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Statement of Profit or Loss and Other Comprehensive Income Trial Balance For The Year Ended 31 December 20X1. Item Debit ( ) Credit ( )

The document provides financial information from Sodwana's trial balance for the year ended 31 December 20X1. It includes a statement of profit or loss and other comprehensive income presented in two ways: by nature and by function. The statement shows revenue of €12,000 and total expenses of €10,000, resulting in a profit before tax of €2,500.

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Ezra Mikah Caalim
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32 views3 pages

Statement of Profit or Loss and Other Comprehensive Income Trial Balance For The Year Ended 31 December 20X1. Item Debit ( ) Credit ( )

The document provides financial information from Sodwana's trial balance for the year ended 31 December 20X1. It includes a statement of profit or loss and other comprehensive income presented in two ways: by nature and by function. The statement shows revenue of €12,000 and total expenses of €10,000, resulting in a profit before tax of €2,500.

Uploaded by

Ezra Mikah Caalim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Statement of profit or loss and other comprehensive income

Below is an extract of Sodwana’s trial balance for the year ended 31 December 20X1.

Item Debit (€) Credit (€)


Revenue 12,000
Finance income 250
Profit on sale of obsolete machinery 250
Raw materials purchased 3,000
Raw materials inventory – opening 2,000
Raw materials inventory – closing (SCI Acct.) 1,000
Work in progress – opening 1,000
Work in progress – closing (SCI Acct.) 1,500
Finished goods inventory – opening 3,000
Finished goods inventory – closing (SCI Acct.) 3,500
Closing inventory (SFP Acct.) 6,000
Wages 1,500
Salaries – factory supervisors 1,000
Salaries – administration personnel 500
Commissions – sales representatives 1,000
Depreciation of property, plant and equipment 750
Depreciation of administration office furniture 250
Depreciation of distribution vehicles 500
Warehouse rental (factory is its owned property) 500
Power costs 250
Telephone costs 250
Stationery costs 250
Insurance premiums 250
Property, plant and equipment – net 3,000
Total equity 6,500
Total 25,000 25,000
IAS 1 PRESENTATION OF FINANCIAL STATEMENTS
Extract of Statement of Profit or Loss and Other Comprehensive Income Presentation

1. By nature
€
Revenue 12,000

Other income (1) 250


Finance income (2) 250
Changes in inventories of finished goods and work in progress (3) (1,000)
Raw materials and consumables used (4) 4,000
Staff costs (5) 4,000
Depreciation and amortization expense (6) 1,500
Other expenses (7) 1,500
Total expenses (10,000)
Profit before tax 2,500
Income tax expense 0
Profit for the year from continuing operations 2,500
Loss for the year from discontinued operations 0
PROFIT FOR THE YEAR 2,500

Workings:

(1) €250 profit on sale of assets


(2) €250 interest
(3) €1,000 opening work in process (WIP) – €1,500 closing WIP + €3,000 opening finished goods
– €3,500 closing finished goods
(4) €3,000 purchases + €2,000 opening raw materials – €1,000 closing raw materials
(5) €1,500 wages + €1,000 factory salaries + 500 administration salaries + €1,000 commissions
(6) €750 plant + €250 furniture + €500 vehicles
(7) €500 rental + €250 power + €250 telephone + €250 stationery + €250 insurance
IAS 1 PRESENTATION OF FINANCIAL STATEMENTS
Extract of Statement of Profit or Loss and Other Comprehensive Income Presentation

2. By function
US$
Revenue 12,000
Cost of sales (1) (6,250)
Gross Profit 5,750

Other income (2) 250


Finance Income (3) 250
Distribution costs (4) (2,450)
Administrative expenses (5) (1,300)
Other expenses 0
Profit before tax 2,500
Income tax expense 0
Profit for the year from continuing operations 2,500
Loss for the year from discontinued operations 0
PROFIT FOR THE YEAR 2,500

Workings:

(1) €1,000 opening WIP – €1,500 closing WIP + €3,000 opening finished goods – €3,500 closing
finished goods + €3,000 purchases + €2,000 opening raw materials – €1,000 closing raw
materials + (€1,500 wages x 80%) + €1,000 factory salaries + €750 plant depreciation + (€250
power x 60%) + (€250 insurance x 60%)

(2) €250 profit on sale of assets

(3) €250 finance income

(4) (€1,500 wages x 20%) + €1,000 commissions + €500 vehicle depreciation + €500 warehouse
rental + (€250 power x 30%) + (€250 insurance x 30%)

(5) €500 administration salaries + €250 furniture depreciation + €250 telephone + €250
stationery + (€250 power x 10%) + (€250 insurance x 10%)

Notes:

a) Wages—80% related to production staff wages and 20% related to distribution staff wages.
b) Power and Insurance—60% related to production, 30% related to distribution, and 10% related to
administration.

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