The ABC Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below: Statement of Profit…
2023 · Solved Question with Answer
The ABC Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below:
Statement of Profit and Loss for the year 2022
| Particulars | Amount (Rs) |
|---|---|
| Revenue from operation | 1,100,000 |
| Less: Cost of sales | (700,000) |
| Gross margin | 400,000 |
| Add Other income (including interest received Rs.6,000) | 60,000 |
| Total | 460,000 |
| Less: Distribution expenses | (135,000) |
| Less: Administrative expenses (write-off of goodwill Rs.10,000 and depreciation of Rs.75,000) | (200,000) |
| Operating Profit | 125,000 |
| Less: Finance cost | (25,000) |
| Net profit before tax | 100,000 |
| Less: Provision for tax | (25,000) |
| Net profit after tax | 75,000 |
| Less: Dividend paid | (7,500) |
| Retained Earnings | 67,500 |
Statement of Financial Position of a company for 2021 and 2022
| Assets | 2021 | 2022 |
|---|---|---|
| Non-Current Assets: | ||
| Property, plant and equipment | 400,000 | 500,000 |
| Intangible assets (Goodwill) | 40,000 | 30,000 |
| Investments | 140,000 | 190,000 |
| Total Non-Current Assets | 580,000 | 720,000 |
| Current Assets: | ||
| Inventories/Stock | 20,000 | 50,000 |
| Cash and cash equivalents | 50,000 | 40,000 |
| Account receivables | 40,000 | 60,000 |
| Trade and Other receivables | 20,000 | 30,000 |
| Total Current Assets | 130,000 | 180,000 |
| Fictitious Assets | - | - |
| Total Assets (Total Non-current and Current Assets) | 710,000 | 900,000 |
| Equity: | ||
| Share capital @Rs.100 each | 400,000 | 500,000 |
| Reserve/Retained earnings | 40,000 | 107,500 |
| Non-controlling interests | - | - |
| Total Equity | 440,000 | 607,500 |
| Liabilities | ||
| Non-Current Liabilities: | ||
| 10% Loans and borrowings | 200,000 | 250,000 |
| Total Non-Current Liabilities | 200,000 | 250,000 |
| Current Liabilities: | ||
| Trade and other payable | 50,000 | 17,500 |
| Income tax liabilities | - | 25,000 |
| Provisions | 20,000 | - |
| Total Current-Liabilities | 70,000 | 42,500 |
| Total Liabilities (Total Non-current and Current) | 270,000 | 292,500 |
| Total Equity and Total Liabilities | 710,000 | 900,000 |
Required: Statement of Cash Flow under NFRS