draft retained earning 4122 (working 1)

adjustments amortised cost accounting

direct cost 125
finance cos -390 A.c b/f interest e interest paA.c c/f
depreciatio -900
impairement -3600 30-Sep-08 4875 390 250 5015
profit on d 500 (fc) (ncl)
depreciatio -3885
finance cos -61 (working 2)
deferred t -203
Office building
adjusted re -4292
office build 20000
Statement of financial position as at 30 sep 2008 accumulate -4000

ASSETS net book va 16000

depreciatio -400
Non-current assets
net book v 15600
office building 11500 recoverabl 12000
Factories 22015 impaired b 3600

Current assets 14700 depreciatio 500

Total assets 48215 Factory

EQUITY AND LIABILITIES disposal p 3500

carrying a -3000
Capital & reserves
profit on d 500
Equity shares 10000
retained earnings -4292 Entry made
cash 3500
Liabilities suspense A/c 3500

Non-current liabilities Correct entry

cash 3500
5% loan notes 5015 profit on disposal 500
deferred tax 1703 accumulate 2000
provision for dismantl 1289 cost a/c 5000

Current liability 34500 correcting entry

suspense A 3500
TOTAL EQUITY AND LIABILITIES 48215 profit on disposal 500
accumulat 2000
Cost a/c 5000
Depreciation on factories

Factories c 35000
accumulate -9100

net book va 25900

depreciatio -3885

net book va 22015

(sofp)
(working 3)

Enviromental provision

Un-winding of discount

provision f 1228
cost of capi 5%

finance cos 61

finance cos 61
provision for dismantl 61

provision a 1289
(sofp)ncl
Deferred tax

Opening ba 1500
closing bal 1703

deferred t 203

Carrying vatax base temporary difference

33515 25000 8515

statement of profit and loss for the year ended 30 june 2008 (working 1)

revenue 45900 Total expected profit or loss of contract

cost of sales -23200
Total contr 9000
gross profit 22700 total estim -5000

operating expenses -14532 total profit 4000

investment income 120
profit & loss extract
profit before interest 8288
interest expense -2012 revenue re 7200
less: revenue rec -4500
profit before tax 6276
tax expense -1470 revenue for 2700
less : cost incurr 4000
profit after tax 4806 cost incurr -2500

cost incurr 1500

statement of changes in equity as at 30 june 2008 profit for 1200

ordinary shshare pre equity opt retained e total sofp extract

balance as 12200 0 180 35400 47780 revenue re 7200

prior perio 0 0 0 -1600 less : cost incurr -4000

adjusted b 12200 0 180.1 33800 47780.1 contract as 3200

right issue 1500 1800 3300
total comprehensive income 4806 4806 (working 2)
ordinary di 0 0 0 0 0
transfer future valudiscount fapresent value

balance as 13700 1800 180.1 38606.41 55886.51 1012 0.9091 920

un-winding of discount

finance cos 46
provision 46

provision 966
profit and loss & cl

Cost of sales

as per TB 21700
cost of con 1500
adjusted co 23200 correcting entry
(working 3)

current yea 2100

over-provi -130
deferred ta -500

income tax 1470

(working 4)

Present value of liability cashflows

future valudiscount fapresent value

300 0.926 278

5300 0.857 4542

present valu 4820

initial con 5000

equity opt 180

unwinding of discount

A.c b/f interest e interest paA.c c/f

4820 386 300 4905

(fc)

(working 5)

cost (exclus 29440

add : borrowing 1920

capitalised 31360

interest expense 640

depreciati 392

(working 6)

Opening re 1600
profit and 900
trade receivables 2500

(working 7)
correcting entry
suspense A 3300
share capital 1500
share premium 1800
Draft profit before i 30000 (working 1)

adjustmeninterest on -3023 present value of liability cashflows

depreciati -3200
depreciatio -6600 future valudiscount fapresent value
bad debts -250
income tax -2600 2400 0.93 2232
2400 0.86 2064
adjusted profit after 14327 42400 0.79 33496

statement of financial position as at 31 march 2006 present valu 37792

initial con 40000
ASSETS
equity opt 2208
Non-current assets (scoie)
Un-winding of discount
Property 64600
Plant & equipment 37400 A.c B/f interest e Interest pa

Current assets 31-Mar-06 37792 3023 2400

trade receivables 27300 (working 2)

other current assets 9300
Property Plant
TOTAL ASSETS 138600
Property as 60000
EQUITY AND LIABILTIIES depreciatio -1500

