SECTION A Question 1 Kunal plc was established in 2014 and m

SECTION A Question 1 Kunal plc was established in 2014 and manufactures sports equipment. The following draft trial balance has been produced for the year ended 30 June 2016 £000 £000 25,920 52 Revenue Dividends received from non-current asset investments Cost of sales Distribution costs Administrative expenses Audit fees Interest paid on loan stock Bank interest on overdraft Interim dividend paid Freehold land Freehold buildings Leasehold building (see note 4) Plant and machinery Furniture and fittings Provisions for depreciation: Freehold buildings Plant and machinery Furniture and fittings 11,746 3,282 2,420 80 110 80 2,790 6,204 1,200 5,420 3,840 1,440 1,220 1,080 CONT

Solution

a) Statement of Comprehensive Income:

b) Change in Equity:

Particulars	Amount	Amount
Revenue	25920
Dividend received	52	25972
Less: Cost of Sales	11746
Distribution Cost	3282
Admin Expenses	2420
Audit Fees	80
Interest Paid	110
Interest on Overdraft	66
Interim dividend paid	80	(17784)
Provision for Depreciation
Freehold building	146.08
Plant and Machinery	840
Furniture and Fitting	690
Leasehold Building	40	(1716.08)
Loss on Sale of Plant and machinery	3200
Bad Debts	90
Provision to dismantle the plant and machinery	8	(3298)
Net Profit		3173.92
Less: Tax		(825.22)
Profit after Tax		2348.7
Deferred Tax		681.98
Net		3030.68