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The SOFP doesn’t balance so I am probably doing something wrong, or a lot of things wrong, your input in pointing out the mistakes will be very appreciated.
Part (a)
17500 R/E draft
(810) Finance cost (wk 1)
(5600) Depriciation for the yr (wk 2)
(800) Tax Expense (wk 3)
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10290 R/E (adjusted)Workings
Wk1
29000 OB
1800 Coupon Interest
2610 Market interest (FC)
29810 C/B (NCL)Finance cost 2610-1800 already deducted= 810
Wk2
35000 CV of Land and Building
12000 Revalution reserve
47000 Revalued amount
(2600) Dep for the yr – 39000/15= 2600
44400 CV at 30 sept 201424000 CV of Plant
(3000) Dep for the yr. RBM 12.5%
21000 CV65400 PP&E (44400+21000)
Wk3
12000 Revalution
10000 TTDTax rate 20%
Dr Tax Expence 2000
Dr Revalution 2400
Cr Deffered tax liability 4400P&L (Finace cost)
2400 current tax provision
2000 Deffered tax
(1100) over provision for CT
(2500) over provsion for DT
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800Statement of financial postion
NCA
65400 PP&E68700 Current Assets
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134100 – Total AssetsEquity
40000 Shares
10290 R/E (part a)
9600 revaluation reserve (12000-2400 tax)NCL
29810 – 6% loan
4400 DTL38400 Current liabilities
2400 Current tax Payable
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134900 – Total equity and liabilities@piggy93 said:
I think the rest are correct except the interest paid (1800) is actually not yet deduct on retained earning else it won’t appear in trial balance.oh, silly mistakes. Thanks for pointing them out. So we add back 1000 issue cost, and subtract 1800 interest. The SOFP balances.
There were just two mistakes, I hope the markers give me atleast 12 marks for this question. 🙂
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I did not like the not under question part b on this question stating ‘the notes to the statement of financial position are not required’. It bugged me out so much that I was there scratching my head as to whether to update the the depreciation upto 30 September 2014 as the summarised trial balance only gave it to 1 October 2013, however, the note says to ignore the notes. I exam panicked and used the old figure, despite knowing it was likely the wrong move. Any thoughts on whether marks will be deducted for this as reading it with more time, it does seem that they are telling you to do that (perhaps to save you time, but demonstrate you understand to put the net figure in the statement?)
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