Question Tag: Statement of Profit or Loss

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FR – Nov 2015 – L2 – Q2 – Presentation of Financial Statements (IAS 1)

Prepare a statement of profit or loss and other comprehensive income for Well-Being Plc.

Question

The following trial balance has been extracted from the books of Well-Being Plc as at March 31, 2014:

	N’000	N’000
Land at cost	360
Building at cost	750
Equipment at cost	588
Vehicles at cost	852
Goodwill	900
Accumulated depreciation:
– Buildings		270
– Equipment		228
– Vehicles		396
Inventory at April 1, 2013	321
Trade receivables and payables	549	351
Allowance for receivables		24
Bank balances		171
Current taxation		18
Ordinary shares of N1 each		600
Retained earnings at April 1, 2013		1,509
Revenue		4,296
Purchases	1,464
Directors’ fees	450
Wages and salaries	828
General distribution costs	303
General administrative expenses	558
Dividend paid	60
Rent received		90
Disposal of vehicle		30
Total	7,983	7,983

Additional information:

The company’s non-depreciable land was valued at ₦900,000 on March 31, 2014, and this valuation is to be incorporated into the accounts.
Depreciation policy:
- Building: 4% p.a. (straight line)
- Equipment: 40% p.a. (reducing balance)
- Vehicles: 25% p.a. (straight line) In all cases, a full year’s depreciation is charged in the year of disposal.
On February 1, 2014, a vehicle used entirely for administrative purposes was sold for ₦30,000 (cost ₦132,000). No other entries were made.
Depreciation is apportioned as follows:
- Buildings: 50% distribution, 50% administrative
- Equipment: 25% distribution, 75% administrative
- Vehicles: 70% distribution, 30% administrative
Inventory at March 31, 2014, is valued at ₦357,000.
Trade receivables include a debt of ₦24,000 to be written off. The allowance for receivables is to be adjusted to 4% of receivables after the write-off.
Current tax for the year ended March 31, 2013, was over-estimated by ₦18,000. Current tax for 2014 is estimated at ₦90,000.
One-quarter of wages and salaries was paid to distribution staff and the remaining three-quarters to administrative staff.
General administrative expenses include bank overdraft interest of ₦27,000.

Required:
Prepare a statement of profit or loss and other comprehensive income for the year ended March 31, 2014.

Answer

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Tags: Administrative Expenses, Depreciation, Inventory, Statement of Profit or Loss
Level: Level 2

Topic: Presentation of Financial Statements (IAS 1)
Series: NOV 2015

FA – May 2013 – L1 – SB – Q3 – Financial Statements Preparation

This question asks for the preparation of Mr. Pamona’s Statement of Profit or Loss and Statement of Financial Position following a theft in his shop.

Question

Mr. Pamona owns a corner shop in Lagos. On 30 December 2012, vandals looted his shop, stole all his inventories and cash of ₦75,000. Mr. Pamona was fully insured against theft and he has asked you to prepare his accounts to enable him estimate his insurance claim. Your investigation revealed the following:

i. Net assets on 1 January 2012:

Furniture and fittings:
Cost: ₦900,000
Accumulated depreciation: ₦(400,000)
Carrying value: ₦500,000
Inventories: ₦2,700,000
Trade receivables: ₦430,000
Prepayments (rates): ₦30,000
Cash in bank: ₦2,140,000
Cash float in till: ₦30,000
Trade payables: ₦1,650,000
Accrued electricity: ₦40,000

ii. Bank statements for nine months from 1 January 2012 show the following:
Receipts:

Cash and cheques lodged: ₦20,060,000
Investment income: ₦182,000
Total: ₦20,242,000

Payments:

Trade payables: ₦17,850,000
Rent (1 January – 31 December): ₦1,200,000
Electricity: ₦155,000
Insurance – theft: ₦45,000
Insurance – life: ₦107,000
Telephone: ₦83,000
Total: ₦19,440,000

iii. The following were paid in cash from the till:

Trade payables: ₦2,400,000
Drawings (per month): ₦295,000

iv. Mr. Pamona’s gross profit margin on sales has averaged 20% in recent years.

v. The furniture and fittings are now estimated to be worth only ₦200,000.

vi. A cheque for ₦52,000 in respect of the telephone bill for the quarter ended 30 September 2012 was not shown in the bank statements until 3 October 2012.

vii. Rates for the period 1 April to 1 October, 2012, amounting to ₦75,000 were still outstanding.

viii. Trade receivables and payables were ₦270,000 and ₦1,900,000 respectively on 30 September 2012.

