Part 1: Adjustment Entries
|
Adjustment Entries as on 30 June 2017 |
||||
|
In the books of Roxy Limited |
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|
Amount in AUD $ |
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|
Sr. No. |
Date |
Particulars |
Debit |
Credit |
|
1 |
30-Jun |
Depreciation Expenses |
|
|
|
|
|
To Accumulated Depreciation-Buildings |
$ 2,000,000.00 |
|
|
|
|
(40000000@5%) |
|
$ 2,000,000.00 |
|
2 |
30-Jun |
Depreciation Expenses |
$ 250,000.00 |
|
|
|
|
To Accumulated Depreciation-Vehicles |
|
$ 250,000.00 |
|
|
|
(2500000@10%) |
|
|
|
3 |
30-Jun |
Profit and Loss account |
$ 2,250,000.00 |
|
|
|
|
To Depreciation Expenses |
|
$ 2,250,000.00 |
|
4 |
30-Jun |
Profit and Loss account |
$ 160,000.00 |
|
|
|
|
To allowance for doubtful debts |
|
$ 160,000.00 |
|
5 |
30-Jun |
Salaries: Travellers |
$ 100,000.00 |
|
|
|
|
To Salaries: Travellers Payable |
|
$ 100,000.00 |
|
6 |
30-Jun |
Prepaid general expenses |
$ 15,000.00 |
|
|
|
|
To General Expenses |
|
$ 15,000.00 |
|
7 |
30-Jun |
Profit and loss account |
$ 3,504,000.00 |
|
|
|
|
To Provision for Income Tax |
|
$ 3,504,000.00 |
|
8 |
30-Jun |
Dividends |
$ 2,500,000.00 |
|
|
|
|
To Dividends payable |
|
$ 2,500,000.00 |
|
9 |
30-Jun |
Profit and loss Appropriation account |
$ 1,000,000.00 |
|
|
|
|
To General Reserve |
|
$ 1,000,000.00 |
|
10 |
30-Jun |
Land |
$ 800,000.00 |
|
|
|
|
To Revaluation Surplus |
|
$ 800,000.00 |
|
|
|
(11000000-10200000) |
|
|
|
11 |
30-Jun |
Profit and Loss Account |
$ 17,000.00 |
|
|
|
|
To Provision for expenses for legal suits |
|
$ 17,000.00 |
|
12 |
30-Jun |
Provision for Income Tax |
$ 1,974,900.00 |
|
|
|
|
To Income Tax Payable |
|
$ 1,974,900.00 |
|
|
|
Total |
$ 14,570,900.00 |
$ 14,570,900.00 |
Part 2: Financial Statements
|
Statement of Comprehensive Income |
||
|
of Roxy Limited |
||
|
for the period ending on 30 June 2017 |
||
|
Amount in AUD $ |
||
|
Particulars |
Amount |
Amount |
|
Sales revenue |
|
$ 24,000,000.00 |
|
Less: Cost of Sales |
|
$ 11,000,000.00 |
|
Gross Profit |
|
$ 13,000,000.00 |
|
Add: Other Incomes |
|
|
|
Interest on investments |
$ 1,000,000.00 |
|
|
Rent revenue |
$ 750,000.00 |
$ 1,750,000.00 |
|
Profit Before operating expenses |
|
$ 14,750,000.00 |
|
Less: Operating Expenses |
|
|
|
Selling Commission expense |
$ 100,000.00 |
|
|
Delivery expense |
$ 200,000.00 |
|
|
Salaries: Travelers |
$ 550,000.00 |
|
|
Salaries: Administration |
$ 2,000,000.00 |
|
|
Directors fees |
$ 200,000.00 |
|
|
Depreciation |
$ 2,250,000.00 |
|
|
Allowance for doubtful debts |
$ 160,000.00 |
|
|
Audit fees |
$ 90,000.00 |
|
|
Interest on mortgage |
$ 1,000,000.00 |
|
|
Provision for expenses for legal suits |
$ 17,000.00 |
|
|
Provision for Income tax |
$ 3,504,000.00 |
|
|
Damage due to fire |
$ 150,000.00 |
|
|
General expenses |
$ 1,450,000.00 |
$ 11,671,000.00 |
|
Net Profit |
|
$ 3,079,000.00 |
|
Calculation of Income Tax Payable |
|
|
Particulars |
Amount |
|
Net Profit Before income tax paid |
$ 3,079,000.00 |
|
Add: Provision for income tax |
$ 3,504,000.00 |
|
Net Profit amount for income tax calculation |
$ 6,583,000.00 |
|
Income Tax @30% |
$ 1,974,900.00 |
|
Net Profit After Tax |
$ 4,608,100.00 |
|
Statement of Change in Equity |
|
|
of Roxy Limited |
|
|
for the period ending on 30 June 2017 |
|
|
Amount in AUD $ |
|
|
Share Capital |
|
|
Opening Balance |
$ 67,000,000.00 |
|
Add: Any issue |
$ - |
|
Closing Balance |
$ 67,000,000.00 |
|
Retained Earnings |
|
|
Opening Balance |
$ 6,600,000.00 |
|
Less: Final Dividend Previous year |
$ -2,500,000.00 |
