KLZR Ltd Trial Balance And Financial Statements For The Year Ended 30 June 2018

KLZR LTD.

Statement of profit and loss and other comprehensive income for the year ended 30 June, 2018

 For the year ended
30 June, 2018

Sales

$    997,000

Less: Cost of sales

$   (355,000)

Gross Profit

$    642,000

Add; Non-operating income

  Interest revenue

$    3,000

  Dividend revenue

$    7,000

  Bad debt recovered

$  26,000

$      36,000

Less: Selling & Distribution expenses

  Depreciation – motor vehicles 

$  25,000

  Depreciation – plant and equipment 

$  36,000

  Salaries 

$  60,000

  Selling expenses

$  97,000

$    218,000

Less: Administration expenses

  Depreciation – motor vehicles 

$  20,000

  Depreciation – plant and equipment 

$  10,000

  Rental expense

$  15,000

  Salaries 

$  44,000

  Loss on destruction of building 

$  42,000

$    131,000

Less: Finance costs

  Doubtful debts expense

$    8,000

  Interest expense

$  32,000

$      40,000

Less: Other Operating expenses

  Office expense

$  92,000

  Impairment loss – goodwill

$    5,000

  Payment to auditors

     in the capacity of auditors

$  20,000

     in the capacity of consultants

$  16,000

$    133,000

Profit before tax

$    156,000

Less: Income tax expense

$      61,000

Profit for the year

$      95,000

Other comprehensive income

  Gain on revaluation

$  20,000

  Tax on above

 $   (6,000)

$      14,000

Total other comprehensive income

$      14,000

Total comprehensive income for the year

$    109,000

KLZR Ltd.

Statement of changes in equity  for the year ended on 30 June, 2018

Particulars

 Amount

Paid up capital

Balance as at 1 July, 2017

$      400,000

Add: changes during the year

$               –

Balance as at June 30, 2018

$      400,000

Retained Earnings

Balance as at 1 July, 2017

$      225,000

Add: Profit for the year

$        95,000

Less: Transfer to general reserve

$       (25,000)

Less: Dividends declared

$       (65,000)

Balance as at June 30, 2018

$      230,000

General Reserve

Balance as at 1 July, 2017

$        15,000

Add: Transfer from retained earnings

$        25,000

Balance as at June 30, 2018

$        40,000

Revaluation Reserve

Balance as at 1 July, 2017

$               –

Add: Fair valuation gain credited in OCI

$        14,000

Balance as at June 30, 2018

$        14,000

Total Equity

$      684,000

Events

Adjusting or non-adjusting

Justification

1

Non-Adjusting event

As per AASB 110, the adjusting events are those events whose evidence of occurrence are available on the reporting date. As no evidence was available on the reporting date, hence it is a non-adjusting event.

2

Adjusting event

As per AASB 110, the adjusting events are those events whose evidence of occurrence are available on the reporting date. As events were available on the reporting date, hence it is an adjusting event.

3

Non-Adjusting event

As circumstances or evidences for decline in exchange rate were not available on the reporting date, hence it is a non-adjusting event and no adjustment is required.

4

Adjusting event

As on balance date, it is very well known that depreciation is under charged, hence evidence of less depreciation was available, so it is said that it is an adjusting event.

Events

Journal Entries

Note Disclosures

1

NA

As per para 21 of AASB 110, the disclosure is as under, “The value of company’s investment has gone done by $50,000 due to sudden fall in the share market.”

2

Doubtful debts    Dr. $400,000
To Accounts receivable   $400,000
(To record receivable written off)

NA

3

NA

As per para 21 of AASB 110, the disclosure is as under, “The value of company’s USD loan liability has increased by $10,105 due to sudden fall in the share market, resulting in a loss of $10,105.”

4

Depreciation expense   Dr. $350,000
To Accumulated Depreciation   $350,000
(To record depreciation)

NA

Journal entries in the books of Tara Ltd.

Date

Description

 Amount

30-Sep-17

Bank A/c

 $      15,600,000

Share Application  A/c

 $     (15,600,000)

(To record receipt of share application money recorded)

10-Oct-17

Share Application A/c

 $      15,600,000

Share Capital A/c

 $     (15,000,000)

Bank A/c

 $         (600,000)

(To record allotment of shares and refund of excess money)

10-Oct-17

Share Allotment A/c

 $      10,000,000

Share Capital A/c

 $     (10,000,000)

(To due share allotment due)

10-Nov-17

Bank A/c

 $      10,000,000

Share Allotment A/c

 $     (10,000,000)

(To record receipt of share allotment money)

1-Feb-18

Share Call Money A/c

 $       5,000,000

Share Capital A/c

 $      (5,000,000)

(To due share call money)

28-Feb-18

Bank A/c

 $       4,900,000

Share Call Money A/c

 $      (4,900,000)

(To record receipt of share call money on 4,900,000 shares)

14-Mar-18

Share Capital A/c

 $          600,000

Share Call Money A/c

 $         (100,000)

Share Forfeiture A/c

 $         (500,000)

(To record forfeiture of 100,000 shares forfeited due non-payment of call money)

14-Mar-18

Bank A/c

 $          530,000

Share Forfeiture A/c

 $            70,000

Share Capital A/c

 $         (600,000)

(To record reissued of forfeited shares)

Note-1

Calculation of revaluation gain / loss as on 30 June 2017

Carrying value as on 30 June, 2017

 $     160,000

Purchase value

 $      190,000

Depreciation for 2016-17

 $      (30,000)

Fair valued amount as on date

 $     150,000

Revaluation Gain/ (Loss)

 $      (10,000)

Note-2

Calculation of revaluation gain / loss as on 30 June 2018

Carrying value as on 30 June, 2018

 $     121,200

Carrying value as on 30 June, 2017

 $      150,000

Depreciation for 2017-18 ((150,000-6,000)/5)

 $      (28,800)

Fair valued amount as on date

 $     140,000

Revaluation Gain/ (Loss)

 $       18,800