You are required to prepare Mr. Pamona’s:
a. Statement of Profit or Loss for the nine-month period ended 30 September 2012. (10 Marks)
b. Statement of Financial Position as at that date. (5 Marks)

Answer

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Tags: Depreciation, Insurance Claims, Statement of Financial Position, Statement of Profit or Loss, Theft
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2013

FR – May 2020 – L2 – Q3a – Preparation of Statement of Profit or Loss

Prepare the statement of profit or loss for Badu Trading Ltd for the year ended 31 May 2020.

Question

Answer

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Tags: Final Accounts, Financial Reporting, Statement of Profit or Loss
Level: Level 2

Topic: Preparation of Financial Statements
Series: MAY 2020

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

Question

Oluyemi Ventures prepares its financial statements to March 31 each year. The business pays rent quarterly in advance on January 1, April 1, July 1, and October 1 each year. The annual rent is N600,000. On June 30, 2013, the rent was increased to N900,000 per annum.

Required:
i. Calculate the amount of rent that will be recognized in the Statement of Profit or Loss for the year ended March 31, 2014. (3 Marks)
ii. Calculate the amount to be recognized in the Statement of Financial Position as at March 31, 2014. (1 Mark)

Answer

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Tags: Accrual Accounting, Rent Expense, Statement of Profit or Loss
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FA – Nov 2015 – L1 – SB – Q1 – Financial Statements Preparation

Prepare financial statements for a company, including income and balance sheet, with adjustments for accruals and depreciation.

Question

The following balances remained in the books of Lagbaja Plc at December 31, 2014 after determining the gross profit:

Item	N’000
Share capital, authorised and issued	200,000
Cash at bank and in hand	500
Inventory at December 31, 2014	61,200
Trade receivables	18,005
Trade payables	15,009
Gross profit at December 31, 2014	128,942
Retained earnings	25,000
Salaries & Wages	28,430
Prepayments	600
Bad debts	500
Accrued expenses	526
Director’s account (credit)	2,500
Finance cost on loan note	600
Sundry expenses	4,100
Rates & insurance	1,520
6% Loan notes	20,000
Lighting & cooling	1,310
Postage, telephone and telegrams	800
Motor vehicle (cost N25 million)	15,000
Office fittings and equipment	42,350
Profit at January 1, 2014	22,300
Land and buildings at cost	239,362

The following additional information is relevant:

Office fittings and equipment are to be depreciated at 15% of cost, and Motor vehicles at 20% of cost.
Provisions are to be made for:
- Directors’ Fees N6,000,000
- Audit Fees N2,500,000
The amount of insurance includes a premium of N600,000 paid in September 2014 to cover the company against fire for the period September 1, 2014, to August 31, 2015.
A bill for N548,000 in respect of electricity consumed up to December 31, 2014, has not been posted to the ledger.

Required: a. Prepare the Statement of profit or loss for the year ended December 31, 2014; (10 Marks)
b. Prepare the Statement of financial position as at December 31, 2014. (10 Marks)

Answer

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Tags: Accruals, Depreciation, Financial Adjustments, Statement of Financial Position, Statement of Profit or Loss
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2015

FR – Nov 2019 – L2 – Q3 – Preparation of Financial Statements

Preparation of statement of profit or loss and statement of financial position for Biggs Ltd as at 31 December 2018.

Question

Biggs Ltd has a financial year ending 31 December. Its trial balance extracted as at 31 December 2018 is as follows:

Additional Information:
i) The carrying value of inventories at cost at 31 December 2018 was GH¢39.5 million.
The estimated useful life (at the date of purchase) of the PPE components is:

Land: infinite life
Buildings: 50 years
Plant and equipment: 5 years

On 30 June 2018, the directors decided to sell the property because more suitable leasehold property had become available at a very competitive cost. They advertised the property for sale at that date at what was considered to be a realistic asking price of GH¢68 million. They estimated that costs of GH¢3 million would be necessary in order to sell the property. On 1 December 2018, they reduced the asking price to GH¢64.5 million and sold the property at this price shortly after the year-end. Costs to sell totaled GH¢2.5 million.

