Question 4 The unadjusted trial balance of Go Regional Ltd. as at 31 March 20X5 is as follows: Debit $’000 Credit $’000 400,000 Ordinary shares n 5,000 Accumulated depreciation : Building n 400 Accumulated depreciation : Office equipment n 180 Building n 10,000 Cash at bank n 518 Cost of goods sold n 19,508 Bond (repayable in September 20X8) 3,600 Bond interest expenses 120 General and administrative expenses n 1,582 Office equipment, at cost n 630 Allowance for impairment of trade receivables n 63 Tax payable n 10 Sales n 23,790 Selling expenses n 758 Inventories n 5,798 Other creditors and accruals n 240 Trade payables n 3,861 Trade receivables n 4,200 Retained profits (31 March 20X4) n 4,954 42,606 42,606 Additional information: (i) The company issued 40,000 ordinary shares at an issue price of $10 each in January 20X5. This share issue has not been recorded in the company’s books. (ii) The company made a ‘1-for-4’ rights issue at a price of $14 per share on 28 February 20X5 (market price was $15.20) for additional working capital. No entry has been made in the books in respect of this issue. (iii) Bond interest rate is 5% per annum, payable annually on 1 April. (iv) On 15 March 20X5, the company carried out a share buy-back exercise and purchased 50,000 ordinary shares in the open market at the price of $12 per share. These shares are to be held as treasury shares. This transaction has not been recorded. (v) Tax liability for the current year is estimated at $400,000. The Comptroller of Income Tax confirmed that the tax liability for the year ended 31 March 20X4 has been fully settled. Any over or under-provision of income tax should be adjusted in the current financial year. The accounting entries for the adjustment and current year tax had not been made. (vi) The directors proposed a final net dividend of $0.30 per ordinary share. No accounting entry was made as at year-end. Required: Prepare the following for Go Regional Ltd: (a) Adjusting journal entries to record the above transactions. Narrations are not required.

Question 5 The unadjusted trial balance of Southern Cross Private Limited as at 30 June 20X3 is as follows: Southern Cross Private Limited Trial balance as at 30 June 20X3 $ $ 250,000 ordinary shares 400,000 100,000 non-redeemable preference shares 120,000 Accounts payable 158,000 Accounts receivable 900,000 Accumulated depreciation: furniture & fittings 230,000 Accumulated depreciation: office building 40,000 Allowance for impairment of accounts receivable 103,000 Bank loan (due 31 December 20X3) 75,000 Cash at bank 63,000 Cost of goods sold 1,550,000 Director's remuneration 25,000 Freehold land, at valuation 380,000 Furniture & fittings, at cost 580,000 General & administrative expenses 368,000 Interest expense 8,590 Interim dividend 35,000 Inventories 117,000 Office building, at cost 1,160,000 Other payables & accruals 1,000 Tax payable 620 Retained profits as at 1 July 20X2 661,690 Sales revenue 4,000,280 Selling expenses 603,000 Total 5,789,590 5,789,590 Additional information: (i) The non-redeemable preference shares issued are entitled to annual dividends of $0.30 per share. (ii) Interim dividends of $0.10 per share were paid to the non-redeemable preference and ordinary shareholders on 31 December 20X2. (iii) On 1 December 20X2, the company issued 5% bond with face value of $250,000, maturing in 5 years’ time. Interest is payable on 1 December every year. The issue of bond and the accrual of interest have not been recorded by the company. (iv) On 1 June 20X3, Southern made a ‘3-for-5’ bonus share issue, with each share valued at $0.80. The issue of bonus shares has not been recorded in the books. The directors have also decided that these new shares issued will not be entitled to any dividends for the financial year ended 30 June 20X3. (v) On 15 June 20X3, 10 office chairs (cost: $8,500; accumulated depreciation: $6,780) were disposed off at a loss of $1,220. This transaction has not been recorded in the books. (vi) Tax liability for the current financial year was estimated to be $148,000. The tax liability for the year ended 30 June 20X2 was also confirmed and fully settled with IRAS. Any over or under-provision of income tax should be adjusted in the current financial year. The accounting entries for the adjustment and current year tax have not been made. (vii) The directors proposed final dividends of $0.15 per ordinary share and outstanding stipulated dividend for non-redeemable preference for the financial year ended 30 June 20X3. This transaction was not recorded in the books. Required: (a) Prepare the necessary journal entries for the above transactions. Narrations are not required. (b) Prepare the following financial statements for the financial year ended 30 June

