Crowdly

1, Land

was acquired for cash considerations. There were no disposal of property plant

and equipment.

2. Equity

instruments and financial assets held for trading were acquired for

cash

considerations. There were no sales of equity instruments or financial

assets

held for trading.

3. The

company issued new shares for cash considerations.

Included

in other income and gains is an amount $200,000 related to gain

from

revaluation of financial assets held for trading.

4. Included

in operating expenses are accrued expenses of $350,000

5. The

accumulated depreciation on property plant and equipment that was

revalued

at 31

December 2022 was

$120,000.

6. Interim

dividends were paid in July 2022.

The Net Cash

Flows related to Operating Activities for the year ended 31 December 2022 is:

Net Inflow $1,008,000

Net Inflow $1,795,000

Net Outflow $1.550,000

Net Outflow $1,698,500

The balance sheet of Baines Energy Limited for the years ended

31/12/2021 and 31/12/2022 is given

below:

	31/12/2022	31/12/2021
Assets	$	$
Property Plant and Equipment	7,368,000	6,083,000
Less Accumulated depreciation	(1,000,000)	(850,000)
Carrying Value	6.368,000	5,233,000
Investment in Equity Instruments	1,500,000	900,000
Bank	15,000	10,000
Financial Assets Held for Trading	800,000	500,000
Accounts receivable	1,264,000	1,300,000
Inventory	80,000	125,000
Total Assets	10,027,000	8,068,000
Liabilities
Accounts Payable	200,000	300,000
Accrued Expenses	300,000	100,000
Accrued Interest	53,000	23,000
Tax Payable	212,000	150,000
Long Term Loan Due within One Year	200,000	180,000
Long Term Loan	1,100,000	1,300,000
Total Liabilities	2,065,000	2,053,000
Net assets	7,962,000	6,015,000
Shareholders’ Equity
Contributed equity	6,555,000	5,255,000
Asset Revaluation reserve	530,000	500,000
Fair Value Reserves	200,000	100,000
Retained profits	677,000	160,000
Total Shareholder equity	7,962,000	6,015,000

The Statement of Comprehensive Income of Baines Energy Limited for

the year ended 31/12/2022 include the followings:

	$
Revenue	10,600,000
Other Income and Gains	520,000
Total Income	11,120,000
Less Cost of Goods Sold	(8,555,000)
Gross Profit	2,565,000
Less: Operating Expenses	(1,555,000)
Operating Profit	1,010,000
Less Interest Expense	(130,000)
Profit Before Tax	880,000
Taxation	(215,000)
Profit for the year	665,000
Other Comprehensive income
Increase in Asset Revaluation Reserve	30,000
Gain on revaluation of investment in equity instruments	100,000
Total comprehensive income	795,000

Additional

Information for year ended 31

1, Land

was acquired for cash considerations. There were no disposal of property plant

and equipment.

2. Equity

instruments and financial assets held for trading were acquired for

cash

considerations. There were no sales of equity instruments or financial

assets

held for trading.

3. The

company issued new shares for cash considerations.

Included

in other income and gains is an amount $200,000 related to gain

from

revaluation of financial assets held for trading.

4. Included

in operating expenses are accrued expenses of $350,000

5. The

accumulated depreciation on property plant and equipment that was

revalued

at 31

December 2022 was

$120,000.

6. Interim

dividends were paid in July 2022.

The Cash

Outflows related to loan repayment for the year ended 31 December 2022 is:

$180,000

$200,000

$170,000

$380,000

The balance sheet of Baines Energy Limited for the years ended

31/12/2021 and 31/12/2022 is given

below:

	31/12/2022	31/12/2021
Assets	$	$
Property Plant and Equipment	7,368,000	6,083,000
Less Accumulated depreciation	(1,000,000)	(850,000)
Carrying Value	6.368,000	5,233,000
Investment in Equity Instruments	1,500,000	900,000
Bank	15,000	10,000
Financial Assets Held for Trading	800,000	500,000
Accounts receivable	1,264,000	1,300,000
Inventory	80,000	125,000
Total Assets	10,027,000	8,068,000
Liabilities
Accounts Payable	200,000	300,000
Accrued Expenses	300,000	100,000
Accrued Interest	53,000	23,000
Tax Payable	212,000	150,000
Long Term Loan Due within One Year	200,000	180,000
Long Term Loan	1,100,000	1,300,000
Total Liabilities	2,065,000	2,053,000
Net assets	7,962,000	6,015,000
Shareholders’ Equity
Contributed equity	6,555,000	5,255,000
Asset Revaluation reserve	530,000	500,000
Fair Value Reserves	200,000	100,000
Retained profits	677,000	160,000
Total Shareholder equity	7,962,000	6,015,000