Required:
Prepare for Biggs Ltd:
a) The Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2018. (10 marks)
b) The Statement of Financial Position as at 31 December 2018. (10 marks)

ii) On 1 January 2018, Biggs Ltd sold some of its plant and equipment to a finance company. Biggs Ltd credited the sales proceeds of GH¢25.6 million to revenue. The plant and equipment were purchased by Biggs Ltd on 1 January 2017 at a total cost of GH¢32 million and were being depreciated over five years. The cost and accumulated depreciation of the disposed asset are still included in the PPE cost and accumulated depreciation accounts.

iii) On 1 January 2018, Biggs Ltd issued 200 million preference shares at 32.50 pesewas each. Costs of issue were GH¢1 million so the net proceeds of the issue were GH¢64 million. The preference shareholders will receive an annual dividend on 31 December each year of GH¢3.9 million. The shares will be redeemed at par on 31 December 2022. The effective annual finance cost attached to these shares is approximately 6.4%. The first annual dividend was paid on 31 December 2018 and is included in dividends paid.

iv) The estimated income tax on the profits for the year to 31 December 2018 is GH¢4.5 million. During the year GH¢4.2 million was paid in full and final settlement of income tax on the profits for the year ended 31 December 2017. The statement of financial position at 31 December 2017 had included GH¢4.4 million in respect of this liability. At 31 December 2018, the carrying amounts of the net assets of Biggs Ltd exceeded their tax base by GH¢35.8 million. Assume an income tax rate of 25%.

v) The details of property, plant, and equipment are as follows:

Answer

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Tags: Depreciation, Financial Statements, Revenue, Statement of Financial Position, Statement of Profit or Loss, Trial Balance
Level: Level 2

Topic: Preparation of Financial Statements
Series: NOV 2019

FR – July 2023 – L2 – Q3 – Preparation of Financial Statements for Beposo Ltd

Preparation of financial statements (profit or loss, changes in equity, and financial position) for Beposo Ltd for the year ended 31 December 2021.

Question

Beposo Ltd is an agro-processing company, whose head office is in the Greater Accra region of Ghana. The trial balance of the company for the year ended 31 December 2021 is as follows:

Additional Information:

i) Included in the revenue figure is sales made on special arrangement, payable by customers in two years’ time at an amount of GH¢16.8 million. The cash price of the sales at the date of the sales (i.e. 1 January 2021) is estimated at GH¢15 million, and the effective interest rate of the arrangement has been computed as 5.83% per annum.

ii) Non-current assets consist of the following classes of assets:

The company revalues its buildings periodically to ensure that the carrying value reflects their fair market value. On 31 December 2020, the buildings were revalued at GH¢198 million, of which GH¢80 million was attributed to land. The revaluation surplus shown in the trial balance represents the increase in value recorded during this revaluation. All buildings were completed and ready for use on 1 January 2011. The company’s buildings serve as administrative offices and production centers, and they have an estimated useful life of 50 years.

In 2021, the company relocated from one of its administrative offices and sold the building on 1 April 2021 for GH¢27.6 million. The revalued amount and revaluation surplus for this building as of 31 December 2020 were GH¢25 million (with GH¢5 million for the land) and GH¢8 million, respectively. On 31 December 2021, the remaining land and buildings were revalued at GH¢169.35 million, with GH¢85 million attributed to the land. The company’s policy is to recognize revaluation surplus only upon derecognition of the non-current asset.

The sale of the building and the 2021 revaluation of the remaining buildings have not yet been recorded in the company’s books. The payment for the sale of the building was received in the first week of January 2022. There were no other changes to the value of property, plant, and equipment during the year ended 31 December 2021.

Depreciation for 2021 has not been accounted for in the trial balance. The company charges depreciation to cost of sales. Motor vehicles, machinery, and equipment are depreciated over five years.

