this is a financial reporting question
GHS000 The following trial balance relates to Golden Lad at 30 September 2015 GHS Sales (a) Material purchases (b) Production labour (b) Factory overheads (b) Distribution costs Administrative eps (c) 100,000 Investment income Leased property - al cost(b) Plant and equipment at cost(b) Accumulated amortisation depreciation 1/10/2017 leased property - plant and equipment Equity investments (e) Inventory at 1/10/17 Trade receivables Trade payables 67.100 100.000 Suted capital (GHS0.2) Income saplos (1/10/2017) Deferred tax 1.00.400 1033.00 The following notes are relevant: (a) Sales include goods sold and dispatched in September 2018 a 30-day night of return basis. Their selling price was GHS4.Rm and they were sold at a gross profit margin of 25% the past, Golden Lid's customers have always met their obligations under this type of agreement (b) Non-current assets: In the course of the year, Golden Lod produced an item ofciment for its own use. The direct materials for the equipment Cost GHS6m and the labour cost GHSam Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final selling price for goods by ling a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018 All plant and equipment is depreciated # 25% per annum height line method with time apporticement in the year of acquisition The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the leased property GHS, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The evaluation surplus will give rise to a deferred tax liability (see Note 1) All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 (c) In July 2018, the share price of Golden Lad stood at GHS2.40 per share. On this date, Golden Lad paid an interim dividend included in administrative expenses) that was computed to give a dividend yield of 4% (a) Closing inventory on 30 September 2018 was valued at GHS109.6m (e) The equity investments had a fair value of GHS34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments ( A provision for income tax for the year ended 30 September 2018 of GHSX.ben is required. At 30 September 2018, the tax base of Golden Lad's net assets was GHS30mless than their carrying amounts This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Lid is 30% Required: Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in equity for Golden Ltd for the year ended 30th September 2018. (20 marks) GHS000 The following trial balance relates to Golden Lad at 30 September 2015 GHS Sales (a) Material purchases (b) Production labour (b) Factory overheads (b) Distribution costs Administrative eps (c) 100,000 Investment income Leased property - al cost(b) Plant and equipment at cost(b) Accumulated amortisation depreciation 1/10/2017 leased property - plant and equipment Equity investments (e) Inventory at 1/10/17 Trade receivables Trade payables 67.100 100.000 Suted capital (GHS0.2) Income saplos (1/10/2017) Deferred tax 1.00.400 1033.00 The following notes are relevant: (a) Sales include goods sold and dispatched in September 2018 a 30-day night of return basis. Their selling price was GHS4.Rm and they were sold at a gross profit margin of 25% the past, Golden Lid's customers have always met their obligations under this type of agreement (b) Non-current assets: In the course of the year, Golden Lod produced an item ofciment for its own use. The direct materials for the equipment Cost GHS6m and the labour cost GHSam Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final selling price for goods by ling a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018 All plant and equipment is depreciated # 25% per annum height line method with time apporticement in the year of acquisition The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the leased property GHS, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The evaluation surplus will give rise to a deferred tax liability (see Note 1) All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 (c) In July 2018, the share price of Golden Lad stood at GHS2.40 per share. On this date, Golden Lad paid an interim dividend included in administrative expenses) that was computed to give a dividend yield of 4% (a) Closing inventory on 30 September 2018 was valued at GHS109.6m (e) The equity investments had a fair value of GHS34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments ( A provision for income tax for the year ended 30 September 2018 of GHSX.ben is required. At 30 September 2018, the tax base of Golden Lad's net assets was GHS30mless than their carrying amounts This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Lid is 30% Required: Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in equity for Golden Ltd for the year ended 30th September 2018. (20 marks)
