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Question 1: You are presented with the following trial balance of Winnie Invest...

Oct 6, 2024

Question 1: You are presented with the following trial balance of Winnie Investment Holdings Limited, a limited liability company, as at 31 October 2024. Dr. Cr.

'000

'000 Sales - 1,170,828 Sales return 22,410 - Inventory as at 1 November 2023 78,300 - Purchases 680,040 - Distribution costs 67,500 - Administrative expenses 267,030 - Finance costs 6,480 - Land at cost 108,000 - Trade receivables 248,400 - Cash 23,418 - Trade payables - 76,500 Bank overdraft - 16,020 Bank loan - 76,680 Share capital - 78,300 Retained earnings as at 1 November 2023 - 83,250 1,501,578 1,501,578Additional information as at 31 October 2024: 1. Inventory as at 31 October 2024 was valued at

82,818,000. 2. Land was revalued as at 31 October 2024 to

139,500,000. 3. Tax of $5,580,000 is to be provided for the year. 4. The bank loan was to be repaid more than 12 months. Required: a. Prepare a statement of profit or loss and other comprehensive income for the year ended 31 October 2024 and a statement of financial position as at 31 October 2024 of Winnie Investment Holdings Limited in accordance with "HKAS 1 Presentation of Financial Statements".

To prepare the statement of profit or loss and other comprehensive income for Winnie Investment Holdings Limited for the year ended 31 October 2024, and the statement of financial position as at that date, we need to follow a structured approach. Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 October 2024 1. Revenue: - Sales:

1,170,828,000 - Less: Sales Returns:

22,410,000 - Net Sales: $1,148,418,000 2. Cost of Goods Sold (COGS): - Opening Inventory:

78,300,000 - Add: Purchases:

680,040,000 - Less: Closing Inventory: $82,818,000 - COGS: $675,522,000 3. Gross Profit: - Gross Profit:

1,148,418,000 -

675,522,000 = $472,896,000 4. Operating Expenses: - Distribution Costs:

67,500,000 - Administrative Expenses:

267,030,000 - Total Operating Expenses: $334,530,000 5. Operating Profit: - Operating Profit:

472,896,000 -

334,530,000 = $138,366,000 6. Finance Costs: - Finance Costs: $6,480,000 7. Profit Before Tax: - Profit Before Tax:

138,366,000 -

6,480,000 = $131,886,000 8. Tax Expense: - Tax: $5,580,000 9. Profit for the Year: - Profit for the Year:

131,886,000 -

5,580,000 =

126,306,000 Other Comprehensive Income: - Revaluation of Land:

139,500,000 -

108,000,000 =

31,500,000 Total Comprehensive Income: - Total Comprehensive Income:

126,306,000 +

31,500,000 = $157,806,000 --- Statement of Financial Position as at 31 October 2024 Assets: 1. Non-Current Assets: - Land (revalued):

139,500,000 - Trade Receivables:

248,400,000 - Cash: $23,418,000 - Total Non-Current Assets:

139,500,000 +

248,400,000 +

23,418,000 =

411,318,000 2. Current Assets: - Inventory: $82,818,000 - Total Current Assets: $82,818,000 Total Assets:

411,318,000 +

82,818,000 = $494,136,000 --- Liabilities: 1. Non-Current Liabilities: - Bank Loan: $76,680,000 2. Current Liabilities: - Trade Payables:

76,500,000 - Bank Overdraft:

16,020,000 - Tax Payable: $5,580,000 - Total Current Liabilities:

76,500,000 +

16,020,000 +

5,580,000 =

98,100,000 Total Liabilities:

76,680,000 +

98,100,000 = $174,780,000 --- Equity: 1. Share Capital:

78,300,000 2. Retained Earnings:

83,250,000 +

126,306,000 (Profit for the Year) =

209,556,000 3. Revaluation Surplus: $31,500,000 Total Equity:

78,300,000 +

209,556,000 +

31,500,000 =

319,356,000 --- Final Statement of Financial Position - Total Assets: $494,136,000 - Total Liabilities: $174,780,000 - Total Equity: $319,356,000 This structure follows the HKAS 1 guidelines for presenting financial statements. If you have any questions or need further clarification on any part, feel free to ask!