Preparation of Financial Statement for Companies

CHAPTER №21: PREPARATION OF FINANCIAL STATEMENTS FOR COMPANIES (Designed to cover in 1 consecutive seminar) TASK №1: DEFINITIONS In the following sentences (1-9) with the words or phrases (A-K) on the following page. Write your answers in the grid below. You can use one letter more than one. A. The operating cycle B Finance cost C Income D current asset E current liability F Non-current assets G Expenses H The Statement of Financial Position I The Statement of Profit or Loss 1 An asset should be classified as a … … … when it is: Expected to be realised in, or is held for sale or consumption in, the entity's normal operating cycle Held primarily for the purpose of being traded Expected to be realised within 12 months after the reporting date Cash or a cash equivalent which is not restricted in its use 2 … … …include tangible, intangible operating and financial assets of a long-term nature. Other terms with the same meaning can be used (eg 'fixed', 'long-term'). 3 … … ….of an entity is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. 4 A liability should be classified as a … … … when it is: Expected to be settled in the entity's normal operating cycle Due to be settled within 12 months of the reporting date Held primarily for the purpose of being traded 5 … … … is interest payable during the period. 6 … … … is increases in economic benefits during the accounting period in the form of inflows or enhancement of assets or decrease of liabilities that result in increases in equity, other than those relating to contributions from equity participants. 7 … … … contains a list of all the assets owned and all the liabilities owed by a business. 8 … … … are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants 9 … … … contains a record of income generated and expenditure incurred over a given period. TASK №2: TRUE/FALSE 1.Limited liability companies may be required by law to prepare and publish accounts annually. The form and content of the accounts may be regulated primarily by national legislation, but must also comply with International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). A True B False 2 Loan notes can be classified as current or non-current liabilities. A True B False 3 Financial statements must disclose a company's total expense for depreciation, if material. A True B False 4 A company must disclose by note details of all adjusting events allowed for in the financial statements. A True B False 5 A revaluation surplus arises when a non-current asset is sold at a profit. A True B False 6 The authorised share capital of a company is the maximum nominal value of shares and loan notes the company may issue. A True B False 7 IAS 10 Events after the reporting period requires all non-adjusting events to be disclosed in the notes to the financial statements. A True B False TASK №3: FOUNDATION LEVEL QUESTIONS 1 Which THREE of the following might appear as an item in a company’s statement of changes in equity? A. Surplus on revaluation of a property. B. Equity dividends paid. C. Equity dividends proposed. D. Issue of share capital. 2 Which TWO of the following would appear on a company’s statement of changes in equity? A. Issue of redeemable preference shares B. Issue of ordinary shares C. Revaluation of non-current assets D. Directors’ salaries 3 Where should dividends paid to equity shareholders be shown in a company’s published financial statements? A In other comprehensive income B In the statement of financial position C In the statement of changes in equity D In the statement of profit or loss 4 Which of the following should NOT appear in a company’s statement of profit or loss and other comprehensive income? A A loss after taxation for the financial year B Dividends received from investments C Gain on revaluation of a non-current asset D Dividends paid to shareholders during the year 5 Which of the following most accurately defines “going concern” in accordance with IAS°1 Presentation of Financial Statements? A The directors do not intend to liquidate the entity or to cease trading in the foreseeable future B The entity is able to pay its debts as and when they fall due C The directors expect the entity’s assets to yield future economic benefits D Financial statements have been prepared on the assumption that the entity is solvent and would be able to settle all liabilities in full in the event of being wound up 6 In the current financial year, Natamo has raised a loan for $3 million. The loan is repayable in 10 