The Statement of Comprehensive Income of Baines Energy Limited for

the year ended 31/12/2022 include the followings:

	$
Revenue	10,600,000
Other Income and Gains	520,000
Total Income	11,120,000
Less Cost of Goods Sold	(8,555,000)
Gross Profit	2,565,000
Less: Operating Expenses	(1,555,000)
Operating Profit	1,010,000
Less Interest Expense	(130,000)
Profit Before Tax	880,000
Taxation	(215,000)
Profit for the year	665,000
Other Comprehensive income
Increase in Asset Revaluation Reserve	30,000
Gain on revaluation of investment in equity instruments	100,000
Total comprehensive income	795,000

Additional

Information for year ended 31

1, Land

was acquired for cash considerations. There were no disposal of property plant

and equipment.

2. Equity

instruments and financial assets held for trading were acquired for

cash

considerations. There were no sales of equity instruments or financial

assets

held for trading.

3. The

company issued new shares for cash considerations.

Included

in other income and gains is an amount $200,000 related to gain

from

revaluation of financial assets held for trading.

4. Included

in operating expenses are accrued expenses of $350,000

5. The

accumulated depreciation on property plant and equipment that was

revalued

at 31

December 2022 was

$120,000.

6. Interim

dividends were paid in July 2022.

The Cash

Outflows related to acquisition of financial assets held for trading for the

year ended 31 December 2022 is:

$800,000

$200,000

$100,000

$300,000

The balance sheet of Baines Energy Limited for the years ended

31/12/2021 and 31/12/2022 is given

below:

	31/12/2022	31/12/2021
Assets	$	$
Property Plant and Equipment	7,368,000	6,083,000
Less Accumulated depreciation	(1,000,000)	(850,000)
Carrying Value	6.368,000	5,233,000
Investment in Equity Instruments	1,500,000	900,000
Bank	15,000	10,000
Financial Assets Held for Trading	800,000	500,000
Accounts receivable	1,264,000	1,300,000
Inventory	80,000	125,000
Total Assets	10,027,000	8,068,000
Liabilities
Accounts Payable	200,000	300,000
Accrued Expenses	300,000	100,000
Accrued Interest	53,000	23,000
Tax Payable	212,000	150,000
Long Term Loan Due within One Year	200,000	180,000
Long Term Loan	1,100,000	1,300,000
Total Liabilities	2,065,000	2,053,000
Net assets	7,962,000	6,015,000
Shareholders’ Equity
Contributed equity	6,555,000	5,255,000
Asset Revaluation reserve	530,000	500,000
Fair Value Reserves	200,000	100,000
Retained profits	677,000	160,000
Total Shareholder equity	7,962,000	6,015,000

The Statement of Comprehensive Income of Baines Energy Limited for

the year ended 31/12/2022 include the followings:

	$
Revenue	10,600,000
Other Income and Gains	520,000
Total Income	11,120,000
Less Cost of Goods Sold	(8,555,000)
Gross Profit	2,565,000
Less: Operating Expenses	(1,555,000)
Operating Profit	1,010,000
Less Interest Expense	(130,000)
Profit Before Tax	880,000
Taxation	(215,000)
Profit for the year	665,000
Other Comprehensive income
Increase in Asset Revaluation Reserve	30,000
Gain on revaluation of investment in equity instruments	100,000
Total comprehensive income	795,000

Additional

Information for year ended 31

1, Land

was acquired for cash considerations. There were no disposal of property plant

and equipment.

2. Equity

instruments and financial assets held for trading were acquired for

cash

considerations. There were no sales of equity instruments or financial

assets

held for trading.

3. The

company issued new shares for cash considerations.

Included

in other income and gains is an amount $200,000 related to gain

from

revaluation of financial assets held for trading.

