Question

In: Accounting

The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 GHS'000 Sales (a)...

The following trial balance relates to Golden Ltd at 30th September 2018
GHS'000 GHS'000
Sales (a) 760,000
Material purchases (b) 128,000
Production labour (b) 248,000
Factory overheads (b) 160,000
Distribution costs 28,400
Administrative expenses (c) 92,800
Finance costs 700
Investment income 1,600
Leased property - at cost (b) 100,000
Plant and equipment - at cost (b) 89,000
Accumulated amortisation/depreciation at 1/10/2017
- leased property 20,000
- plant and equipment 29,000
Equity investments (e) 36,000
Inventory at 1/10/17 93,400
Trade receivables 67,100
Trade payables 55,600
Bank 4,600
Stated capital (GHS0.2) 100,000
Income surplus (1/10/2017) 67,200
Deferred tax (f) 5,400
1,043,400 1,043,400
The following notes are relevant:
(a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their selling
price was GHS4.8m 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 GHS6m and the labour cost GHS8m. 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 GHS96m, 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 GHS2.40 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 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.
(f) A provision for income tax for the year ended 30th September 2018 of GHS48.6m is required. At 30th
September 2018, the tax base of Golden Ltd's net assets was GHS30m 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 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.

Solutions

Expert Solution


Related Solutions

The following trial balance relates to Rapcap plc at 31 December 2019: £000 £000 Land and...
The following trial balance relates to Rapcap plc at 31 December 2019: £000 £000 Land and Building – at cost 1/1/ 2019 350,000 Accumulated depreciation of building at 1/1/ 2019 50,000 Plant at cost 108,600 Accumulated depreciation of plant at 1/1/ 2019 24,600 Investment property – at valuation 1/1/2019 30,000 Investment income 1,200 Purchases 158,450 Distribution costs 26,400 Administrative expenses 27,200 Loan interest paid 3,400 Inventory at 1/1/ 2019 26,550 Corporation tax under-provided for 2018 250 Trade receivables/ trade payables...
The following trial balance relates to Rapcap plc at 31 December 2019: £000 £000 Land and...
The following trial balance relates to Rapcap plc at 31 December 2019: £000 £000 Land and Building – at cost 1/1/ 2019 350,000 Accumulated depreciation of building at 1/1/ 2019 50,000 Plant at cost 108,600 Accumulated depreciation of plant at 1/1/ 2019 24,600 Investment property – at valuation 1/1/2019 30,000 Investment income 1,200 Purchases 158,450 Distribution costs 26,400 Administrative expenses 27,200 Loan interest paid 3,400 Inventory at 1/1/ 2019 26,550 Corporation tax under-provided for 2018 250 Trade receivables/ trade payables...
The following trial balance relates to Atlop Sdn Bhd at 31 March 2020 : RM’000 RM’000...
The following trial balance relates to Atlop Sdn Bhd at 31 March 2020 : RM’000 RM’000 Ordinary share @ RM0.50 per share 70,000 Retained profit at 1 April 2019 11,200 Land and building at cost (land RM100milion) 60,000 (note i) Plant and equipment at cost (note i) 94,500 Accumulated depreciation at 1 April 2019 : - Building 20,000 - Plant and equipment 24,500 Inventories at 31 March 2020 43,700 Trade receivables 42,200 Bank 6,800 Deferred tax (note ii) 6,200 Trade...
Question 1 Trial balance extracts at 30 September 2019 $’000 Land at cost on 30 September...
Question 1 Trial balance extracts at 30 September 2019 $’000 Land at cost on 30 September 2018 50,000 Plant and equipment at cost 76,600 Accumulated depreciation at 30 September 2018 Plant 24,600 Capitalised development expenditure at 30 September 2018 20,000 Non-current assets – tangible: The land was acquired on the 30 September 2018. The company’s policy is to revalue its land at each year end and at 30 September 2019 it was valued at $53 million. On 1 October 2018...
The following information relates to Egoly Ltd for the year ended 30th June 2019: EGOLY LTD...
