MALAWI COLLEGE OF ACCOUNTANCY
SCHOOL OF COMMERCE
BACHELOR OF APPLIED ACCOUNTING-AUDIT AND
INFORMATION SYSTEMS.
CFR411- Corporate Financial Reporting
Student Name: Memory Chunga
Student Number: CH1615
Year: 4
Submission date: 18th December 2020
Submitted to: Mr Kalinga
a. Statement of comprehensive income for the year ended 31
March 2017
Revenue (W1)
Cost of sales (W2)
Gross profit
Other income (W3)
Distribution costs (W4)
Administrative expenses
Profit before tax
Income tax expense
Profit for year
Other Comprehensive income
Revaluation surplus (W5)
Total comprehensive income for year
K
528,770
(363,960)
164,810
13,500
178,310
(48,126)
(18,710)
111,474
(38,100)
73,374
40,000
113,374
WORKINGS
1. Revenue = sales revenue – returns inwards
= 530,650 – 1,880
= K 528,770
2. Cost of sales
K
Opening inventory
24,680
Purchases
298,400
Discount received
(10)
Closing inventory
(29,170)
Factory overheads (66,420 + 1,240)
67,660
Depreciation
2,400
363,960
3. Other income = rent received + investment income
= 12,000 + 1500
= K 13,500
4. Distribution costs
Per trial balance
44,280
Depreciation (19,230 × 20%)
3,846
K 48,126
5. Revaluation surplus = 390,000 – 350,000 = K 40,000
b. Statement of financial position as at 31 march 2017
ASSETS
Non-current assets
Land and buildings (at valuation)
Delivery vehicles (carrying amount) W1
Factory plant and equipment (W2)
K
390,000
15,384
21,600
426,984
Investments
Current assets
Inventories
Trade receivables (W3)
Cash
30,000
29,170
15,230
410
44,810
501,794
Total assets
EQUITY AND LIABILITIES
Capital and reserves
Issued ordinary capital
Revaluation surplus
Retained earnings
Current liabilities
Trade payables (W4)
Accrued expenses
Bank overdraft (W5)
Income tax
K
225,000
40,000
158,404
423,404
34,000
1,240
5,050
38,100
Total equity and liabilities
WORKINGS
1. Delivery vehicles = 19,230 – 3,846
= K 15, 384
2. Factory plant and equipment = 24,000 – 2,400
= K21, 600
3. Trade receivables = 15,690 – 460 = K 15,230
78,390
501,794
4. Trade payables = 34,700 – 700
= K 34,000
5. Bank overdraft = 4,820 + 690 – 460
= K 5,050
c. Statement of changes in equity
(K) Share Revaluation Retained
Capital
Surplus (K) Earnings (K)
Balance at 31 March 2017
150,000
–
160,030
Comprehensive income
40,000
73,374
Bonus issue
75,000
(75,000)
225,000
225,000
40,000
158,404
Total
310,030
113,374
–
423,404