Reference no: EM132619569

Date: 31 August 2020 SASOON Ltd places the following information at your disposal:

Trial balance on 30 June 2020 N$

Vehicle at cost 79,450

Equipment at cost 29,200

Accumulated depreciation:

Vehicles 14,600

Accumulated depreciation:

Equipment 9,300

Debtors control 12,745

Allowance for credit losses 540

SARS (income tax) 70,600(dr)

Retained earnings (1 July 2019) 8,047

Sales 904,600

Commission received 6,400

Auditors remuneration (N$2,000 for fees and N$400 for costs) 2,400

Bank charges 206

Salaries 16,000

Irrecoverable debt 493

Loss on sale of asset 702

Distribution costs 880

Interest on bank overdraft 273

Interest on mortgage 2,500

Sales returns 840

Ordinary dividends 11,050

Directors remuneration (for executive directors) 7,450

Dividends received on listed investment 1,075

Electricity and water 2,350

Gross profit 184,140

Classified as administrative expenditure

The following information must still be taken into consideration:

1. One of the non-executive directors has not yet received his remuneration of N$1,500.

2. Account received from the municipality for water and electricity - not yet paid - N$124.

3. The accounting policy of the company stipulates, among others that depreciation on vehicles should be calculated at 10% per annum on cost of vehicles and at 15% per annum on the carrying value of equipment.

4. Additional credit losses of N$132 must be written off. The allowance for credit losses must be adjusted to N$450.

5. A final dividend of 63c per share was declared.

6. The normal income tax for the accounting period amounts to N$72,050

7. The company is registered with 100,000 ordinary shares of N$5 each, of which 50,000 ordinary shares were issued.

Required

Question 1. Prepare the statement of profit or loss and other comprehensive income of the company according to the function of expenditure method for the year ended 30 June 2020 to comply with the requirements of IAS 1.

Question 2. Prepare the statement of financial position as at 30 June 2020 to comply with the requirements of IAS 1.