7. 2080 GIE Set A Q.No. 20

A trial balance of a limited company as on 31st Asar is given below.

Particulars	Dr. (Rs.)	Particulars	Cr. (Rs.)
Investment	1,20,000	Sales	2,01,000
Debtors	22,000	Dividend received	22,000
Goodwill	32,200	Creditors	40,000
Bank balance	16,000	Share capital	2,00,000
Interest expense	7,500	Loan	1,50,000
Opening stock	8,000
Purchase	92,000
Equipment	2,00,000
Promotion expenses	15,300
Salary expenses	50,000
General expenses	30,000
Repair expense	8,000
Stationery	12,000
Total	6,13,000	Total	6,13,000

Required (Option-1): a) Profit or loss statement based on NFRS. b) Statement of financial position based on NFRS.

a. Statement of Profit or Loss (For the year ended 31st Asar)

Particulars	Amount (Rs.)	Amount (Rs.)
Revenue
Sales		2,01,000
Dividend received (Other income)		22,000
Total Revenue		2,23,000
Cost of Goods Sold
Opening stock	8,000
Add: Purchases	92,000
Less: Closing stock	(1,00,000)
Cost of Goods Sold		0
Employee benefits
Salary expense	50,000
Add: Salary payable (accrued)	5,000
Total Employee benefits		55,000
Depreciation expense		10,000
Finance costs
Interest expense		7,500
Other expenses
Promotion expenses	15,300
General expenses	30,000
Repair expense	8,000
Stationery	12,000
Goodwill written off	12,200
Total Expenses		1,50,000
Profit before tax		73,000
Less: Provision for tax		15,000
Profit for the year (net profit)		58,000

Notes: Closing stock is taken to arrive at COGS. Salary payable is accrued and included in employee benefits. Goodwill written off is treated as an expense in the statement of profit or loss.

b. Statement of Financial Position (as at 31st Asar)

Assets	Amount (Rs.)	Liabilities & Equity	Amount (Rs.)
Non-current assets
Equipment (cost)	2,00,000	Loan (non-current liability)	1,50,000
Less: Accumulated depreciation (current year)	(10,000)
Carrying amount — Equipment	1,90,000
Goodwill	32,200	Share capital	2,00,000
Less: Goodwill written off	(12,200)
Carrying amount — Goodwill	20,000	Retained earnings (Profit for the year)	58,000
Investment (non-current)	1,20,000
Total non-current assets	3,30,000	Total equity	2,58,000
Current assets
Closing stock	1,00,000	Current liabilities
Debtors	22,000	Creditors	40,000
Bank balance	16,000	Salary payable	5,000
Total current assets	1,38,000	Provision for tax	15,000
Total Assets	4,68,000	Total Liabilities & Equity	4,68,000

Working summary (key points):
• Profit before tax = Total revenue (Rs. 2,23,000) − Total expenses (Rs. 1,50,000) = Rs. 73,000.
• Profit after tax = 73,000 − Provision for tax (15,000) = Rs. 58,000.
• Equipment carrying amount = 2,00,000 − 10,000 = Rs. 1,90,000. Goodwill = 32,200 − 12,200 = Rs. 20,000.