In lieu of a cash dividend, the company issued bonus shares on 1 January 2021 at a ratio of one new share for every ten existing shares, priced at GH¢1 per share. The issuance was subject to an 8% withholding tax, which has already been paid by the company and is included in administrative expenses. The bonus shares, which are in respect of the year ended 31 December 2020, have not yet been recorded.

After 31 December 2021, the Board of Directors proposed a dividend of GH¢0.80 per share in respect of the year ended 31 December 2021. The dividend has not yet been approved by shareholders.

The provision for tax in the trial balance reflects the under or over provision of tax for the year ended 31 December 2020, based on the difference between the tax estimated for the year and the actual liability determined after a tax audit. The current tax liability for 2021 is estimated at GH¢16.7 million. Taxable temporary differences as at 31 December 2021, arising from discrepancies between the carrying amounts of assets and liabilities and their tax bases, amount to GH¢60 million. The applicable corporation tax rate is 25%.

Required:

Prepare the following financial statements for Beposo Ltd for the year ended 31 December 2021:
i) Statement of profit or loss and other comprehensive income
ii) Statement of changes in equity
iii) Statement of financial position as at that date.
(Total: 20 marks)

Answer

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Tags: Bonus Shares, Depreciation, Financial Statements, Revaluation, Statement of Changes in Equity, Statement of Financial Position, Statement of Profit or Loss, Taxation
Level: Level 2

Topic: Preparation of Financial Statements
Series: JULY 2023

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

Question

Mr. Ken Stevenson keeps single entry books of account. He had the following balances on 1 January, 2013:

N
Inventory
Payables
Prepaid insurance
Bank overdraft
Furniture
Motor vehicles
Receivables
Borrowings

The following information is extracted from his cash book in respect of the year ended 31 December 2013:

DR N	CR N
Revenue	279,500
Receipt from trade receivables	536,400







815,900	815,900

He had the following balances on 31 December 2013:

N
Motor vehicles
Inventory
Furniture
Receivables
Payables
Borrowings

Additional information:
(i) Interest on Borrowings to be accrued for at 5% per annum.
(ii) Bad debts of N12,600 are to be written off while 5% allowance is to be made on the net receivables at 31 December, 2013.
(iii) Depreciation is to be charged on the non-current assets at the rate of 10% per annum.

You are required to prepare:

a. Receivables control account (2 Marks)
b. Payables control account (2 Marks)
c. The opening capital (2 Marks)
d. Statement of Profit or Loss for the year ended 31 December 2013 (8 Marks)
e. Statement of Financial Position as at 31 December 2013 (6 Marks)

Answer

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Tags: Bad Debts, Control Accounts, Depreciation, Financial Position, Receivables and Payables, Single entry system, Statement of Profit or Loss
Level: Level 1

FA – May 2024 – L1 – SA – Q10 – Financial Statements Preparation

Describes the link between the statement of financial position and the statement of profit or loss.

Question

Which of the following correctly explains the links between the statement of financial position and the statement of profit or loss?

A. The statement of profit or loss shows the financial position of a business at a given point in time, while the statement of financial position shows the profit or loss for a period of time.
B. The statement of financial position affects the statement of profit or loss, by adding to the owner’s capital.
C. The statement of profit or loss affects the statement of financial position, by either adding to or reducing the owner’s capital.
D. The statement of profit or loss affects the statement of financial position, by adding to and reducing the owner’s capital.
E. The statement of financial position affects the statement of profit or loss, by reducing the owner’s capital.

Answer

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Tags: Accounting Linkages, Statement of Financial Position, Statement of Profit or Loss
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2024

FA – Mar/July 2020 – L1 – SB – Q1a – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Preparing the statement of profit or loss and financial position based on extracted balances.

