Illustrations of accounting policies-financial statement, Financial Accounting

Assignment Help:

Illustrations of Accounting Policies

A Ltd., has decided to change its policy of writing off borrowing costs to capitalizing the same. As at 31st December, 2003, the company had written off borrowing costs amounting to £200,000. During the year ended 31/12/04.  The company reported profit for the period of £450,000 but after charging borrowing costs of £50,000.  As at 31/12/03 the retained profits were £1,500,000. Other transactions were:-

•    Transfer from revaluation reserve on sale of PPE - £40,000
•    Transfer from retained profits to general reserve - £50,000
•    Interim dividends paid - £200,000

Required: 
Prepare the statement of changes in equity extract for the year-ended 81/12/04

 

Retained profits

 

£

Balance as at 1.1.2004

1,500,000

Change in accounting policy

  200,000

Balance as restated

1,700,000

Transfer from revaluation reserve on sale of PPE

40,000

Profit for the period (450,000 + 50,000)

500,00

Transfer to general reserve

(50,000)

Interim dividends paid

(200,000)

Balance as at 31/12/2004

1,990,000


Related Discussions:- Illustrations of accounting policies-financial statement

Earn profit or incurred loss , Assure  you have just  started a Mobile sto...

Assure  you have just  started a Mobile store. You sell mobile sets and  currencies of Airtel, Vodaphone, Reliance and BSNL.  Take five transactions  and prepare a position stateme

Homework help, I am needing homework help on my Principles to Accounting 1,...

I am needing homework help on my Principles to Accounting 1, but don''t know how much you guys charge

FASB and IASB - Revenue recognition, Q1. what are the roles and objective o...

Q1. what are the roles and objective of FASB and IASB? Q2.what are the main reason for the joint project undertaken by the FASB and IASB? Q3.state some critics by individual and th

Prepare three years of monthly cash budgets for company, 1. Prepare three y...

1. Prepare three years of monthly cash budgets, yearly income statements, and yearly balance sheets for the jewelry business Daisy & Company. General Information: 1. Th

How many shares are now outstanding, 1. Jepsen Corp had the following trans...

1. Jepsen Corp had the following transactions relating to shares of stock: • Issued 1,000 shares • Purchased 100 shares • Re-issued 50 shares • Declared and distributed a 2-1 stock

Comprehensive basis of accounting, Comprehensive Basis of Accounting (OCBOA...

Comprehensive Basis of Accounting (OCBOA) - Consistent accounting basis other than GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) used for financial reporting. Illustrations compr

Balance Sheet, What is the function of balance sheet

What is the function of balance sheet

Investment Property, What are the positive and negative critiques of invest...

What are the positive and negative critiques of investment property

Prepare tally & co.''s journal, Tally & Co. incurred a pretax operating los...

Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for both financial reporting and income tax purposes. However, it expects to be profitable

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd