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20 marks Question 51 (20 marks) Farmgate Supplies Limited is a distributor...
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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)