Question

The following balances were extracted from the books of Walling Enterprises as at October 31, 2019:

Item	N’000
Capital at November 1, 2018	90,428
Purchases	776,400
Revenue	1,045,800
Salaries and wages	66,880
Rent and rates	28,004
Receivables	144,600
Bad debts	3,768
Drawings	19,004
Allowances for receivables	7,404
Bank	5,632
Payables	68,616
Cash	668
Inventories at November 1, 2018	164,218
Motorcycle at cost	14,400
Accumulated depreciation on motorcycle	4,200
Bank interest received	1,756
Commission received	5,370

Additional Information:

(i) Inventory at October 31, 2019 was valued at N198,712,000
(ii) Rent prepaid at October 31, 2019 amounted to N3,200,000
(iii) Depreciation is to be provided on the motorcycle at the rate of 20% on cost per annum
(iv) Accrued salary at October 31, 2019 amounted to N6,024,000
(v) Commission received in advance is N800,000
(vi) Additional amount of irrecoverable debts of N2,840,000 is to be written off
(vii) Bank interest of N100,000 has fallen due but is yet to be received
(viii) Allowances for receivables are to be adjusted to 5% of accounts receivables
(ix) Goods taken by the owner for own use and cheque withdrawals amounting to N1,600,000 and N2,400,000 respectively are yet to be recorded.

Required:

Using the extended trial balance, prepare:
a. Statement of profit or loss of Walling Enterprises for the year ended October 31, 2019.
b. Statement of financial position of Walling Enterprises as at October 31, 2019.

Answer

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Tags: Statement of Financial Position, Statement of Profit or Loss, Trial Balance
Level: Level 1

FR – Nov 2015 – L2 – Q2 – Presentation of Financial Statements (IAS 1)

Prepare a statement of profit or loss and other comprehensive income for Well-Being Plc.

Question

The following trial balance has been extracted from the books of Well-Being Plc as at March 31, 2014:

	N’000	N’000
Land at cost	360
Building at cost	750
Equipment at cost	588
Vehicles at cost	852
Goodwill	900
Accumulated depreciation:
– Buildings		270
– Equipment		228
– Vehicles		396
Inventory at April 1, 2013	321
Trade receivables and payables	549	351
Allowance for receivables		24
Bank balances		171
Current taxation		18
Ordinary shares of N1 each		600
Retained earnings at April 1, 2013		1,509
Revenue		4,296
Purchases	1,464
Directors’ fees	450
Wages and salaries	828
General distribution costs	303
General administrative expenses	558
Dividend paid	60
Rent received		90
Disposal of vehicle		30
Total	7,983	7,983

Additional information:

The company’s non-depreciable land was valued at ₦900,000 on March 31, 2014, and this valuation is to be incorporated into the accounts.
Depreciation policy:
- Building: 4% p.a. (straight line)
- Equipment: 40% p.a. (reducing balance)
- Vehicles: 25% p.a. (straight line) In all cases, a full year’s depreciation is charged in the year of disposal.
On February 1, 2014, a vehicle used entirely for administrative purposes was sold for ₦30,000 (cost ₦132,000). No other entries were made.
Depreciation is apportioned as follows:
- Buildings: 50% distribution, 50% administrative
- Equipment: 25% distribution, 75% administrative
- Vehicles: 70% distribution, 30% administrative
Inventory at March 31, 2014, is valued at ₦357,000.
Trade receivables include a debt of ₦24,000 to be written off. The allowance for receivables is to be adjusted to 4% of receivables after the write-off.
Current tax for the year ended March 31, 2013, was over-estimated by ₦18,000. Current tax for 2014 is estimated at ₦90,000.
One-quarter of wages and salaries was paid to distribution staff and the remaining three-quarters to administrative staff.
General administrative expenses include bank overdraft interest of ₦27,000.

Required:
Prepare a statement of profit or loss and other comprehensive income for the year ended March 31, 2014.

Answer

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Tags: Administrative Expenses, Depreciation, Inventory, Statement of Profit or Loss
Level: Level 2

Topic: Presentation of Financial Statements (IAS 1)
Series: NOV 2015

FA – May 2013 – L1 – SB – Q3 – Financial Statements Preparation

This question asks for the preparation of Mr. Pamona’s Statement of Profit or Loss and Statement of Financial Position following a theft in his shop.

