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(a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their selling price was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Ltds customers have always met their obligations under this type of agreement.

(b) Non-current assets:

In the course of the year, Golden Ltd produced an item of equipment for its own use. The direct materials for the equipment cost GHS6m and the labour cost GHS8m. Manufacturing overheads are 50% of direct labour cost and Golden Ltd determines the final selling price for goods by adding a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018.

All plant and equipment is depreciated at 25% per annum using the straight line method with time apportionment in the year of acquisition.

The management of Golden revalued the leased property in line with recent increases in market values. On 1 October 2017 an independent architect valued the leased property at GHS96m, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation

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surplus is realised over the life of the leased property. The revaluation surplus will give rise to a deferred tax liability (see Note f).

All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018.

(c) In July 2018, the share price of Golden Ltd stood at GHS2.40 per share. On this date, Golden Ltd paid an interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4%.

(d) Closing inventory on 30 September 2018 was valued at GHS109.6m.

(e) The equity investments had a fair value of GHS34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments.

(f) A provision for income tax for the year ended 30th September 2018 of GHS48.6m is required. At 30th September 2018, the tax base of Golden Ltd's net assets was GHS30m less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ltd is 30%.

Required:

Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in equity for Golden Ltd for the year ended 30th September 2018.

(20 marks)

The following trial balance relates to Golden Ladat 30 September 2018 GHS000 GHS 760,000 Material purchases (b) 128,000 Production labour (b) 248.000 Factory overheads (b) Distribution 28.400 Administrative experies) 92.800 Finance 700 Investment income Leased property at cost 100,000 Plant and equipment a cost (b) 89.000 Accumulated amortisation depreciation at 1/10/2017 -lased property 20,000 - plant and equipment 29,000 Equity investments 36.000 Inventory at 1/10/17 93.400 Trade receivables 67.100 Trade payables Suated capital (GHS02) 100,000 Income surplus (1/10/2017) Deferred tax 1,043 400 1,043.400 The following notes are relevant: (a) Sales include goods sold and dispatched in September 2018 cn a 30-day right of return basis. Their cling price was GHS4.8m and they were sold at a gross profit margin of 25%. In the past. Golden Lad's customers have always met their obligations under this type of agreement (b) Non-current acts In the course of the year, Golden Lid produced an item of equipment for its own use. The direct materials for the equipment Cost GHS and the labour cost GHS8m. Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final selling price for goods by adding a mark-up en total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018 All plant and equipment is depreciated at 25% per annum using the straight line method with time apportionment in the year of acquisition The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the based property at GHSim, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The revaluation surplus will give rise to a deferred tax liability (see Note All mortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 () in July 2018, the share price of Golden Lad stood at GHS2.40 per share. On this date, Golden Lad paid an interim dividend included in administrative expenses) that was computed to give a dividend yield of en () Closing inventory on 30 September 2018 was valued at GHS109.6m. (c) The oquity investments had a fair value of GH834.8m on 30 September 2018. During the year there were ne purchases or disposals of any of these investments (1) A provision for income tax for the year ended 30 September 2018 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lad's net as was GHS30m less than their carrying amounts This excludes the effects of the evaluation of the leased property. The income tax rate of Golden Ladis Required: Prepare the statement of profit statement of financial prin and the statement of changes in equity for Golden Lid for the year ended 30 September 2018 GHS'000 760,000 1,600 The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 Sales (a) Material purchases (b) 128,000 Production labour (b) 248,000 Factory overheads (b) 160,000 Distribution costs 28,400 Administrative expenses (c) 92,800 Finance costs 700 Investment income Leased property - at cost (b) 100,000 Plant and equipment - at cost (b) 89,000 Accumulated amortisation/depreciation at 1/10/2017 - leased property - plant and equipment Equity investments (e) 36,000 Inventory at 1/10/17 93,400 Trade receivables 67,100 Trade payables Bank Stated capital (GHSO.2) Income surplus (1/10/2017) Deferred tax (f) 1,043,400 20,000 29,000 55,600 4,600 100,000 67,200 5,400 1,043,400 The following notes are relevant: GHS'000 760,000 1,600 The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 Sales (a) Material purchases (b) 128,000 Production labour (b) 248,000 Factory overheads (b) 160,000 Distribution costs 28,400 Administrative expenses (c) 92,800 Finance costs 700 Investment income Leased property - at cost (b) 100,000 Plant and equipment - at cost (b) 89,000 Accumulated amortisation/depreciation at 1/10/2017 - leased property - plant and equipment Equity investments (e) 36,000 Inventory at 1/10/17 93,400 Trade receivables 67,100 Trade payables Bank Stated capital (GHSO.2) Income surplus (1/10/2017) Deferred tax (f) 1,043,400 20,000 29,000 55,600 4,600 100,000 67,200 5,400 1,043,400 The following notes are relevant: The following notes are relevant: (a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their selling price was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Lid's customers have always met their obligations under this type of agreement. (b) Non-current assets In the course of the year, Golden Ltd produced an item of equipment for its own use. The direct materials for the equipment cost GHS6m and the labour cost GHS8m. Manufacturing overheads are 50% of direct labour cost and Golden Lid determines the final selling price for goods by adding a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018, All plant and equipment is depreciated at 25% per annum using the straight line method with time apportionment in the year of acquisition. The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the leased property at GHS96m, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The revaluation surplus will give rise to a deferred tax liability (see Note f). All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 (e) In July 2018, the share price of Golden Ltd stood at GHS2.40 per share. On this