4. Included

in operating expenses are accrued expenses of $350,000

5. The

accumulated depreciation on property plant and equipment that was

revalued

at 31

December 2022 was

$120,000.

6. Interim

dividends were paid in July 2022.

The Cash

Inflows related to sales (receipt from customers) for the year ended 31

December 2022 is:

$8,810,000

$8,555,000

$8,610,000

$8,510,000

The balance sheet of Baines Energy Limited for the years ended

31/12/2021 and 31/12/2022 is given

below:

	31/12/2022	31/12/2021
Assets	$	$
Property Plant and Equipment	7,368,000	6,083,000
Less Accumulated depreciation	(1,000,000)	(850,000)
Carrying Value	6.368,000	5,233,000
Investment in Equity Instruments	1,500,000	900,000
Bank	15,000	10,000
Financial Assets Held for Trading	800,000	500,000
Accounts receivable	1,264,000	1,300,000
Inventory	80,000	125,000
Total Assets	10,027,000	8,068,000
Liabilities
Accounts Payable	200,000	300,000
Accrued Expenses	300,000	100,000
Accrued Interest	53,000	23,000
Tax Payable	212,000	150,000
Long Term Loan Due within One Year	200,000	180,000
Long Term Loan	1,100,000	1,300,000
Total Liabilities	2,065,000	2,053,000
Net assets	7,962,000	6,015,000
Shareholders’ Equity
Contributed equity	6,555,000	5,255,000
Asset Revaluation reserve	530,000	500,000
Fair Value Reserves	200,000	100,000
Retained profits	677,000	160,000
Total Shareholder equity	7,962,000	6,015,000

The Statement of Comprehensive Income of Baines Energy Limited for

the year ended 31/12/2022 include the followings:

	$
Revenue	10,600,000
Other Income and Gains	520,000
Total Income	11,120,000
Less Cost of Goods Sold	(8,555,000)
Gross Profit	2,565,000
Less: Operating Expenses	(1,555,000)
Operating Profit	1,010,000
Less Interest Expense	(130,000)
Profit Before Tax	880,000
Taxation	(215,000)
Profit for the year	665,000
Other Comprehensive income
Increase in Asset Revaluation Reserve	30,000
Gain on revaluation of investment in equity instruments	100,000
Total comprehensive income	795,000

Additional

Information for year ended 31

1, Land

was acquired for cash considerations. There were no disposal of property plant

and equipment.

2. Equity

instruments and financial assets held for trading were acquired for

cash

considerations. There were no sales of equity instruments or financial

assets

held for trading.

3. The

company issued new shares for cash considerations.

Included

in other income and gains is an amount $200,000 related to gain

from

revaluation of financial assets held for trading.

4. Included

in operating expenses are accrued expenses of $350,000

5. The

accumulated depreciation on property plant and equipment that was

revalued

at 31

December 2022 was

$120,000.

6. Interim

dividends were paid in July 2022.

The Cash

Outflows related to tax payments for the year ended 31 December 2022 is:

$153.000

$215,000

$182,000

$365,000

The balance sheet of Baines Energy Limited for the years ended

31/12/2021 and 31/12/2022 is given

below:

	31/12/2022	31/12/2021
Assets	$	$
Property Plant and Equipment	7,368,000	6,083,000
Less Accumulated depreciation	(1,000,000)	(850,000)
Carrying Value	6.368,000	5,233,000
Investment in Equity Instruments	1,500,000	900,000
Bank	15,000	10,000
Financial Assets Held for Trading	800,000	500,000
Accounts receivable	1,264,000	1,300,000
Inventory	80,000	125,000
Total Assets	10,027,000	8,068,000
Liabilities
Accounts Payable	200,000	300,000
Accrued Expenses	300,000	100,000
Accrued Interest	53,000	23,000
Tax Payable	212,000	150,000
Long Term Loan Due within One Year	200,000	180,000
Long Term Loan	1,100,000	1,300,000
Total Liabilities	2,065,000	2,053,000
Net assets	7,962,000	6,015,000
Shareholders’ Equity
Contributed equity	6,555,000	5,255,000
Asset Revaluation reserve	530,000	500,000
Fair Value Reserves	200,000	100,000
Retained profits	677,000	160,000
Total Shareholder equity	7,962,000	6,015,000