Question

i. Net assets on 1 January 2012:

Furniture and fittings:
Cost: ₦900,000
Accumulated depreciation: ₦(400,000)
Carrying value: ₦500,000
Inventories: ₦2,700,000
Trade receivables: ₦430,000
Prepayments (rates): ₦30,000
Cash in bank: ₦2,140,000
Cash float in till: ₦30,000
Trade payables: ₦1,650,000
Accrued electricity: ₦40,000

ii. Bank statements for nine months from 1 January 2012 show the following:
Receipts:

Cash and cheques lodged: ₦20,060,000
Investment income: ₦182,000
Total: ₦20,242,000

Payments:

Trade payables: ₦17,850,000
Rent (1 January – 31 December): ₦1,200,000
Electricity: ₦155,000
Insurance – theft: ₦45,000
Insurance – life: ₦107,000
Telephone: ₦83,000
Total: ₦19,440,000

iii. The following were paid in cash from the till:

Trade payables: ₦2,400,000
Drawings (per month): ₦295,000

iv. Mr. Pamona’s gross profit margin on sales has averaged 20% in recent years.

v. The furniture and fittings are now estimated to be worth only ₦200,000.

vi. A cheque for ₦52,000 in respect of the telephone bill for the quarter ended 30 September 2012 was not shown in the bank statements until 3 October 2012.

vii. Rates for the period 1 April to 1 October, 2012, amounting to ₦75,000 were still outstanding.

viii. Trade receivables and payables were ₦270,000 and ₦1,900,000 respectively on 30 September 2012.

You are required to prepare Mr. Pamona’s:
a. Statement of Profit or Loss for the nine-month period ended 30 September 2012. (10 Marks)
b. Statement of Financial Position as at that date. (5 Marks)

Answer

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Tags: Depreciation, Insurance Claims, Statement of Financial Position, Statement of Profit or Loss, Theft
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2013

FR – May 2020 – L2 – Q3a – Preparation of Statement of Profit or Loss

Prepare the statement of profit or loss for Badu Trading Ltd for the year ended 31 May 2020.

Question

Answer

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Tags: Final Accounts, Financial Reporting, Statement of Profit or Loss
Level: Level 2

Topic: Preparation of Financial Statements
Series: MAY 2020

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

Question

Answer

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Tags: Accrual Accounting, Rent Expense, Statement of Profit or Loss
Level: Level 1

Topic: Bases of Accounting: Accrual vs. Cash
Series: NOV 2015

FA – Nov 2015 – L1 – SB – Q1 – Financial Statements Preparation

Prepare financial statements for a company, including income and balance sheet, with adjustments for accruals and depreciation.

Question

The following balances remained in the books of Lagbaja Plc at December 31, 2014 after determining the gross profit:

Item	N’000
Share capital, authorised and issued	200,000
Cash at bank and in hand	500
Inventory at December 31, 2014	61,200
Trade receivables	18,005
Trade payables	15,009
Gross profit at December 31, 2014	128,942
Retained earnings	25,000
Salaries & Wages	28,430
Prepayments	600
Bad debts	500
Accrued expenses	526
Director’s account (credit)	2,500
Finance cost on loan note	600
Sundry expenses	4,100
Rates & insurance	1,520
6% Loan notes	20,000
Lighting & cooling	1,310
Postage, telephone and telegrams	800
Motor vehicle (cost N25 million)	15,000
Office fittings and equipment	42,350
Profit at January 1, 2014	22,300
Land and buildings at cost	239,362

The following additional information is relevant:

Office fittings and equipment are to be depreciated at 15% of cost, and Motor vehicles at 20% of cost.
Provisions are to be made for:
- Directors’ Fees N6,000,000
- Audit Fees N2,500,000
The amount of insurance includes a premium of N600,000 paid in September 2014 to cover the company against fire for the period September 1, 2014, to August 31, 2015.
A bill for N548,000 in respect of electricity consumed up to December 31, 2014, has not been posted to the ledger.

Required: a. Prepare the Statement of profit or loss for the year ended December 31, 2014; (10 Marks)
b. Prepare the Statement of financial position as at December 31, 2014. (10 Marks)

Answer

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Tags: Accruals, Depreciation, Financial Adjustments, Statement of Financial Position, Statement of Profit or Loss
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2015

FR – Nov 2019 – L2 – Q3 – Preparation of Financial Statements

Preparation of statement of profit or loss and statement of financial position for Biggs Ltd as at 31 December 2018.

