Exam focus point. This question provides excellent practise of the knowledge and skills required to tackle long questions that may appear in Section B of the paper-based exam. However, the question is slightly longer, and the mark allocations lower,
than a typical 15 mark exam question. Use this question to practise the techniques required to score well in longer Section B
financial statement questions.
You have also been provided with the following information:
(a) Inventory at 31 October 20X6 was valued at $275,000 based on its original cost. However, $45,000 of this inventory has been in the warehouse for over two years and the directors have agreed to sell it in November 20X6 for a cash price of $20,000.
(b) The marketing expenses include $5,000 which relates to November 20X6.
(c) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables.
(d) There are wages and salaries outstanding of $40,000 for the year ended 31 October 20X6.
(e) Buildings are depreciated at 5% of cost. At 31 October 20X6 the buildings were professionally valued at $1,800,000 and
the directors wish this valuation to be incorporated into the financial statements.
(f) Depreciation is to be charged as follows:
(i) Motor vehicles at 20% of carrying amount
(ii) Furniture and equipment at 20% of cost
(g) No dividends have been paid or declared.
(h) Tax of $150,000 is to be provided for the year.
(i) During October 20X6 a bonus issue of one for ten shares was made to ordinary shareholders. This has not been entered
into the books. The share premium account was used for this purpose.
【简答题】
The statement of profit or loss for the year ended 31 October 20X6