equal half-yearly instalments. The first instalment is due six months after the loan was received. How should the loan be reported in Natamo’s next financial statements? A As a current liability B As a long term liability C As part of equity D As both a current and a long term liability 7 When reporting profit for a period, companies are required to ensure that income and expenses are correctly classified. Which one of the following items will NOT be included in profit or loss for the period? A Interest payable B Dividend paid to equity shareholders C Depreciation charge for the year D Income tax expense TASK №4: INTERMEDIATE LEVEL QUESTIONS 1 Which of the following items may appear as current liabilities in a company's statement of financial position? 1 Revaluation surplus 2 Loan due for repayment within one year 3 Taxation 4 Preference dividend payable on redeemable preference shares A 1, 2 and 3 B 1, 2 and 4 C 1, 3 and 4 D 2, 3 and 4 2 Which of the following items are required to be disclosed by a limited liability company, either on the face of their main financial statements or in the notes, according to International Financial Reporting Standards? 1 Share capital 2 Finance costs 3 Dividends proposed 4 Depreciation and amortisation A 1, 2 and 3 only B 2, 3 and 4 only C 1, 2 and 4 only D All four items 3 Fruitz Co has a tax liability relating to 20X1 brought forward in 20X2 of $16,000. This liability is finally agreed at $18,500, which is paid in 20X2. Fruitz’s accountant estimates their tax liability for profits earned in 20X2 will be $20,000. What should the charge for taxation be in Fruitz's statement of profit or loss (SPL) for the year ended 31 December 20X2? A $22,500 B $15,000 C $17,500 D $20,000 4 Which of the following could appear as separate items in the statement of changes in equity required by IAS 1 Presentation of Financial Statements as part of a company’s financial statements? (1) Transfer to retained earnings (2) Loss on sale of investments (3) Proceeds of an issue of equity shares (4) Dividends proposed after the year end A 1 and 3 B 1 and 4 C 2 and 3 D 2 and 4 5 Monksford is preparing its financial statements for the year ended 31 December 20X6. Its draft trial balance shows the following balances: $ Income tax payable at 1 January 20X6 2,091 Income tax paid in full settlement of 20X5 liability 1,762 Income tax due for the year ended 31 December 20X6 is estimated to be $2,584. What is Monksford’s income tax expense in its statement of profit or loss for the year ended 31 December 20X6? A $1,269 B $2,255 C $2,584 D $2,913 6 When reviewing the draft financial statements, the Finance Director of Harlequin discovered that no provision had been made for consultancy fees incurred in respect of a proposed investment. How will the profit and net assets reported in the financial statements be affected when the provision is made? Profit Net assets A Increase Increase B Increase Decrease C Decrease Increase D Decrease Decrease 7 The draft 20X6 statement of financial position of Vale reported retained earnings of $1,644,900 and net assets of $6,957,300. It was then discovered that several items in opening inventory had been valued at selling price. This resulted in a $300,000 overstatement of opening inventory. The closing inventory had been correctly valued in the draft 20X6 financial statements. What are the correct figures for retained profit and net assets in the statement of financial position for 20X6? Retained earnings Net assets A $1,644,900 $6,657,300 B $1,644,900 $6,957,300 C $1,944,900 $6,657,300 D $1,944,900 $6,957,300 8 Fudge Co’s statement of profit or loss for the year ended 31 March 20X7 shows a profit for the year of $575,000. During the year, a dividend of $130,000 was paid to equity shareholders and land costing $600,000 was revalued to $640,000. What was the total comprehensive income for the year? A $40,000 B $485,000 C $575,000 D $615,000 TASK №5: ADVANCED LEVEL QUESTIONS 1 Which of the following could appear as separate items in the statement of changes in equity required by IAS 1 Presentation of Financial Statements as part of a company's financial statements? 1 Dividends on equity shares paid during the period 2 Loss on sale of investments 3 Proceeds of an issue of ordinary shares 4 Dividends proposed after the year end A 1, 3 and 4 only B 1, 2 and 4 only C 1 and 3 only D All four items 2 The summarised statement of financial position of Co A at 30 September 20X5 was as follows: Cost Aggregate Carrying depreciation amount $000 $000 $000 Non-current assets Land 2,000 nil 2,000 Buildings 1,500 450 1,050 Plant and equipment 2,800 1,000 1,800 _____ _____ _____ 6,300 1,450 4,850 _____ _____ Current assets 3,180 ______ Total assets 8,030 ——— Equity and liabilities Equity shares ($0.50 each) Share premium account Retained earnings Current liabilities Total equity and liabilities 1,500 400 4,060 _____ 5,960 2,070 ______ 8,030 ——— During the year ended 30 September 20X6 the company had the following transactions: (1) 1 November 20X5: The company made an issue to its members of one share for every three held (a rights issue) at a price of $1.50 per share. All the rights issue shares were taken up. (2) 1 December 20X5: Sale for $70,000 of a plant and equipment which had cost $1,000,000 and a carrying amount of $200,000. (3) 1 March 20X6: A bonus (capitalisation) issue of one share for every one held at that date, using the share premium account as far as possible for the purpose. (4) 1 June 20X6: Purchased a new factory block for $3,000,000 (including land $600,000). (5) 1 July 20X6: Purchased plant and equipment for $1,600,000. (6) 30 September 20X6: The company decided to revalue the land held at 30 September 20X5 from $2,000,000 to $2,500,000. The company depreciation policies are: Land no depreciation Buildings 2% per annum on cost, straight-line basis Plant and equipment 10% per annum on cost, straight-line basis Proportionate depreciation is allowed for in the year of purchase of an asset, with none in the year of disposal. Profit for the year was $370,000. Required: (a) Prepare a statement of changes in equity (as required by IAS 1 Presentation of Financial Statements) for the year ended 30 September 20X6. (b) Prepare for the company’s statement of financial position at 30 September 20X6, a note showing movements on non-current assets (as required by IAS 16 Property, Plant and Equipment). 3 The list of account balances of Co P contains the following items at 31 December: Dr Cr $ $ Opening inventory 3,432,000 Accounts receivable ledger balances 2,980,000 1,970 Accounts payable ledger balances 14,300 1,210,400 Prepayments 770,000 Cash at bank A 940,000 Overdraft at bank B 360,000 In the course of preparing the financial statements at 31 December, the need for a number of adjustments emerged, as detailed below: (1) Closing inventory amounted to $4,190,000 before allowing for the adjustments required by the following: (i) Some items included in closing inventory at cost of $16,000 were found to be defective and were sold after the reporting period for $10,400. Selling costs amounted to $600. (ii) Goods with a sales value of $88,000 were delivered to the wrong customer on 28 December. The goods were returned, in good condition, in January and subsequently dispatched to the correct customer. The cost of the goods was $66,000. (2) Accounts receivable amounting to $92,000 are to be written off. (3) A loss allowance for irrecoverable debts is to be made for 5% of accounts receivable. (4) The manager of the main selling outlet of Perseus is entitled to a commission of 2% of the company’s profit after charging that commission. The profit amounted to $1,101,600 before including the commission, and after adjusting for items (1) to (4) above. The manager has already received $25,000 on account of the commission due for the year to 31 December. Required: Show how the final figures for current assets should be presented in the statement of financial position at 31 December. 4 At 31 December 20X6 the following balances existed in the accounting records of Co A: Reference to notes $000 Equity shares, $0.50 (1) 1,000 Share premium account (1) 400 Suspense account (1) 800 Retained earnings (2) 7,170 Deferred development costs 570 Property, plant and equipment – cost depreciation at 31 December 20X5 Inventory at 31 December 20X6 Trade receivables Overdraft at bank Trade payables Loss allowance for trade receivables at 31 December 20X5 6% Loan notes (3) (4) (4) (5) 5,000 1,000 3,900 3,400 100 1,900 100 400 Notes (1) On 31 December 20X6 the company issued for cash 1,000,000 equity shares at a premium of $0.30 per share. The proceeds have been debited to cash and credited to the suspense account. (2) The profit for the year is included in the figure of $7,170,000 above but does not include adjustments for Notes (3) and (4) below. (3) Depreciation is to be provided at 25% per year on the reducing balance basis, on the property, plant and equipment. (4) Debts totalling $400,000 are to be written off and the loss allowance for trade receivables is to be adjusted to 3% of accounts receivable. (5) The 6% loan notes are due for redemption on 31 December 20X7 and the obligation is not to be refinanced. All interest due to 31 December 20X6 has been paid. Required: Prepare Co A’s statement of financial position as at 31 December 20X6 for publication, using the format in IAS 1 Presentation of Financial Statements. 