1 Introduction to published accounts Chapter learning objectives

Introduction to published accounts
Test your understanding answers

^Test^y^our understanding 1

Arran Statement of profit or loss and other comprehensive income for the year ended 31 March 20X7 $000 Revenue 2,165 Cost of sales (W1) (1,389) –––––– Gross profit 776 Administration (250) Distribution (295) –––––– Operating profit 231 Finance cost (25) Interest receivable 1 Investment income 15 –––––– Profit before tax 222 Income tax expense (165) –––––– Profit for the year 57 –––––– Other comprehensive income Gain on land revaluation 100 –––––– Total comprehensive income for the year 157 ––––––

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Chapter 1



Arran Statement of changes in equity
Share
capital


Share
premium

Revaluation
surplus

Retained earnings
Total
equity
$000 $000 $000 $000 $000 B/f 270 80 20 235 605 Total
comprehensive
income 100 57 157 Dividends (27) (27) ––– ––– ––– ––– ––– C/f 270 80 120 265 735 ––– ––– ––– ––– –––
Arran Statement of financial position as at 31 March 20X7
Non-current assets: $000 $000
Property, plant and equipment (W2) 706 Current assets:
Inventory 85
Receivables 233
Bank 3 ––––– 321 ––––– 1,027 ––––– Share capital (from SOCIE) 270 Share premium (from SOCIE) 80 Revaluation surplus (from SOCIE) 120 Retained earnings (from SOCIE) 265 ––––– 735 Non-current liabilities 100 Current liabilities
Trade payables 27
Tax liability 165 ––––– 192 ––––– 1,027 –––––

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