The Statement of Comprehensive Income of Baines Energy Limited for

the year ended 31/12/2022 include the followings:

	$
Revenue	10,600,000
Other Income and Gains	520,000
Total Income	11,120,000
Less Cost of Goods Sold	(8,555,000)
Gross Profit	2,565,000
Less: Operating Expenses	(1,555,000)
Operating Profit	1,010,000
Less Interest Expense	(130,000)
Profit Before Tax	880,000
Taxation	(215,000)
Profit for the year	665,000
Other Comprehensive income
Increase in Asset Revaluation Reserve	30,000
Gain on revaluation of investment in equity instruments	100,000
Total comprehensive income	795,000

Additional

Information for year ended 31

1, Land

was acquired for cash considerations. There were no disposal of property plant

and equipment.

2. Equity

instruments and financial assets held for trading were acquired for

cash

considerations. There were no sales of equity instruments or financial

assets

held for trading.

3. The

company issued new shares for cash considerations.

Included

in other income and gains is an amount $200,000 related to gain

from

revaluation of financial assets held for trading.

4. Included

in operating expenses are accrued expenses of $350,000

5. The

accumulated depreciation on property plant and equipment that was

revalued

at 31

December 2022 was

$120,000.

6. Interim

dividends were paid in July 2022.

The Cash Inflows

related to issue of shares for the year ended 31 December 2022 is:

$1,250,000

$1,300,000

$1,400,000

$1,800,000

The balance sheet of Baines Energy Limited for the years ended

31/12/2021 and 31/12/2022 is given

below:

	31/12/2022	31/12/2021
Assets	$	$
Property Plant and Equipment	7,368,000	6,083,000
Less Accumulated depreciation	(1,000,000)	(850,000)
Carrying Value	6.368,000	5,233,000
Investment in Equity Instruments	1,500,000	900,000
Bank	15,000	10,000
Financial Assets Held for Trading	800,000	500,000
Accounts receivable	1,264,000	1,300,000
Inventory	80,000	125,000
Total Assets	10,027,000	8,068,000
Liabilities
Accounts Payable	200,000	300,000
Accrued Expenses	300,000	100,000
Accrued Interest	53,000	23,000
Tax Payable	212,000	150,000
Long Term Loan Due within One Year	200,000	180,000
Long Term Loan	1,100,000	1,300,000
Total Liabilities	2,065,000	2,053,000
Net assets	7,962,000	6,015,000
Shareholders’ Equity
Contributed equity	6,555,000	5,255,000
Asset Revaluation reserve	530,000	500,000
Fair Value Reserves	200,000	100,000
Retained profits	677,000	160,000
Total Shareholder equity	7,962,000	6,015,000

The Statement of Comprehensive Income of Baines Energy Limited for

the year ended 31/12/2022 include the followings:

	$
Revenue	10,600,000
Other Income and Gains	520,000
Total Income	11,120,000
Less Cost of Goods Sold	(8,555,000)
Gross Profit	2,565,000
Less: Operating Expenses	(1,555,000)
Operating Profit	1,010,000
Less Interest Expense	(130,000)
Profit Before Tax	880,000
Taxation	(215,000)
Profit for the year	665,000
Other Comprehensive income
Increase in Asset Revaluation Reserve	30,000
Gain on revaluation of investment in equity instruments	100,000
Total comprehensive income	795,000

Additional

Information for year ended 31

1, Land

was acquired for cash considerations. There were no disposal of property plant

and equipment.

2. Equity

instruments and financial assets held for trading were acquired for

cash

considerations. There were no sales of equity instruments or financial

assets

held for trading.

3. The

company issued new shares for cash considerations.

Included

in other income and gains is an amount $200,000 related to gain

from

revaluation of financial assets held for trading.

4. Included

in operating expenses are accrued expenses of $350,000

5. The

accumulated depreciation on property plant and equipment that was

revalued

at 31

December 2022 was

$120,000.

6. Interim

dividends were paid in July 2022.

The Cash

Outflows related to acquisition of equity instruments for the year ended 31

December 2022 is:

$600,000

$1,500,000

$500,000

$450,000

Which one of the following statements regarding cash

equivalents is not true?