5 You are presented with the following trial balance of Malright, a limited liability company, at 31 October 20X7. Dr Cr $'000 $'000 Buildings at cost 740 Buildings, accumulated depreciation, 1 November 20X6 60 Plant at cost 220 Plant, accumulated depreciation, 1 November 20X6 110 Land at cost 235 Bank balance 50 Revenue 1,800 Purchases 1,105 Discounts received 90 Returns inwards 35 Wages 180 Energy expenses 105 Inventory at 1 November 20X6 160 Trade payables 250 Trade receivables 320 Administrative expenses 80 Allowance for receivables, at 1 November 20X6 10 Directors' remuneration 70 Retained earnings at 1 November 20X6 130 10% loan notes 50 Dividend paid 30 $1 ordinary shares 650 Share premium account 80 3,280 3,280 Additional information as at 31 October 20X7: (a) Closing inventory has been counted and is valued at $75,000. (b) The items listed below should be apportioned as indicated. Cost of Distribution Administrative sales costs expenses % % % Discounts received – – 100 Energy expenses 40 20 40 Wages 40 25 35 Directors' remuneration – – 100 (c) An invoice of $15,000 for energy expenses for October 20X7 has not been received. (d) Loan note interest has not been paid for the year. (e) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables. Any expenses connected with receivables should be charged to administrative expenses. (f) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales. (g) Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses. (h) Income tax has been calculated as $45,000 for the year. Required Prepare the following financial statements for Malright in accordance with IAS 1 Presentation of financial statements: (a) The statement of profit or loss for the year ended 31 October 20X7 (b) The statement of changes in equity for the year ended 31 October 20X7 (c) The statement of financial position as at 31 October 20X7 TASK №1: DEFINITIONS 1 D An asset should be classified as a current asset when it is: Expected to be realised in, or is held for sale or consumption in, the entity's normal operating cycle Held primarily for the purpose of being traded Expected to be realised within 12 months after the reporting date Cash or a cash equivalent which is not restricted in its use 2 F Non-current includes tangible, intangible operating and financial assets of a long-term nature. Other terms with the same meaning can be used (eg 'fixed', 'long-term'). 3 A The operating cycle of an entity is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. 4 E A liability should be classified as a current liability when it is: Expected to be settled in the entity's normal operating cycle Due to be settled within 12 months of the reporting date Held primarily for the purpose of being traded 5 B Finance cost is interest payable during the period. 6 C Income is increases in economic benefits during the accounting period in the form of inflows or enhancement of assets or decrease of liabilities that result in increases in equity, other than those relating to contributions from equity participants. 7 H The Statement of Financial Position contains a list of all the assets owned and all the liabilities owed by a business. 8 G Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants 9 I The Statement of Profit or Loss contains a record of income generated and expenditure incurred over a given period. TASK №2: TRUE/FALSE 1A 2A 3A 4 B Adjusting events after the reporting period should be adjusted for, not just disclosed. 5 B A revaluation surplus arises when a non-current asset is revalued. 6 B Loan notes are not part of share capital. 7A TASK №3: FOUNDATION LEVEL QUESTIONS 1 A, B and D. Equity dividends are recorded on a declared basis, therefore equity dividends that are only proposed will not feature in the statement of changes in equity. 2 B and C. Redeemable shares do not affect equity. 3 C Dividends on equity shares are an appropriation of profit to shareholders. 4 D Dividends paid are recognised in the statement of changes in equity. 5 A According to IAS 1 going concern relates to whether the entity will continue in operational existence without liquidating or ceasing trading. 