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    Chesnut Model Answer

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    Kiri chris
    This document summarizes the statement of profit or loss and other comprehensive income (SOPL & OCI) and statement of financial position (SOFP) for Chesnut for the year ending 31 March 20X5. The SOPL & OCI shows revenue of $387.5 million and net profit of $18.652 million. The SOFP outlines assets of $201.475 million including property of $62 million, and liabilities of $117.926 million including redeemable preference shares of $54.2 million and convertible loan notes of $9.026 million. Workings provide additional details on items such as property revaluation, plant held for sale valuation, cost of sales calculation, and tax

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    Chesnut Model Answer

    Uploaded by

    Kiri chris
    9 views2 pages
    This document summarizes the statement of profit or loss and other comprehensive income (SOPL & OCI) and statement of financial position (SOFP) for Chesnut for the year ending 31 March 20X5. The SOPL & OCI shows revenue of $387.5 million and net profit of $18.652 million. The SOFP outlines assets of $201.475 million including property of $62 million, and liabilities of $117.926 million including redeemable preference shares of $54.2 million and convertible loan notes of $9.026 million. Workings provide additional details on items such as property revaluation, plant held for sale valuation, cost of sales calculation, and tax

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    This document summarizes the statement of profit or loss and other comprehensive income (SOPL & OCI) and statement of financial position (SOFP) for Chesnut for the year ending 31 March 20X5. The SOPL & OCI shows revenue of $387.5 million and net profit of $18.652 million. The SOFP outlines assets of $201.475 million including property of $62 million, and liabilities of $117.926 million including redeemable preference shares of $54.2 million and convertible loan notes of $9.026 million. Workings provide additional details on items such as property revaluation, plant held for sale valuation, cost of sales calculation, and tax

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    9 views2 pages

    Chesnut Model Answer

    Uploaded by

    Kiri chris
    This document summarizes the statement of profit or loss and other comprehensive income (SOPL & OCI) and statement of financial position (SOFP) for Chesnut for the year ending 31 March 20X5. The SOPL & OCI shows revenue of $387.5 million and net profit of $18.652 million. The SOFP outlines assets of $201.475 million including property of $62 million, and liabilities of $117.926 million including redeemable preference shares of $54.2 million and convertible loan notes of $9.026 million. Workings provide additional details on items such as property revaluation, plant held for sale valuation, cost of sales calculation, and tax

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    a) Chesnut's SOPL & OCI for year end 31 March 20X5 $000s

    Revenue 387,500
    Cost of sales (305,630)
    Gross Profit 81,870
    Admin Expenses (34,370)
    Dist costs (24,375)
    Operating profit 23,125
    Finance costs (5,898)
    Investment income 4,500
    Profit before tax 21,727
    Income tax expense (3,075)
    Profit for the year 18,652
    OCI
    Gain on revaluation of Property 5,000
    Total Comp Income 23,652

    b) Chesnut's SOFP as at 31 March 20X5 $000s $000s


    NON CURRENT ASSETS
    Property 62000
    CURRENT ASSETS
    Plant held for sale 28500
    Inventory 35250
    Trade receivables 41375
    Bank 34350
    139475
    Total assets 201475
    EQUITY
    Share capital of $1 shares 50000
    Equity Option - Conversion rights 1272
    Retained profit 18,277
    Revaluation Surplus 14000
    83,549
    NON CURRENT LIABILITIES
    Redeemable pref shares 54200
    Convertible loan notes - Debt element 9026
    Deferred tax 7000
    70226
    CURRENT LIABILITIES
    Trade payables 42000
    Income tax 5700
    47700
    Total Equity and Liabilities 201,475
    ALL WORKINGS ARE IN $000S $000S

    W1.PROPERTY
    Valuation at 1 April 20x4 60000
    Dep charge for the year 3000
    NBV before revaluation 57000
    Gain on revaluation 5000
    Valuation at 31 March 20x5 62000

    w2.PLANT HELD FOR SALE


    Net book value at 1 April 20x4 38000
    Dep charge up to 31 March 20x5 9500
    Net book value at 31 March 20x5 28500
    Net realisable value 32000
    Therefore Correct valuation at 31 March 20x5 28500

    w3 COST OF SALES
    As per trial balance 293130
    Dep on plant and equipment 9500
    Dep on Property 3000
    Total 305630

    w4. Redeemable pref shares


    Opening liability at 1 April 20x4 52000
    Add Finance cost @10% 5200
    Less annual payment -3000
    Closing liabilty 54200

    w5. COMPOUND INSTRUMENT

    Present
    Year Cashflow D. Factor Value
    1 400 0.93 372
    2 400 0.86 344
    3 400 0.79 316
    4 10400 0.74 7696
    Liabilty element at 1 April 20x4 8728
    Equity option 1272
    Total proceeds 10000

    Liabilty element at 1 April 20x4 8728


    Add finance cost @8% 698
    Less annual payment -400
    Liabilty element at 31 March 20x5 9026

    w6. TAX
    Tax estimate for the year 5700
    Under provision 875
    Decrease in Def Tax -3500
    Tax Charged to the SOPL 3075

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