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    ILLUSTRATION 1 On PUBLISHED FINANCIAL STATEMENT 2023 - 101907

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    ILLUSTRATION 1 On PUBLISHED FINANCIAL STATEMENT 2023 - 101907

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    kelkumaa
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    Ya

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    ILLUSTRATION 1 on PUBLISHED FINANCIAL STATEMENT 2023_101907

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    ILLUSTRATION 1 On PUBLISHED FINANCIAL STATEMENT 2023 - 101907

    Uploaded by

    kelkumaa
    Ya

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    ILLUSTRATION 1:

    The following trial balance has been extracted from the books of Smart Plc as at 31 st December, 2023:

    N N
    Administration expenses 600,000
    Distribution costs 708,000
    Equity share of N1 each 648,000
    Share premium 192,000
    Revaluation reserve 48,000
    Dividend 64,800
    Cash at bank and in hand 7,200
    Receivables 559,200
    Interest paid 60,000
    Dividend received 36,000
    Interest received 2,400
    Land and building at cost ( Land element N912,000) 1,152,000
    Plant and machinery at cost 960,000
    Provision for depreciation:
    Land and building 72,000
    Plant and machinery 408,000
    Retained earnings (1st Jan 2023) 564,000
    Purchases 3,024,000
    Sales 5,196,000
    Inventory at 1st Jan 2023 336,000
    Trade payables 64,800
    Bank loan . . 240,000
    7,471,200 7,471,200

    The following notes are relevant:

    i. Inventory at 31st December 2023 was valued at a cost of N228,000. Included in this balance
    were gross goods that had cost N36,000. These goods had become damaged during the year
    and it is considered that following remedial work, the goods could be sold for N12,000.
    ii. Depreciation for the year to 31st December 2023 is to be charged to cost of sales as follows:
    Buildings 5% on cost and Plant and machinery 30% on carrying value.
    iii. Income tax of N396,000 is to be provided for the year to 31st December 2023.
    iv. Land is to be revalued upwards by N240,000.

    Required:

    Prepare the statement of comprehensive income, statement of changes in equity and statement of financial
    position for the year ended 31st December 2023

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