Reference no: EM13341578

Question

Preparation of a statement of profit or loss and comprehensive income and a statement of financial position

The summarised trial balance of Amanah Ltd, a manufacturing company, for the year ended 31 December 2013 is provided below:
DR ($) CR ($)
Sales of goods 4,469,000
Interest income 6,000
Cost of sales 2,987,000
Distribution expenses 86,000
Sales and marketing expenses 820,000
Administration expenses 252,000
Interest expense 44,000
Other borrowing expenses 4,000
Income tax expense 85,000
Cash on hand 4,000
Cash on deposit, at call 100,000
Trade debtors 450,000
Allowance for doubtful debts 14,000
Other debtors 93,000
Raw material inventory 188,000
Finished goods inventory 714,000
Land and buildings 257,000
Accumulated depreciation - buildings 36,000
Plant and equipment 1,260,000
Accumulated depreciation - plant and equipment 564,000
Patents 48,000
Amortisation of patents 3,000
Goodwill 870,000
Bank loans 66,000
Other loans 570,000
Trade creditors 510,000
Provision for employee benefits 93,000
Warranty provision 37,000
Current tax payable 25,000
Deferred tax payable 135,000
Retained earnings, 31 December 2012 326,000
Dividends paid 150,000
Land revaluation surplus 50,000
Share capital 1,508,000
8,412,000 8,412,000 Page 2 of 6

Additional information:
(a) Shares were issued during 2013 for $120,000.
(b) Share capital was $1,358,000 at 31 December 2012.
(c) Of the $150,000 dividend, $30,000 was reinvested as part of a dividend reinvestment plan.
(d) The balance of land revaluation surplus at 31 December 2012 was $15,000 credit.
(e) During the year ended 31 December 2013, land was revalued upward by $50,000, with related tax of $15,000.
(f) $30,000 of bank loans is repayable within 1 year.
(g) $110,000 of other loans is repayable within 1 year.
(h) The provision for employee benefits includes $62,000 payable within 1 year.
(i) The warranty provision is in respect of a 12-month warranty given on certain goods sold.
(j) Amanah Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement.

Required:

Prepare the statement of financial position, statement of profit or loss and other comprehensive income and statement of changes in equity of Amanah Ltd for the year ended 31 December 2013 in accordance with the requirements of AASB101.

In preparing the above statements, use captions that a listed company is likely to use and provide any relevant workings and/or explanations where appropriate. Notes to the accounts are not required.