Reference no: EM133206158
Fleecy Limited is a company that sells a range of thermal and fleece clothing to retailers around the country. The company is listed on the JSE. You have been provided with the draft trial balance at 31 March 20x9, together with some additional information.
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The draft trial balance of Nordic Limited at 31 March 20x9 is as follows: FLEECY LIMITED
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TRIAL BALANCE AT 31 MARCH 20X9
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DR
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CR
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Ordinary share capital
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1 000 000
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Retained earnings
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1 180 000
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Equipment and fittings
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750 000
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Equipment and fittings: accumulated depreciation
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150 000
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Accounts Receivable
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950 000
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Inventory
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2 200 000
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Bank
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330 000
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Borrowings
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900 000
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Accounts Payable
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320 000
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Sales
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12 100 000
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Cost of Sales
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9 600 000
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Packing expense
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300 000
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Road transport costs
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232 000
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Stationery expense
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490 000
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Staff canteen expenses
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213 000
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Cleaning expenses
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110 000
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Depreciation: Equipment and fittings
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75 000
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Salaries
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700 000
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Bad debt
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10 000
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Donations
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50 000
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Profit on the sale of equipment and fittings
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400 000
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Dividends
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40 000
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16 050 000
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16 050 000
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ADDITIONAL INFORMATION:
1. The ordinary share capital consists of 2 000 000 shares of R0.50 par value.
2. The net realisable value of the inventory at the reporting date was estimated at R2 080 000.
3. The borrowings represent a loan of R900 000. Repayable in 3 equal annual installments. The first instalment is due to be paid on 30 September 20x9. The existing loan agreement provides Fleecy Ltd with the option to refinance the first installment for a
further 7 months and the directors exercised the option before the end of the current reporting period.
4. Fleecy Ltd classifies expenses according to their function. The financial director categorizes the functions of the business into 3 areas: SALES, DISTRIBUTION, and ADMINISTRATION.
5. The distribution department specially wraps all items in a protective wrapping before the items are shipped. The goods are transported by an independent road transport entity to the retailers.
6. The administrative department issues stationery, provide refreshments, and are responsible for the cleaning of the head office.
7. The depreciation expense is allocated as follows: R50 000 to distribution and R25 000 to administration.
8. The salaries are allocated R250 000 to distribution and R450 000 to administration.
9. The bad debts are a distribution expense, and the donations are an administration expense.
10. The profit on sale of equipment and fittings relates to equipment used in the administration function.
11. The income tax expense has been correctly calculated at R180 000.
12. The dividend of R40 000 shown on the trial balance represents the final dividend in respect of the year ended 31 March 20x8, declared on 20 April 20x8. A final dividend of R50 000 in respect of the year ended 31 March 20x9 was declared on 15 April 20x9. No interim dividends were declared.
13. There are no components of other comprehensive income.
14. The financial statements have not yet been authorized for issue.
Required:
Prepare the statement of profit or loss and other comprehensive income for Fleecy Ltd for the year ended 31 March 20x9in conformity with IFRS.
Prepare the statement of changes in equity of Fleecy Ltd for the year ended 31 March 20x9 in conformity with IFRS.
Prepare the statement of financial position of Fleecy Ltd at 31 March 20x9in conformity with IFRS