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