Capital & reserves property N 58500

revalued 66300
ordinary share capital 50000
retained earnings 17377 revaluation 7800
revaluation reserve 6240
equity option 2208 revaluation 1560
deferred tax liability 1560
Liabiltiies
depreciatio 1700
Non-current liabilities
Net book v 64600
Deferred tax 3960 sofp
6% convertible loan n 38415

Current liabiltiies

Current tax 2700

Other current liabiltit 17700
TOTAL EQUITY AND LIABILITIES 138600

Diluted earning per share

profit after 14327

incremental 1920

issued shar 50000

additional 8000

diluted ear 0.28 cents

 (working 3)

bility cashflows Opening re 450

profit and 250
present value recievables 700

(working 4)

current yea 2700 (cl)

underprovi 700
deferred ta -800

income tax 2600

deferred tax liability

opening ba 3200
revaluation 1560
A.c C/f
balancing f 800
38415
(ncl) closing bal 3960

plant cost 72100

accumulated -28100

net book va 44000

depreciatio -6600
 (working 1)
statement of profit or loss & other comprehensive income for the year
ended 30 june 2005 research expense 3000
Development expense c 1600
revenue 113500
cost of sales -97700 capitalised developme 3200

gross profit 15800 as the amortisation on capitalised development co

distribution cost -2800 the project has not yet available for use. The proje
investment income 300
administration expen -6300 (working 2)

profit before interest 7000 Property

interest expense -1560 property va 28500
less : depreciatio -1900
profit before tax 5440
tax expense -2000 net book va 26600
revalued 29000
profit after tax 3440
revaluation 2400
add: other comprehensive income
property 2400
revaluation gain 2400 revaluation reserve 2400

total comprehensive 5840 Plant & equipment

Statement of changes in equity as at 30 june 2005 plant & eq 27100

accumulated -9100
ordinary shother comprevaluatio retained e total
net book va 18000
balance as 20000 2300 3000 6200 31500 depreciatio 2700
market pric 10000 7000 17000
bonus issue
total comprehensive income 2400 3440 5840
dividends paid -4000 -4000

balance as 30000 9300 5400 5640 50340

 (working 3)

(cos) loan amortised cost acc

(cos)
A.c b/f interest e interest paA.c c/f

19500 1560 1000 20060

on capitalised development cost w(FC) (NCL)
et available for use. The project has just been completed

loan 500
admin expense 500
(ad)

(cos) (working 4)

current tax 1200

deferred t 800

income tax 2000

(working 5)

shares issued

cash 17000
share capital 10000
share premium 7000

dividends
(cos)
retained e 4000
cash 4000
retained earnings as 33100

interest expense -1600

depreciation on plant -15400
finance cost on envir -320
finance cost on leased -570
depreciation on right -1600
investment income 1000
income tax expense -3800

adjusted retained ear 10810

statement of financial position as at 31 march 2005

ASSETS EQUITY & LIABILTIIES

Non-Current assets Capital & reserves

right of use plant 6400 Ordinary share capita 35000

plant & equipment 42600 retained earnings 10810
49000 45810
Current assets
Liabilities
investment through pr 6500
trade recievable 20500 Non-current liabilties
inventory 11700
38700 deferred tax 3000
enviromental provisi 4320
Total Assets 87700 Lease liability 3747
loan notes 15000
26067

Current liabilities
current tax 3500
trade payables 9400
Lease liability 1023
bank 1900

15823

TOTAL EQUITY AND LIABILITIES 87700

(working 1) (working 3)

entry made right of us 8000

lease obligation 8000
suspense A/ 5800
cash 5800 lease oblig 2300
should made cash 2300

loan 5000 Lease amortisation schedule

interest ex 1600
cash 5800 date rentals finance cosdec in obli balance in obligation

1-Apr-04 (fc) 5700

Correcting entry ### 1500 570 930 4770
### 1500 477 1023 3747
loan 5000 (cl) (ncl)
interest ex 1600
suspense A/c 5800 depreciation on right of use asset

right of us 8000
(working 2) lease-term 5

un-winding of discount depreciatio 1600

finance cost 320 Net book v 6400 (sofp)

provision for dismantli 320 (working 4)

depreciation on property plant & equipment investment 6000

investment 6500 (sofP)
plant cost 77000
accumulated -19000 increase in 500
depreciatio -15400 (cos)
(working 5)
net book va 42600 current tax 3500 (sofP)
deferred t 300

income tax 3800

deferred tax liabiltty

opening ba 2700
closing bal 3000 (sofP)

