2013 and, after the rights issue, a further dividend of 2 cents per share was paid on 30 November 2013. (vi) The balance on current tax represents the under/over provision of the tax liability for the year ended 31 March 2013. A provision of $28 million is required for current tax for the year ended 31 March 2014 and at this date the deferred tax liability was assessed at $8.3 million.