TWO The following trial balance relates to Golden Ltd at 30th September 2018 Sales (a) Material purchases (b) Production labour (b) Factory overheads (b) Distribution costs Administrative expenses (c) Finance costs Investment income Leased property - at cost (b) Plant and equipment - at cost (b) Accumulated amortisation/depreciation at 1/10/2017 - leased property - plant and equipment Equity investments (e) Inventory at 1/10/17 Trade receivables Trade payables Bank Stated capital (GH0.2) Income surplus (1/10/2017) Deferred tax (f) The following notes are relevant: 368600 (Total: 15 marks) Ghe000 GH 000 760,000 128,000 248,000 160,000 28,400 92,800 700 1,600 100,000 89,000 20,000 29,000 36,000 93,400 67,100 55,600 4,600 100,000 67,200 5,400 1,043,400 1,043,400 (a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their selling price was GH4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Ltd.'s customers have always met their obligations under this type of agreement. (b) Non-current assets: In the course of the year, Golden Ltd produced an item of equipment for its own use. The direct materials for the equipment cost GH6m and the labour cost GH8m. Manufacturing overheads are 50% of direct labour cost and Golden Ltd determines the final selling price for goods by adding 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 at 25% per annum using the straight line method with time apportionment in the year of acquisition. The management of Golden revalued the leased property in line with recent increases in market values. On 1 October 2017 an independent architect valued the leased property at GHe96m, 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 revaluation surplus will give rise to a deferred tax liability (see Note f). 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 Ltd stood at GH2.40 per share. On this date, Golden Ltd paid an interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4%. (d) Closing inventory on 30 September 2018 was valued at GH109.6m. (e) The equity investments had a fair value of GH34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments. (f) A provision for income tax for the year ended 30 September 2018 of GH48.6m is required. At 30th September 2018, the tax base of Golden Ltd.'s net asset was GH30m less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ltd is 30%. Required: prepare for publication; i. Statement of profit or loss and other comprehensive income for the year ended 30 September, 2018. (8 marks) ii. iii. Statement of changes in equity for the year ended 30 September, 2018. (4 marks) Statement of financial position as at 30th September, 2018. (8 marks) (Total: 20 marks) In the course of the year, Golden Ltd produced an item of equipment for its own use. The direct materials for the equipment cost GH6m and the labour cost GH8m. Manufacturing overheads are 50% of direct labour cost and Golden Ltd determines the final selling price for goods by adding 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 at 25% per annum using the straight line method with time apportionment in the year of acquisition. The management of Golden revalued the leased property in line with recent increases in market values. On 1 October 2017 an independent architect valued the leased property at GH96m, 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 revaluation surplus will give rise to a deferred tax liability (see Note f). 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 Ltd stood at GH2.40 per share. On this date, Golden Ltd paid an interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4%. (d) Closing inventory on 30 September 2018 was valued at GH109.6m. (e) The equity investments had a fair value of GH34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments. (f) A provision for income tax for the year ended 30th September 2018 of GH48.6m is required. At 30th September 2018, the tax base of Golden Ltd.'s net asset was GH30m less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ltd is 30%.. Required: prepare for publication; Statement of profit or loss and other comprehensive income for the year ended 30th September, 2018. i. (8 marks) ii. Statement of changes in equity for the year ended 30th September, 2018. (4 marks) iii. Statement of financial position as at 30th September, 2018. (8 marks) (Total: 20 marks)