The trial balance of Gayathri business on 2021.12.31 is as follows.Rs. ‘000’Details Debit CreditCash and cash equivalentsStock on 31.12.2021Bonus payment for sales employeesInsuranceTrade payableCapitalBank loan interest20% Bank loanElectricity chargeMotor vehicle repairOther expensesAccumulated depreciation on 2021.01.01Property, plant and equipment – cost on 2021.01.01Trade receivableOther administrative expensesProvision for doubtful debt on 2021.01.01Office rentTelephone chargeSalesCost of sales1504503007001006506501 22012 70080090030527010 0004008 7001 0003 02510015 97029 195 29 195Additional information:1. Details of accumulated depreciation of property, plant and equipment are as follows.Assets Cost Rs. ‘000’ Accumulateddepreciation Rs. ‘000’Motor vehicleOffice equipmentLand and building(Land cost Rs. 5 000)2 0001 0009 7006006251 80012 700 3 0252. In accordance with inventory records, cost value of stock on 31.12.2021 is Rs. 450 000. However, thegoods taken by Gayathri for her private need have not been recorded.3. Telephone charge not paid up to 31.12.2021 is Rs. 30 000.4. Property, plant and equipment are depreciated on straight line method. The details useful life time andresidual value are given below.Grade - 12 (2023) – 2023 FWC - 7 - Accounting- IAssets Useful life time Residual valueMotor vehicleOffice equipmentBuilding20 years10 years18 years---5. Other expenses include the following expenses.Fire loss Rs. 220 000Business fees Rs. 100 000Employee salary Rs. 400 0006. A new office equipment was purchased for Rs. 500 000 on 2021.07.01. This amount was erroneouslyrecorded in other administrative expenses. Life time of this equipment was estimated as 5 years andthere is no residual value.7. Rs. 100 000 should be written off from debtors and allowance for doubtful debt on 2021.12.31 shouldbe adjusted as 10% of closing trade receivable.8. Cash control account balance of the business on 2021.12.31 and bank statement balance on the samedate were different due to the following reasons.(a) Rs. 50 000 directly deposited by a debtor directly at bank was not recorded in the books.(b) Own life insurance premium of Gayathri paid from the business fund was not recorded in theaccounting books.(c) Bank overdraft interest Rs. 15 000 in bank statement was not recorded in the accounting booksup to 31.12.2021.Required,1. Profit or loss statement for the year ended 2021.12.312. Statement of financial position as at 2021.12.31

You've been provided with the following Trial BalanceCalculate TOTAL ASSETSCash 25,450Accounts Receivable 25,500Inventory 85,000Prepaid Expenses 4,950Motor vehicle 68,000Equipment 155,000Accounts Payable 35,000Unearned Revenue 8,000Wages Payable 15,000Bank Loan 50,000Share Capital 235,000Retained Earnings 10,000Dividends -5,000Revenue 53,650Cost of Sales -12,450Wages Expense -15,000Interest expense -2,500Marketing expense -2,800Insurance expense -5,000

You've been provided with the following Trial BalanceCash           5,000Accounts Receivable           6,000Inventory           2,000Prepaid Expenses              500Property Plant Equipment         25,000Land         20,000Accounts Payable         10,000Unearned Revenue           2,500Wages Payable           3,500Bank Loan         20,000Share Capital         15,000Retained Earnings         10,000Dividends         (5,200)Revenue         15,000Cost of Sales         (6,500)Marketing Expense         (2,000)Rent Expense         (1,500)Wages Expense            (800)Utilities Expense         (1,500)Calculate GROSS PROFIT

Question 4 (Adapted Past exam question): Finding Equity’s balanceThe following opening balances are provided on 1 July 2019 for Wonder Alice Ltd:Retained Profits $50,000Share Capital $100,000General reserve $10,000Revaluation surplus $20,000Total Shareholder’s Equity $180,000During the financial year, the following transactions happened:• The company made a net profit after tax of $50,000.• The company transferred $15,000 from retained profits to general reserve.• The company declared and paid cash dividends totalled $20,000.• The company issued 1,000 new shares to an institutional investor and received$15,000 cash.• A bonus share issue of $10,000 was made out of the Revaluation Surplus.Required:(1) Draw up all the equity T-accounts (retained profits, share capital, general reserve,revaluation surplus)(2) Find the ending balance of Shareholders’ Equity