The following information relates to Egoly Ltd for the year ended 30th June 2019: EGOLY LTD BALANCE SHEET AS AT 30th JUNE 2019 2019 2018 $ $ ASSETS Current Assets    Cash at bank 67,710 59,666    Accounts receivable 252,760 283,290    Inventory 1,107,600 951,400    Prepaid expenses 113,600 35,500 Total current assets 1,541,670 1,329,856 Non-current assets    Equipment 1,263,800 823,600    Accumulated depreciation – equipment (238,560) (143,136) Total non-current assets 1,025,240 680,464 TOTAL ASSETS 2,566,910 2,010,320 LIABILITIES & SHAREHOLDERS...
Balance Sheet For Magnificent Homeware Ltd As At 31 March 2018 2018 2017 2016 $(000) $(000)...
Balance Sheet For Magnificent Homeware Ltd As At 31 March 2018 2018 2017 2016 $(000) $(000) $(000) Current assets Bank - - 1,804 Accounts receivable 5,200 3,250 1,620 Allowance for bad debts (210) (350) (380) Inventory 4,120 2,550 1,850 Total current assets 9,110 5,450 4,894 Non-current assets Plant & equipment 5,480 4,900 4.300 Retail shop Wellington 2,000 - - Total non-current assets 7,480 4,900 4.300 Total assets 16,590 10,350 9,194 Current liabilities Bank overdraft 380 350 - Mortgage 200 100...
The Balance sheet for Pluto Ltd disclosed the following information: Pluto Ltd Balance Sheet (extract) 30th...
The Balance sheet for Pluto Ltd disclosed the following information: Pluto Ltd Balance Sheet (extract) 30th June 2019 Non-current Assets: Plant –At cost: $500,000 Accumulated depreciation-Plant $(150,000) The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus/reserve for the plant of $60,000. The plant has a useful life of 10 years and a zero residual value. On 31st December 2019, it was decided to...
This is the trial balance of Solis Company on September 30. SOLIS COMPANY Trial Balance September...
This is the trial balance of Solis Company on September 30. SOLIS COMPANY Trial Balance September 30, 2014 Debit Credit Cash $ 23,400 Accounts Receivable 6,800 Supplies 4,300 Equipment 10,200 Accounts Payable $ 9,000 Unearned Service Revenue 3,300 Common Stock 19,200 Retained Earnings 13,200 $44,700 $44,700 The October transactions were as follows. Oct. 5 Received $1,360 in cash from customers for accounts receivable due. 10 Billed customers for services performed $5,740. 15 Paid employee salaries $1,200. 17 Performed $640 of...
This is the trial balance of Cullumber Company on September 30. CULLUMBER COMPANY Trial Balance September...
This is the trial balance of Cullumber Company on September 30. CULLUMBER COMPANY Trial Balance September 30, 2022 Debit Credit Cash $ 24,020 Accounts Receivable 7,420 Supplies 4,210 Equipment 10,110 Accounts Payable $ 9,620 Unearned Service Revenue 3,210 Common Stock 19,820 Retained Earnings 13,110 $45,760 $45,760 The October transactions were as follows. Oct. 5 Received $1,380 in cash from customers for accounts receivable due. 10 Billed customers for services performed $5,870. 15 Paid employee salaries $1,030. 17 Performed $550 of...
The following trial balance relates to KWEMPE at 31 March 2016:                                &nbsp
The following trial balance relates to KWEMPE at 31 March 2016:                                                                                                                                                                                            $,000 DR                              $,000 CR Equity shares of 50 Cents each ( note (V) )                                                                                                                                        50,000 CR                                                                                                                                                                                                             Share    Premium 20,000 CR                                                                                                                                                                                                                                   Retained earning 1 April 2015                                                                                                                                       11,200 CR Land & Building - at cost ( Land $10 Million ) (note (ii) )                                 60,000 DR Plant & Equipment - at cost ( note (ii) )                                                         94,500 DR Accumulated depreciation at 1 April 2015: - Building                                                                                                                            20,000 CR...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT