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The following trial balance relates to Xtol at 31 March 20X4:

         $'000      $'000
Revenue      490,000
Cost of sales 290,600  
Distribution costs 33,500  
Administrative expenses 36,800  

Loan note interest
and dividends paid (notes(iv) and (v))

13,380  
Bank interest 900  
20-year leased property at cost  100,000  
Plant and equipment at cost (note (ii))    155,500  
Accumulated amortization/
depreciation at 1 April 20X3:
   
          Leased property   25,000
          Plant and equipment   43,500
Inventory at 31 March 20X4 61,000  
Trade receivables 63,000  
Trade payables   32,200
Bank   5,500
Equity shares of 25 cents each (note (iii))   56,000
Share premium   25,000
Retained earnings at 1 April 20X3   26,080
5% convertible loan note (note (iv))   50,000
Current tax (note (vi)) 3,200  
Deferred tax (note (vi)) _______ 4,600
  757,880 757,880

 

The following notes are relevant:

  1. Revenue includes an amount of $20 million for cash sales made through Xtol's retail outlets during the year on behalf of Francais.  Xtol, acting as agent, is entitled to a commission of 10% of the selling price of these goods. By 31 March 20X4, Xtol had remitted to Francais $15 million (of the $20 million sales) and recorded this amount in cost of sales.
  2. Plant and equipment is depreciated at 12½% per annum on the reducing balance basis.  All amortisation and depreciation of non-current assets is charged to cost of sales.
  3. On 1 August 20X3, Xtol made a fully subscribed rights issue of equity share capital based on two new shares at 60 cents each for every five shares held.  The issue has been fully recorded in the trial balance figures.
  4. On 1 April 20X3, Xtol issued a 5% $50 million convertible loan note at par. Interest is payable annually in arrears on 31 March each year. The loan note is redeemable at par or convertible into equity shares at the option of the loan note holders on 31 March 20X6. The interest on an equivalent loan note without the conversion rights would be 8% per annum.
    The present values of $1 receivable at the end of each year, based on discount rates of 5% and 8%, are:

                     

End of year 5% 8%
1 0.95 0.93
2 0.91 0.86
3 0.86 0.79

 

  1. An equity dividend of 4 cents per share was paid on 30 May 20X3 and, after the rights issue, a further dividend of 2 cents per share was paid on 30 November 20X3.
  2. The balance on current tax represents the under/over provision of the tax liability for the year ended 31March 20X3.  A provision of $28 million is required for current tax for the year ended 31 March 20X4 and at this date the deferred tax liability was assessed at $8·3 million.

Requirements:

(a) Prepare the statement of profit or loss for Xtol for the year ended 31 March 20X4  (8 marks)

(b) Prepare the statement of financial position for Xtol for the year ended 31 March 20X4     (12 marks)

Marks: 20

Answers submitted

Created by Ref Marking Action
Kamrul Hasan's picture
Kamrul Hasan
09/05/2020 - 22:35

9634
20
Kamrul Hasan's picture
Kamrul Hasan
08/31/2020 - 20:02

9564
20
Kamrul Hasan's picture
Kamrul Hasan
08/23/2020 - 08:05

9496
20
Sajjad Hosen Pavel's picture
Sajjad Hosen Pavel
08/22/2020 - 14:12

9488
20
Kamrul Hasan's picture
Kamrul Hasan
08/21/2020 - 09:25

9472
20
Kamrul Hasan's picture
Kamrul Hasan
08/20/2020 - 11:14

9446
20
Md. Sojib Khan's picture
Md. Sojib Khan
08/09/2020 - 14:39

9334
20
Kamrul Hasan's picture
Kamrul Hasan
03/10/2020 - 17:17

9098
20
MD. Fahim Khan's picture
MD. Fahim Khan
03/10/2020 - 17:14

9088
20
MD. Ohidur Rahman's picture
MD. Ohidur Rahman
03/10/2020 - 17:24

9092
20
Md. Sojib Khan's picture
Md. Sojib Khan
03/10/2020 - 17:18

9102
20
Md. Tariful Mursalin Rifat's picture
Md. Tariful Mur...
03/10/2020 - 17:20

9090
20
Runa Akter's picture
Runa Akter
03/10/2020 - 17:18

9100
20
Sajjad Hosen Pavel's picture
Sajjad Hosen Pavel
03/10/2020 - 17:18

9096
20
Lokonath Debnath's picture
Lokonath Debnath
11/12/2019 - 18:15

7948
20
Md Ishtiak Isty's picture
Md Ishtiak Isty
11/12/2019 - 18:19

7946
20
Md. Tariful Mursalin Rifat's picture
Md. Tariful Mur...
11/12/2019 - 18:25

7944
20