deferred t 300
statement of profit/loss & other comprehensive income (working 1)
for the year ended 31 march 2004
Plant & equipment
revenue 490000
cost of sales -304600 Plant & eq 155500
accumulated -43500
gross profit 185400
operating cost -70300 net book va 112000
depreciati -14000 (cos)
profit before interest 115100
interest expense -4576 net book v 98000
(sofp)
profit before tax 110524
income tax expense -34900 (working 2)
present value of liability cashflows
profit after tax 75624
future valudiscount fapresent value
statement of financial position as at 31 march 2004
2500 0.93 2325
ASSETS 2500 0.86 2150
52500 0.79 41475
Non-current assets
present valu 45950
plant & equipment 98000 initial con 50000

current assets equity opt 4050

trade recievables 103000 un-winding of discount

inventory 96000
A.c b/f interest e interest pa
TOTAL ASSETS 297000
### 45950 3676 2500
EQUITY AND LIABILTIIES fc

Capital & reserves (working 3)

current tax 28000
ordinary share capital 66000 under-prov 3200
share premium 15000 deferred t 3700
retained earnings 90824
equity option 4050 income tax 34900

Liabilities deferred tax liability

opening ba 4600
Non-current liabiltiies closing bal 8300 (ncl)

convertible loan notes 47126 deferred t 3700

deferred tax 8300
Current liabilities
current tax 28000
trade payables 32200
bank O/D 5500

TOTAL EQUITY AND LIABILTIIES 297000

bility cashflows

present value

A.c c/f

47126
ncl
 retained earnings as 53250 (working 1)

adjustments total expected profit or loss of contrac

contract profit 2000
depreciation on build -2400 total contr 25000
finance cost -2930 total estim -20000
depreciation on right -7000 expected pr 5000
reduction in operatin 400
repairing the damage -250 progress of completion of contract in %
income tax expense -1400
finance cost on loan -4000 progress o 40%

adjusted retained ear 37670 profit or loss extract

statement of financial position as at 30 sep 2003 revenue re 10000

cost incurr -8000
ASSETS profit 2000

Non-current assets sofp extract

Land & building 52000 revenue re 10000

right of use 21000 amount inv -7000

Current assets contract as 3000

(sofp)
Trade recievables 38500
inventory 56600 (working 2)
contract asset 3000 Land & building
Land
TOTAL ASSETS 171100
cost 12000
EQUITY AND LIABILITIES accumulate 0

Capital & reserves net book va 12000

revaluation
ordinary share capital 27000 revalued 16000
retained earnings 37670 revalued b 4000
revaluation reserve 3300
Liabilities depreciati 0

Non-current liabiltiies net book va 16000

deferred tax 7100 deferred tax on revaluation

Lease liability 16133 revaluation
loan notes 44000 deferred tax liability

Current liabiltiies Leased plant

Current tax 3400 at 1 october 2001
trade payables 18300 right of us
Lease liabiltiy 6897 lease obligation
bank o/d 7300
Lease-amortisation-schedule
TOTAL EQUITY AND LIABILITIES 171100
date rentals finance cos

1-Oct-01
30-Sep-02 9200 3500
30-Sep-03 9200 2930
30-Sep-04 9200 2303

depreciation on right of use

right of use
accumulate
depreciatio

net book va
 (working 3)

ected profit or loss of contract as the self-insurance provision is not allowed by

the IAS 37 "provisons,contingent assets & contingent liabilties"
therefore this provision which accountant has already provided should
be revered back

provision 400
of completion of contract in % operating expenses 400

expenses incurred on restoring the damaged property

operating 250
provision 250

(working 4)

current tax 3400

deferred ta -2000

income tax 1400

deferred tax liability

opening ba 8000
revaluation 1100

balancing f 2000
building Total
closing bal 7100
48000 60000
-10000 -10000 (working 5)

38000 50000 loan amortised cost accounting

38400 54400 A.c b/f interest e interest paA.c c/f

400 4400
40000 4000 0 44000 (ncl)
2400

36000 52000
(sofp)

1100
deferred tax liability 1100
 35000
lease obligation 35000

decrease inbalance of obligation

35000
5700 29300
6270 23030
6897 16133
(cl) (ncl)

35000
-7000
-7000

21000
 (working area)
sales revenue 540000
cost of sales -420600 (w1) (w3)

gross profit 119400 total sales 550000 director `s bonus

sales cons -10000
distribution cost -21500 bonus
administration expen -36300 adjusted sa 540000 provision for bonus

profit before interest 61600 cost of sal 411500 (w4)

finance cost -1200 sales of r -7000 current tax
over-provi
profit before tax 60400 adjusted co 404500 deferred t
tax expense -29200
interest expense on loan income tax
profit after tax 31200 deferred tax liability
loan 10000 opening ba
add : other comprehensive income interest @ 500 closing bal

revaluation gain 7000 as this interest has not yet paid, & will be deferred t
loan carryi 10500
total comprehensive 38200
(w2)

statement of financial position as at 31 march 2003 plant classified as held for sale