For an investment to qualify as a cash equivalent

it must have maturity of, three months or less from the date of acquisition.

For an investment to

qualify as a cash equivalent it must be readily convertible to a known amount

of cash and be subject to an significant risk of changes in value.

Cash equivalent in

one entity might not be a cash equivalent in another

Cash equivalents are

held for the purpose of meeting short-term cash commitments rather than for

investment or other purposes

20 marks

Farmgate

Supplies Limited is a distributor of domestic garden appliances throughout New

Zealand. It is registered under the Companies Act 1993 with contributed equity

of 6,000,000 ordinary shares. The

following balances related to assets, liabilities and equity are extracted from

the adjusted trial balance of the company as at financial year end date 31

March 2025:

	Debit $	Credit $
Bank		30,000
Land at fair value	5,100,000
Buildings at cost	2,000,000
Plant & Equipment at cost	2,400,000
Accumulated Depreciation – Plant & Equipment		690,000
Vehicles at cost	500,000
Accumulated Depreciation – Vehicles		245,000
Accumulated Impairment - Vehicle		5,000
Contributed Equity		8,230,000
Investment available for sale	1,900,000
Revaluation Gain of investment available for sale		500,000
Investment held for trading	1,600,000
Treasury Stock	280,000
Provision for Doubtful Debts		40,000
Long term Loan Due Within 1 year		200,000
Accounts Payable		1,000,000
Accounts Receivable	2,000,000
Accrued Interest		75,000
Inventory as at 1 April 2024	250,000
Long Term Loan		1,300,000
Retained Earnings—1 April 2024		320,000
Dividend	300,000
Revaluation Reserve – 31 March 2025		100,000
Tax Payable		819,280

The

following additional information is relevant for preparing balance sheet for

the year ended 31 March 2025:

The cost of inventory as at 31 March 2025 is
$225,000 and the net realisable value of the inventory is $200,000.
The profit for the year ended 31 March 2025 is
$2,725,720

Required

Prepare

for Farmgate Supplies Limited a Balance Sheet as at 31 March 2025 (show all

workings)

20 marks

Question 51 (20 marks)

Farmgate

Supplies Limited is a distributor of domestic

garden appliances throughout New Zealand. It is registered under the Companies

Act 1993 with contributed equity of 6,000,000 ordinary shares. The following balances related to are extra income,

expenses, loss and gains are extracted from the adjusted trial balance of the

company as at financial year end date 31 March 2025:

	Debit $	Credit $
Revaluation Loss Land	900,000
Revaluation Loss Building	140,000
Impairment Loss - Vehicle	5,000
Revaluation Gain of investment available for sale		500,000
Revaluation Gain of investment held for trading		600,000
Purchases	17,300,000
Directors’ Fees	370,000
Bad Debts	20,000
Doubtful Debts	10,000
Depreciation Building	60,000
Depreciation – Plant and Equipment	190,000
Depreciation Vehicle	75,000
Audit Fees	40,000
Donation	35,000
Dividend Income		200,000
Dividends paid	300,000
Accrued Interest		75,000
Interest Expense	150,000
Rental Income		240,000
Inventory as at 1 April 2024	250,000
Miscellaneous Expenses	430,000
Sales		23,200,000
Salaries and Wages	1,820,000
Taxation	819,280

The

following additional information is relevant for preparing financial statements

for the year ended 31 March 2025:

The cost of inventory as at 31 March 2025 is
$225,000 and the net realisable value of the inventory is $200,000.
An examination of the ledger account, shows
that miscellaneous expenses comprises of the following:

	$
Accounting fee	40,000
Bank service charges	10,000
Fines and penalties	11,000
Entertainment expenses	25,000
Distribution expenses	245,000
Insurance	40,000
Advertising and sales promotion	59,000
	430,000

Expenses are classified in the Statement of
Comprehensive Income by nature.
In the statement of comprehensive income the
company classifies the following as other expenses:
Bank service charges, Entertainment expenses, and Fines and penalties
The revaluation loss for land $900,000 was
charged to revaluation reserve for land carried down from previous years.

Required:

Prepare for Farmgate Supplies Limited a

Statement of Comprehensive Income for the year ended 31 March 2025 (Show all workings)