80.2K

Verified Solution

Link Copied!

	$'000	$'000
Equity shares of 50 cents each		97,000
Share premium		5,000
Retained earnings at 1 April 20X3		5,100
Property (20 years) at cost	40,000
Plant and equipment at cost	250,000
Accumulated amortisation of property at 1 April 20X3		16,000
Accumulated depreciation of plant and equipment at 1 April 20X3		33,500
Inventory at 31 March 20X4	25,200
Trade receivables	28,500
Bank		1,400
Trade payables		27,300
Revenue		539,500
Cost of sales	337,800
Distribution costs	16,100
Administrative expenses	26,900
Bank interest	300
	724,800	724,800

The following notes are relevant:

(i) Revenue includes an amount of $20 million for cash sales made through Xtol's retail outlets during the year on behalf of Francais. Xtol, acting as agent, is entitled to a commission of 10% of the selling price of these goods.

By 31 March 20X4, Xtol had remitted to Francais $15 million (of the $20 million sales) and recorded this amount in cost of sales.

(ii) Plant and equipment is depreciated at 12% per annum on the reducing balance basis. All amortisation and depreciation of non-current assets is charged to cost of sales.

(iii) A provision of $28 million is required for current tax for the year ended 31 March 20X4.

(iv) At 3 Apr 20X4, a customer of business declare bankrupt, this client own the entity $15,000.

Required

(a) Prepare the statement of profit or loss for Xtol for the year ended 31 March 20X4 (8 marks)

(b) Prepare the statement of financial position for Xtol for the year ended 31 March 20X4 (12 marks)

Answer & Explanation Solved by verified expert

See Answer