ASSETS net book value as at 1 october 2002

Non-current assets plant cost 9000

accumulated -5000
Land & building 44500 depreciation -400
plant & equipment 52800
net book va 3600
Current assets -

plant held for sale 3600 Land & building

trade recievables 42200
inventory 50700 Land building total

TOTAL ASSETS 193800 cost 10000 50000 60000

accumulated depreciat -20000 -20000
EQUITY AND LIABILTIIES
Net book va 10000 30000 40000
Capital & reserves revalued 12000 35000 47000

ordinary share capital 50000 revalued b 2000 5000 7000

retained earnings 42400
revaluation surplus 7000 Depreciation on building
Liabiltiies depreciati 2500

Non-current liabilties net book va 44500

deferred tax 9400 depreciation on Plant & equipment

loan on inventory 10500
CV as at 1 66000
Current liabiltiies depreciatio -13200

Bank 6800 net book v 52800

current tax 27200
provision for bonus 5400
trade payables 35100

TOTAL EQUITY AND LIABILTIIES 193800

director `s bonus

5400
provision for bonus 5400

27200 (cl)
-1200
3200

29200
deferred tax liability
6200
9400

3200
revenue 211900 (working area)
cost of sales -144300
(w1) (w4)
gross profit 67600 total selli 10000
distribution cost -12500 selling pric 2400 investment 17000
administration expen -18000 investment 15700
sale satisfi 7600
investment income -900 sales satisf 800 decrease in 1300

profit before interest 36200 revenue to 1600 (w5)

finance cost -1920
revenue 1600 current yea 7400
profit before tax 34280 deferred income 1600 underprovi 1100
tax expense -8300 deferred ta -200
(w2)
profit after tax 25980 income tax 8300
loan amortised costing deferred tax liability
add : other comprehensive income opening ba
A.c b/f interest e interest paA.c c/f closing bal
revaluation gain 0
24000 1920 1500 24420 deferred ta
total comprehensive 25980 (fc) (ncl)

statement of financial position as at 30 sep 2002 issue cost

loan 1000
ASSETS admin exp 1000

Non-current assets (w3) Plant & equipment

Plant & equipment 42500 CV of plan 50000

equity financial asset 15700 depreciatio -7500

Current asset CV as at 3 42500

inventory 24800
trade recievable 28500
bank 2900

Total assets 114400

EQUITY & LIABILITIES

Capital & reserves

ordinary share capital 60000

retained earnings 13280
Liabilities

Non-current liabilities

deferred tax 1000

6% loan notes 24420
deferred income 800
Current liabilities

trade payable 6700

current tax 7400
deferred income 800

TOTAL EQUITY AND LIABIILITIES 114400

deferred tax liability
1200
1000

200
fresco`s statement of profit OR loss & other comprehensive income for the year ended 31-march-2002
(working area)
revenue 350000
cost of sal -311000 (w1) (socie) (w3)

gross profi 39000 suspense A/ 13500 opening re 1000

share capital 9000 profit and 3000
distributio -16100 share premium 4500 recievables
administra -28700
(w2) (w4)
Leasehold property
profit befo -5800 Cv of leased 32000 current tax -2400
revalued a 36000 underprovi 800
finance cos -2600 deferred ta -200
revalued by 4000
loss before -8400 income tax -1800
tax refund 1800 depreciation on lease-Hold property
(w5)
loss after t -6600 depreciation 4500
investment 6000
add : other comprehensive income excess depreciation 500 investment 7200
annual transfer of excess depreciation
revaluation 4000 revaluation 500 increase in 1200
retained earnings 500
total comp -2600
Lease-agreement
(w)
cost of sales right of use 25000
lease-obligation 25000
as per trial balance 298700
depreciation on lease 4500 Lease-amortisation-schedule
depreciation on right 5000
depreciation on plan 2800 Date Rentals finance cosdecrease inbalance in obligation

adjusted cost of sales 311000 1-Apr-01 fc 23000

31-Mar-02 6000 2300 3700 19300
31-Mar-03 6000 1930 4070 15230
cl ncl
depreciation on right o 5000

Plant & equipment (other than leased)

