The KK Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been Below : Statement of Profit and…
2024 · Solved Question with Answer
The KK Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been Below :
| Statement of Profit and Loss for the year 2023 | |
| Particulars | Amount (Rs) |
| Revenue from operation | 1,200,000 |
| Less: Cost of sales | (800,000) |
| Gross margin | 400,000 |
|
Add Other income (including dividend received Rs 10,000) |
60,000 |
| Total | 460,000 |
| Less: Distribution expenses | (100,000) |
| Less: Administrative expenses (write-off of goodwill Rs 10,000 and depreciation of Rs 90,000) | (260,000) |
| Operating Profit | 100,000 |
| Less: Finance cost | (25,000) |
| Net profit before tax | 75,000 |
| Less: Provision for tax | (18,750) |
| Net profit after tax | 56,250 |
| Less: Dividend paid | (6,000) |
| Retained Earnings | 50,250 |
| Statement of Financial Position of a company for 2022 and 2023 | ||
| Assets | 2022 | 2023 |
| Non-Current Assets: | ||
| Property, plant and equipment | 500,000 | 600,000 |
| Intangible assets (Goodwill) | 40,000 | 30,000 |
| Investments | 160,000 | 220,000 |
| Total Non-Current Assets | 700,000 | 850,000 |
| Current Assets: | ||
| Inventories/Stock | 40,000 | 50,000 |
| Cash and cash equivalents | 50,000 | 60,000 |
| Account receivables | 60,000 | 50,000 |
| Trade and Other receivables | 50,000 | 40,000 |
| Total Current Assets | 200,000 | 200,000 |
| Fictitious Assets | - | - |
| Total Assets (Total Non-current and Current Assets) | 900,000 | 1,050,000 |
| Equity: | ||
| Share capital @Rs.100 each | 500,000 | 600,000 |
| Reserve/Retained earnings | 30,000 | 80,250 |
| Non-controlling interests | - | - |
| Total Equity | 530,000 | 680,250 |
| Liabilities | ||
| Non-Current Liabilities: | ||
| 10% Loans and borrowings | 250,000 | 351,000 |
| Total Non-Current Liabilities | 250,000 | 351,000 |
| Current Liabilities: | ||
| Trade and other payable | 50,000 | - |
| Income tax liabilities | - | 18,750 |
| Provisions | 70,000 | - |
| Total Current-Liabilities | 120,000 | 18,750 |
| Total Liabilities (Total Non-current and Current) | 370,000 | 369,750 |
| Total Equity and Total Liabilities | 900,000 | 1,050,000 |
Required: Statement of Cash Flow under NFRS