Question

Land: infinite life
Buildings: 50 years
Plant and equipment: 5 years

v) The details of property, plant, and equipment are as follows:

Answer

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Tags: Depreciation, Financial Statements, Revenue, Statement of Financial Position, Statement of Profit or Loss, Trial Balance
Level: Level 2

Topic: Preparation of Financial Statements
Series: NOV 2019

FR – July 2023 – L2 – Q3 – Preparation of Financial Statements for Beposo Ltd

Preparation of financial statements (profit or loss, changes in equity, and financial position) for Beposo Ltd for the year ended 31 December 2021.

Question

Beposo Ltd is an agro-processing company, whose head office is in the Greater Accra region of Ghana. The trial balance of the company for the year ended 31 December 2021 is as follows:

Additional Information:

ii) Non-current assets consist of the following classes of assets:

Depreciation for 2021 has not been accounted for in the trial balance. The company charges depreciation to cost of sales. Motor vehicles, machinery, and equipment are depreciated over five years.

After 31 December 2021, the Board of Directors proposed a dividend of GH¢0.80 per share in respect of the year ended 31 December 2021. The dividend has not yet been approved by shareholders.

Required:

Answer

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Tags: Bonus Shares, Depreciation, Financial Statements, Revaluation, Statement of Changes in Equity, Statement of Financial Position, Statement of Profit or Loss, Taxation
Level: Level 2

Topic: Preparation of Financial Statements
Series: JULY 2023

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

Question

Mr. Ken Stevenson keeps single entry books of account. He had the following balances on 1 January, 2013:

N
Inventory
Payables
Prepaid insurance
Bank overdraft
Furniture
Motor vehicles
Receivables
Borrowings

The following information is extracted from his cash book in respect of the year ended 31 December 2013:

DR N	CR N
Revenue	279,500
Receipt from trade receivables	536,400







815,900	815,900

He had the following balances on 31 December 2013:

N
Motor vehicles
Inventory
Furniture
Receivables
Payables
Borrowings

You are required to prepare:

Answer

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Tags: Bad Debts, Control Accounts, Depreciation, Financial Position, Receivables and Payables, Single entry system, Statement of Profit or Loss
Level: Level 1

FA – May 2024 – L1 – SA – Q10 – Financial Statements Preparation

Describes the link between the statement of financial position and the statement of profit or loss.

Question

Which of the following correctly explains the links between the statement of financial position and the statement of profit or loss?

Answer

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Tags: Accounting Linkages, Statement of Financial Position, Statement of Profit or Loss
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2024

FA – Mar/July 2020 – L1 – SB – Q1a – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Preparing the statement of profit or loss and financial position based on extracted balances.

Question

The following balances were extracted from the books of Walling Enterprises as at October 31, 2019:

Item	N’000
Capital at November 1, 2018	90,428
Purchases	776,400
Revenue	1,045,800
Salaries and wages	66,880
Rent and rates	28,004
Receivables	144,600
Bad debts	3,768
Drawings	19,004
Allowances for receivables	7,404
Bank	5,632
Payables	68,616
Cash	668
Inventories at November 1, 2018	164,218
Motorcycle at cost	14,400
Accumulated depreciation on motorcycle	4,200
Bank interest received	1,756
Commission received	5,370

Additional Information:

Required:

Answer

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Tags: Statement of Financial Position, Statement of Profit or Loss, Trial Balance
Level: Level 1

Question Tag: Statement of Profit or Loss

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FR – Nov 2015 – L2 – Q2 – Presentation of Financial Statements (IAS 1)

Prepare a statement of profit or loss and other comprehensive income for Well-Being Plc.

You're reporting an error for "FR – Nov 2015 – L2 – Q2 – Presentation of Financial Statements (IAS 1)"

FA – May 2013 – L1 – SB – Q3 – Financial Statements Preparation

This question asks for the preparation of Mr. Pamona’s Statement of Profit or Loss and Statement of Financial Position following a theft in his shop.