CV as at 1 a 14000
depreciatio 2800

statement of changes in equity as at 31 march 2002

ordinary shshare pre revaluationretained e total

balance as 45000 5000 0 5100 55100
prior period error -1000 -1000

adjusted b 45000 5000 0 4100 54100

right issue 9000 4500 0 0 13500

bonus issu 0 0 0 0
total comprehensive income 4000 -6600 -2600
dividends 0 0 0 0 0
transfer
-500 500
balance as 54000 9500 3500 -2000 65000
 4000

balance in obligation
Keystone`s statement of profit or loss & other comprehensive income for the year ended 30 sep 2001

revenue 377600 working area

cost of sales -258100 (w1) (w2)

gross profit 119500 direct mate 3000 Property

distribution cost -14200 direct labo 4000
administrative expen -22400 factory ov 3000 Cv as at 1 40000
revalued 48000
investment income 800 total capit 10000
(cos) revalued b 8000
profit before interest 83700 revised pu 61000
finance cost -350 revised pr 120000 deferred tax
revised fa 77000
profit before tax 83350 revaluation 2400
tax expense -26100 depreciati 1000 deferred tax liability

profit after tax 57250 net book va 9000 depreciation on property

(sofp)
add : other comprehensive income other plant & equipment revalued 48000
revaluation gain 5600 remaining u 16
CV as at 1 30000
total comprehensive 62850 depreciati 6000 depreciatio 3000
(cos) (cos)
CV as at 3 24000 NBV as at 45000
(sofp) (sofp)
keystone`s statement of financial position as at 30 sep 2001

ASSETS

Non-current assets

property 45000
plant & equipment 33000

Current assets

trade recievables 31150

inventory 56600

TOTAL ASSETS 165750

EQUITY AND LIABILTIES

Capital & reserves

ordinary share capital 50000

retained earnings 48850
revaluation reserve 5600

Liabilities

Non-current liabiltiies

Deferred tax 6900

Current liabilities

Bank O/d 2300

trade payable 27800
current tax payable 24300

TOTAL EQUITY AND LIABILITIES 165750

 (w3)
debit credit
retained e 24000
administration expen 24000

(w4)
cost of sales

opening in 46700
purchases 61000
closing inv -56600

2400 cost of sal 51100

tion on property depreciatio 7000

depreciati 3000
direct labo 120000
factory ov 77000

adjusted co 258100

(w5)
current yea 24300
deferred t 1800

income tax 26100

deferred tax liability

opening ba 2700
revaluation 2400

balancing f -1800

closing bal 6900

Pricewell`s statement of profit/loss & other comprehensive income for the year ended 31 march 2009

Revenue 325600 (working area)

cost of sales -255900
(w1)
gross profit 69700 Leasehold property Right of use plant
distribution cost -19500
administrative expen -27500 Leasehold p 25200 Lease amortisation schedule
depreciatio -1800
profit before interest 22700 Date rentals finance cos
finance cost -1248 CV as at 3 23400
Revalued 24900 1-Apr-07
profit before tax 21452 31-Mar-08 6000 1600
tax expense -2400 revalued b 1500 31-Mar-09 6000 1248
31-Mar-10 6000 868
profit after tax 19052 leasehold 1500
profit and loss 1500
add: other comprehensive income Right of us 5000
Owned Plant
revaluation gain 0 CV Of owned 34000 NBV as at 10000
depreciatio 8500 (cos)
total comprehensive 19052 (w2)
NBV as at 25500
(sofp) total contract expected profit/loss

Statement of financial position as at 31 march 2009 total contra 50000

total estima -30000
ASSETS
total profit 20000
Non-current assets
stages of completion
Right of use 10000
plant & equipment 25500 work certifi 22000
lease-hold property 24900 total contra 50000
contract asset 16300
Specialist plant for co 6000 stage of co 0.44
Current assets
profit or loss extract
trade recievables 33100
bank 5500 revenue reco 22000
inventory 28200 cost incurre -14000
149500
profit 8000
EQUITY AND LIABILITIES
sofp extract
Capital & reserves
revenue rec 22000
ordinary share capital 40000 amount invo -5700
retained earnings 55152
contract ass 16300
Liabiltiies

Non-current liabilities

deferred tax 5600

lease obligation 5716

Current liabilities
trade payable 33400
current tax 4500
lease obligation 5132

TOTAL EQUITY AND LIABILTIIES 149500

 (w3)

total reve 310000

amount remi -6400

adjusted r 303600
dec in obli balance in obligation

20000 (w4)
4400 15600
4752 10848 current yea 4500
5132 5716 under-prov 700
(cl) (ncl) deferred ta -2800

income tax 2400

deferred tax liability

opening ba 8400
closing bal 5600

ed profit/loss deferred ta 2800

Cost of sales

as per TB 234500
depreciati 1800
revaluatio -1500
depreciati 8500
depreciatio 5000
contract co 14000
amount remi -6400

adjusted co 255900