|
Less: Interim Dividend |
$ -1,500,000.00 |
|
Add: Profit of the year |
$ 3,079,000.00 |
|
Less: Transfer to general reserve |
$ -1,000,000.00 |
|
Closing Balance |
$ 4,679,000.00 |
|
Statement of Financial Position |
||
|
of Roxy Limited |
||
|
as at 30 June 2017 |
||
|
Amount in AUD $ |
||
|
Particulars |
Amount |
Amount |
|
Assets |
|
|
|
Current Assets |
|
|
|
Cash at Bank |
$ 1,000,000.00 |
|
|
Accounts receivables |
$ 4,495,000.00 |
|
|
Less: Allowance to Doubtful Debt |
$ -160,000.00 |
|
|
Prepaid general expenses |
$ 15,000.00 |
|
|
Inventory |
$ 21,500,000.00 |
|
|
Total Current Assets |
|
$ 26,850,000.00 |
|
Non Current assets |
|
|
|
Land |
$ 11,000,000.00 |
|
|
Buildings |
$ 40,000,000.00 |
|
|
Less: Accumulated depreciation- buildings |
$ -6,000,000.00 |
|
|
Vehicle |
$ 2,500,000.00 |
|
|
Less: Accumulated depreciation- vehicles |
$ -750,000.00 |
|
|
Investments |
$ 35,000,000.00 |
|
|
Total Non Current Assets |
|
$ 81,750,000.00 |
|
Total Assets |
|
$ 108,600,000.00 |
|
Liabilities |
|
|
|
Current Liabilities |
|
|
|
Bank overdraft |
$ 7,500,000.00 |
|
|
Salaries: Travellers Payable |
$ 100,000.00 |
|
|
Provision for Income Tax |
$ 1,529,100.00 |
|
|
Provision for expenses for legal suits |
$ 17,000.00 |
|
|
Accounts payable |
$ 2,000,000.00 |
|
|
Income tax payable |
$ 1,974,900.00 |
|
|
Total Current Liabilities |
|
$ 13,121,000.00 |
|
Non Current Liabilities |
|
|
|
Mortgage payable on land and buildings |
|
$ 20,000,000.00 |
|
Shareholder's Fund |
|
|
|
Share capital |
$ 67,000,000.00 |
|
|
Calls in advance |
$ 2,000,000.00 |
|
|
Retained earnings (incl. Net Income) |
$ 4,679,000.00 |
|
|
General Reserve |
$ 1,000,000.00 |
|
|
Revaluation Surplus |
$ 800,000.00 |
|
|
Total Shareholder's Fund |
|
$ 75,479,000.00 |
|
Total Liabilities and Shareholder's fund |
|
$ 108,600,000.00 |
- The financial statements have been prepared in accordance with the AASB 101 standards and all the reporting requirements provided in the other accounting standards.
- The measurement basis used for preparation of the financial accounts is historical cost basis (Accounting Standards, 2017).
- The above financial statements are being approved by the board of directors of the company in the annual general meeting.
- Fixed assets or non current assets of the company are presented in the balance sheet at cost less accumulated depreciation. It is presented as per AASB 116 (Accounting Standards, 2017).
- Depreciation has been charged at the rate of 10% p.a. and on buildings at the rate of 5% p.a. for the whole year. It can be seen in below table.
|
Particulars |
Building |
Vehicle |
|
Cost of Asset |
$ 40,000,000.00 |
$ 2,500,000.00 |
|
Depreciation of Current Year |
$ 2,000,000.00 |
$ 250,000.00 |
|
Depreciation Rate |
5% |
10% |
|
Particulars |
Building |
Vehicle |
|
Accumulated Depreciation at starting of year |
$ 4,000,000.00 |
$ 500,000.00 |
|
Depreciation of Current year |
$ 2,000,000.00 |
$ 250,000.00 |
|
Accumulated Depreciation at end of year |
$ 6,000,000.00 |
$ 750,000.00 |
Accounts Receivables and any prepayments under current assets are recorded at fair value less any provision for doubtful debt.
Accounting Standards. 2017. [Online]. Available at: https://www.aasb.gov.au/Pronouncements/Current-standards.aspx [Accessed on: 6 September, 2017].
Notes to Accounts (Sample). n.d. [Online]. Available at: https://www.bm.icac.hk/bm_wcms/UserFiles/File/en/CMS/sample_documents_fm/Notes%20to%20the%20Accounts.pdf [Accessed on: 6 September, 2017].
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