6 D As the loan is being repaid in six-monthly instalments some of the liability will be current and some will be non-current. 7 B Dividends paid is a movement in retained earnings (in the statement of changes in equity). Interest (a finance cost), depreciation and income tax are items of expense. TASK №4: INTERMEDIATE LEVEL QUESTIONS 1 D The revaluation surplus is part of equity. Dividends paid on redeemable preference shares are treated like interest paid on loans, and are therefore accrued for as finance costs in the financial statements. 2 D All of these items are disclosed, either on the face of the main financial statements or in the notes. Although dividends proposed are not included in the statement of changes in equity, they must still be disclosed in the notes. 3 A The under provision for the previous year of $2,500 plus the provision for the current year of $20,000 gives a charge to the SPL of $22,500. 4 A (2) would be in profit or loss (an expense) and (4) may only be disclosed. A transfer to retained earnings (e.g. for excess depreciation on a revalued asset) will be shown as a movement in the statement of changes in equity. Only dividends paid during the year and declared before the year end (i.e. a liability) are movements in equity. 5B Income tax account $ $ Cash 1,762 Balance b/fwd 2,091 Profit or loss (balancing figure) 2,255 Balance c/fwd 2,584 –––––– 4,346 4,346 6 D The accruals principle requires the company to recognise the cost in the period in which it was incurred. Therefore, expenses increases (reducing profits) and the liability to pay the fees will be included in the statement of financial position (reducing net assets). 7 B As the error has been corrected (closing inventory is correct), both retained profit and net assets are correct as stated in the draft statement of financial position. Tutorial note: Correction of the error would reduce the retained profit brought forward at the beginning of the current year (and therefore the prior year net assets) and increase the profit for the current year. These adjustments cancel each other out. 8D $ Profit from the statement of profit or loss 575,000 Unrealised gain on the land revaluation 40,000 ––––––– Total comprehensive income 615,000 ––––––– Tutorial note: This question tests understanding of the difference between (1) the statement of profit or loss and (2) the statement of comprehensive income. (1) summarises the revenues earned and expenses incurred during the financial period. (2) is an extension of (1); “other comprehensive income” includes unrealised gains (e.g. on the revaluation of tangible assets). As a distribution of profit, equity dividends are recognised in the statement of changes in equity. TASK №5: ADVANCED LEVEL QUESTIONS 1 C The loss on sale of investments will have been recognised in the statement of profit or loss and other comprehensive income. Dividends proposed after the year end are disclosed in the notes, they are not recognised in the financial statements. 2 (a) Statement of changes in equity: At 1 October 20X5 Rights issue Bonus issue Total comprehensive income for the year Share capital $000 1,500 500 2,000 _____ At 30 September 20X6 4,000 Share premium $000 400 1,000 (1,400) Revaluation surplus $000 500 _____ 500 _____ Nil (b) Movements on non-current assets Land Building Retained earnings $000 4,060 (600) $000 5,960 1,500 – 370 _____ 3,830 870 _____ 8,330 Plant and Total equipment $000 $000 $000 $000 2,000 600 1,500 2,400 2,800 1,600 (1,000) 500 _____ 3,100 _____ _____ 3,900 _____ _____ 3,400 _____ 6,300 4,600 (1,000) 500 _____ 10,400 _____ Depreciation At 1 October 20X5 Charge for the year Disposals Nil Nil 450 46 At September 20X6 _____ Nil _____ _____ 496 _____ 1,000 220 (800) _____ 420 _____ 1,450 266 (800) _____ 916 _____ 3,100 3,404 2,980 9,484 Cost At 1 October 20X5 Additions Disposals Revaluation At 30 September 20X6 Carrying amount At 30 September 20X6 Calculation of depreciation charges Buildings $000 30 16 ___ 46 180 40 ___ 220 2% × $1,500,000 2% × $2,400,000 × 4 / 12 Plant and equipment 10% × $1,800,000 10% × $1,600,000 × 3 / 12 3 Current assets in the statement of financial position Inventory (W1) $ 4,249,800 Total Trade receivables (W2) Prepayments Cash at bank (Bank A only) WORKINGS (1) Inventory 2,674,300 773,400 940,000 $ As originally stated (i) Reduction to net realisable value Original cost Net realisable value (10,400 – 600) $ 4,190,000 16,000 9,800 _____ (ii) Goods returned at cost (2) Trade receivables As originally stated Accounts receivable ledger Less: Goods returned (6,200) 66,000 _________ 4,249,800 2,980,000 88,000 _________ 2,892,000 Less: Debts written off 92,000 _________ 2,800,000 Less: Allowance (5% × $2,800,000) 140,000 _________ 2,660,000 Accounts payable ledger balances 14,300 _________ 2,674,300 _________ Tutorial notes: The delivery of goods to the wrong customer is not a sale in the current year. Revenue (and profit) can only be recognised in the following year, when the goods are transferred to the correct customer. Strictly speaking, where debit balances on accounts payable represent an asset (e.g. advance payments) they should be reclassified as trade receivables (as above) or prepayments. However, in practice (especially when such balances are immaterial) they would most likely be “netted off” against the credit balances. The same is true of credit balances on accounts receivable. Note that an overdraft, even with the same bank, can only be offset against cash at bank if there is a legal right to offset the liability against the asset. (3) Prepayments $ $ As originally stated 770,000 Payments on account 25,000 Less: Commission due ( 2 / 102 × $1,101,600) 21,600 ______ 3,400 _______ 773,400 4 (a) Statement of financial position as at 31 December 20X6 Assets $000 Non-current assets Property, plant and equipment (W1) 3,000 Development costs 570 ––––– Current assets Inventory 3,900 Receivables (W2) 2,910 –––––– Equity and liabilities Share capital Share premium account Retained earnings (W3) Current liabilities Trade payables Bank overdraft 6% Loan notes WORKINGS (1) Property, plant and equipment Cost per list of balances Less: Depreciation at 31 December 20X5 Less: 25% × 4,000,000 (2) Receivables Per list of balances Less: Written off Less: Allowance (3) Retained earnings Per list of balances $000 3,570 6,810 –––––– 10,380 –––––– 1,500 700 5,780 ––––– 7,980 1,900 100 400 ––––– 2,400 –––––– 10,380 –––––– $000 5,000 1,000 ––––– 4,000 1,000 ––––– 3,000 ––––– 3,400 400 ––––– 3,000 90 ––––– 2,910 ––––– 7,170 Less: Depreciation Irrecoverable debts Allowance for trade receivables 1,000 400 (10) –––– 1,390 ––––– 5,780 ––––– (b) IAS 38 disclosure Movements on deferred development expenditure during year $000 550 120 –––– 670 (100) –––– 570 –––– Balance at 31 December 20X5 Expenditure in 20X6 Amortisation for year Balance at 31 December 20X6 Total expenditure on research and development charged to profit or loss $000 85 100 –––– 185 –––– Current expenditure Amortisation 5 (a) The statement of profit or loss for the year ended 31 October 20X7 $'000 Revenue (W4) 1,765 Cost of sales (W1) (1,343) Gross profit 422 Distribution costs (W1) (80) Administrative expenses (W1) (192) Profit before interest and tax 150 Finance cost: 50,000 × 10% (5) Profit before taxation 145 Income taxes (45) Profit for the year 100 (b) The statement of changes in equity for the year ended 31 October 20X7 Share capital $000 650 Share premium $000 80 Retained earnings $000 130 Balance at 1 Nov 20X6 Total comprehensive income for the year 100 Dividends paid (30) Balance at 31 Oct 20X7 650 80 200 (c) The statement of financial position as at 31 October 20X7 $'000 Non-current assets Total $000 860 100 (30) 930 $'000 Tangible assets (W3) Current assets Inventory Trade receivables (320 – 16) 966 75 304 379 Equity and liabilities 1,345 Equity $1 ordinary shares Share premium Retained earnings (part (b)) 650 80 200 930 Non-current liabilities 10 % loan notes Current liabilities Trade payables Bank overdraft Tax payable Loan interest payable Energy expense accrual 50 250 50 45 5 15 Total equity and liabilities Workings 1 Cost of sales/distribution costs/administration expenses Cost of sales Purchases Discounts received Wages (40:25:35) Energy expenses ($105 + $15) (40:20:40) Opening inventory Administrative expenses Increase in allowance for receivables (W2) Director's remuneration Closing inventory Depreciation – buildings (30:30:40) (W3) Depreciation – plant (W3) 365 1,345 Distribution cost $'000 1,105 $'000 Administrative expenses $'000 72 45 (90) 63 48 160 24 48 80 6 70 (75) 11 11 15 22 1,343 80 192 2 Allowance for receivables Trade receivables at 31 October 20X7 Allowance needed: $320 × 5% Allowance at 1 November 20X6 Increase 3 Tangible non-current assets $'000 320 16 10 6 Cost Accumulated dep'n at 1.11.X6 Charge for year Buildings: $740,000 × 5% Plant: (220 – 110) × 20% Carrying amount at 31.10.X7 Land $000 Building $000 Plant $000 Total $000 235 - 740 60 220 110 1,195 170 37 37 – 97 22 132 22 229 235 643 88 966 4 Revenue Per trial balance Less returns inward $'000 1,800 (35) 1,765