You're reporting an error for "FA – May 2013 – L1 – SB – Q3 – Financial Statements Preparation"

FR – May 2020 – L2 – Q3a – Preparation of Statement of Profit or Loss

Prepare the statement of profit or loss for Badu Trading Ltd for the year ended 31 May 2020.

You're reporting an error for "FR – May 2020 – L2 – Q3a – Preparation of Statement of Profit or Loss"

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2015 – L1 – SB – Q1 – Financial Statements Preparation

Prepare financial statements for a company, including income and balance sheet, with adjustments for accruals and depreciation.

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q1 – Financial Statements Preparation"

FR – Nov 2019 – L2 – Q3 – Preparation of Financial Statements

Preparation of statement of profit or loss and statement of financial position for Biggs Ltd as at 31 December 2018.

You're reporting an error for "FR – Nov 2019 – L2 – Q3 – Preparation of Financial Statements"

FR – July 2023 – L2 – Q3 – Preparation of Financial Statements for Beposo Ltd

Preparation of financial statements (profit or loss, changes in equity, and financial position) for Beposo Ltd for the year ended 31 December 2021.

Required:

You're reporting an error for "FR – July 2023 – L2 – Q3 – Preparation of Financial Statements for Beposo Ltd"

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

You're reporting an error for "FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2024 – L1 – SA – Q10 – Financial Statements Preparation

Describes the link between the statement of financial position and the statement of profit or loss.

You're reporting an error for "FA – May 2024 – L1 – SA – Q10 – Financial Statements Preparation"

FA – Mar/July 2020 – L1 – SB – Q1a – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Preparing the statement of profit or loss and financial position based on extracted balances.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q1a – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)"

FR – Nov 2015 – L2 – Q2 – Presentation of Financial Statements (IAS 1)

Prepare a statement of profit or loss and other comprehensive income for Well-Being Plc.

You're reporting an error for "FR – Nov 2015 – L2 – Q2 – Presentation of Financial Statements (IAS 1)"

FA – May 2013 – L1 – SB – Q3 – Financial Statements Preparation

This question asks for the preparation of Mr. Pamona’s Statement of Profit or Loss and Statement of Financial Position following a theft in his shop.

You're reporting an error for "FA – May 2013 – L1 – SB – Q3 – Financial Statements Preparation"

FR – May 2020 – L2 – Q3a – Preparation of Statement of Profit or Loss

Prepare the statement of profit or loss for Badu Trading Ltd for the year ended 31 May 2020.

You're reporting an error for "FR – May 2020 – L2 – Q3a – Preparation of Statement of Profit or Loss"

FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash

Calculate rent recognized for profit or loss and financial position as of March 31, 2014.

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q6b – Bases of Accounting: Accrual vs. Cash"

FA – Nov 2015 – L1 – SB – Q1 – Financial Statements Preparation

Prepare financial statements for a company, including income and balance sheet, with adjustments for accruals and depreciation.

You're reporting an error for "FA – Nov 2015 – L1 – SB – Q1 – Financial Statements Preparation"

FR – Nov 2019 – L2 – Q3 – Preparation of Financial Statements

Preparation of statement of profit or loss and statement of financial position for Biggs Ltd as at 31 December 2018.

You're reporting an error for "FR – Nov 2019 – L2 – Q3 – Preparation of Financial Statements"

FR – July 2023 – L2 – Q3 – Preparation of Financial Statements for Beposo Ltd

Preparation of financial statements (profit or loss, changes in equity, and financial position) for Beposo Ltd for the year ended 31 December 2021.

Required:

You're reporting an error for "FR – July 2023 – L2 – Q3 – Preparation of Financial Statements for Beposo Ltd"

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

You're reporting an error for "FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2024 – L1 – SA – Q10 – Financial Statements Preparation

Describes the link between the statement of financial position and the statement of profit or loss.

You're reporting an error for "FA – May 2024 – L1 – SA – Q10 – Financial Statements Preparation"

FA – Mar/July 2020 – L1 – SB – Q1a – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Preparing the statement of profit or loss and financial position based on extracted balances.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q1a – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)"

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