date, Golden Ltd paid an interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4%. () Closing inventory on 30 September 2018 was valued at GHS109.6m. (e) The equity investments had a fair value of GHS34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments. ( A provision for income tax for the year ended 30 September 2018 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lid's net assets was GHS30m less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ltd is 30% Required: Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in equity for Golden Ltd for the year ended 30 September 2018, (20 marks) The following trial balance relates to Golden Ladat 30 September 2018 GHS000 GHS 760,000 Material purchases (b) 128,000 Production labour (b) 248.000 Factory overheads (b) Distribution 28.400 Administrative experies) 92.800 Finance 700 Investment income Leased property at cost 100,000 Plant and equipment a cost (b) 89.000 Accumulated amortisation depreciation at 1/10/2017 -lased property 20,000 - plant and equipment 29,000 Equity investments 36.000 Inventory at 1/10/17 93.400 Trade receivables 67.100 Trade payables Suated capital (GHS02) 100,000 Income surplus (1/10/2017) Deferred tax 1,043 400 1,043.400 The following notes are relevant: (a) Sales include goods sold and dispatched in September 2018 cn a 30-day right of return basis. Their cling price was GHS4.8m and they were sold at a gross profit margin of 25%. In the past. Golden Lad's customers have always met their obligations under this type of agreement (b) Non-current acts In the course of the year, Golden Lid produced an item of equipment for its own use. The direct materials for the equipment Cost GHS and the labour cost GHS8m. Manufacturing overheads are 50% of direct labour cost and Golden Lad determines the final selling price for goods by adding a mark-up en total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018 All plant and equipment is depreciated at 25% per annum using the straight line method with time apportionment in the year of acquisition The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the based property at GHSim, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The revaluation surplus will give rise to a deferred tax liability (see Note All mortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 () in July 2018, the share price of Golden Lad stood at GHS2.40 per share. On this date, Golden Lad paid an interim dividend included in administrative expenses) that was computed to give a dividend yield of en () Closing inventory on 30 September 2018 was valued at GHS109.6m. (c) The oquity investments had a fair value of GH834.8m on 30 September 2018. During the year there were ne purchases or disposals of any of these investments (1) A provision for income tax for the year ended 30 September 2018 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lad's net as was GHS30m less than their carrying amounts This excludes the effects of the evaluation of the leased property. The income tax rate of Golden Ladis Required: Prepare the statement of profit statement of financial prin and the statement of changes in equity for Golden Lid for the year ended 30 September 2018 GHS'000 760,000 1,600 The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 Sales (a) Material purchases (b) 128,000 Production labour (b) 248,000 Factory overheads (b) 160,000 Distribution costs 28,400 Administrative expenses (c) 92,800 Finance costs 700 Investment income Leased property - at cost (b) 100,000 Plant and equipment - at cost (b) 89,000 Accumulated amortisation/depreciation at 1/10/2017 - leased property - plant and equipment Equity investments (e) 36,000 Inventory at 1/10/17 93,400 Trade receivables 67,100 Trade payables Bank Stated capital (GHSO.2) Income surplus (1/10/2017) Deferred tax (f) 1,043,400 20,000 29,000 55,600 4,600 100,000 67,200 5,400 1,043,400 The following notes are relevant: GHS'000 760,000 1,600 The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 Sales (a) Material purchases (b) 128,000 Production labour (b) 248,000 Factory overheads (b) 160,000 Distribution costs 28,400 Administrative expenses (c) 92,800 Finance costs 700 Investment income Leased property - at cost (b) 100,000 Plant and equipment - at cost (b) 89,000 Accumulated amortisation/depreciation at 1/10/2017 - leased property - plant and equipment Equity investments (e) 36,000 Inventory at 1/10/17 93,400 Trade receivables 67,100 Trade payables Bank Stated capital (GHSO.2) Income surplus (1/10/2017) Deferred tax (f) 1,043,400 20,000 29,000 55,600 4,600 100,000 67,200 5,400 1,043,400 The following notes are relevant: The following notes are relevant: (a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their selling price was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Lid's customers have always met their obligations under this type of agreement. (b) Non-current assets In the course of the year, Golden Ltd produced an item of equipment for its own use. The direct materials for the equipment cost GHS6m and the labour cost GHS8m. Manufacturing overheads are 50% of direct labour cost and Golden Lid determines the final selling price for goods by adding a mark-up on total cost of 40%. The direct materials, labour and overheads are included in the relevant expense items in the trial balance. The equipment was completed and was put to use on 1 July 2018, All plant and equipment is depreciated at 25% per annum using the straight line method with time apportionment in the year of acquisition. The management of Golden revalued the leased property in line with recent increases in market values. On October 2017 an independent architect valued the leased property at GHS96m, which the management agreed to. The leased property had an original useful life of 20 years which has not changed. Revaluation surplus is realised over the life of the leased property. The revaluation surplus will give rise to a deferred tax liability (see Note f). All amortisation and depreciation is charged to cost of sales. No amortisation or depreciation has yet been charged on any non-current asset for the year ended 30 September 2018 (e) In July 2018, the share price of Golden Ltd stood at GHS2.40 per share. On this date, Golden Ltd paid an interim dividend (included in administrative expenses) that was computed to give a dividend yield of 4%. () Closing inventory on 30 September 2018 was valued at GHS109.6m. (e) The equity investments had a fair value of GHS34.8m on 30 September 2018. During the year there were no purchases or disposals of any of these investments. ( A provision for income tax for the year ended 30 September 2018 of GHS48.6m is required. At 30 September 2018, the tax base of Golden Lid's net assets was GHS30m less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of Golden Ltd is 30% Required: Prepare the statement of profit or loss and other comprehensive income, the statement of financial position and the statement of changes in equity for Golden Ltd for the year ended 30 September 2018, (20 marks)

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