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    Jalib Industruies Q

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    michealcorleone1923
    This document provides financial statements and supporting information for Jalib Industries Limited for the years ended December 31, 2015 and 2014. It asks the reader to prepare statements of cash flows for the company for the year ended December 31, 2015 using both the direct and indirect methods in accordance with international accounting standards. The financial statements include statements of financial position, profit or loss, and supporting details about property and equipment, depreciation, trade debts, taxes, dividends, and other items.

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    Jalib Industruies Q

    Uploaded by

    michealcorleone1923
    2 views2 pages
    This document provides financial statements and supporting information for Jalib Industries Limited for the years ended December 31, 2015 and 2014. It asks the reader to prepare statements of cash flows for the company for the year ended December 31, 2015 using both the direct and indirect methods in accordance with international accounting standards. The financial statements include statements of financial position, profit or loss, and supporting details about property and equipment, depreciation, trade debts, taxes, dividends, and other items.

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    CA

    Original Title

    Jalib Industruies Q (1)

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    This document provides financial statements and supporting information for Jalib Industries Limited for the years ended December 31, 2015 and 2014. It asks the reader to prepare statements of cash flows for the company for the year ended December 31, 2015 using both the direct and indirect methods in accordance with international accounting standards. The financial statements include statements of financial position, profit or loss, and supporting details about property and equipment, depreciation, trade debts, taxes, dividends, and other items.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2 views2 pages

    Jalib Industruies Q

    Uploaded by

    michealcorleone1923
    This document provides financial statements and supporting information for Jalib Industries Limited for the years ended December 31, 2015 and 2014. It asks the reader to prepare statements of cash flows for the company for the year ended December 31, 2015 using both the direct and indirect methods in accordance with international accounting standards. The financial statements include statements of financial position, profit or loss, and supporting details about property and equipment, depreciation, trade debts, taxes, dividends, and other items.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Certificate in Accounting and Finance Stage Examinations

    School of January , 2022


    Accountancy 45 minutes – 23 marks
    Additional reading time – 5 minutes

    Financial Accounting and Reporting 1

    Q.1 Jalib Industries Limited (JIL) is a listed company. The relevant information contained in the financial
    statements for the year ended December 31, 2015 is as follows:
    Statement of Financial Position
    2015 2014
    Rupees in million
    Non-current assets
    Property, plant and equipment 129.40 100.60
    Capital work in progress 22.50 37.00
    151.90 137.60
    Current assets
    Stock in trade 531.80 451.00
    Trade debts 28.50 24.70
    Prepayments and other receivables 35.20 42.00
    Cash and bank 12.00 3.00
    607.50 520.70
    759.40 658.30
    Equity
    Issued, subscribed and paid-up capital 396.00 300.00
    Share premium 45.00 12.00
    Unappropriated profit 142.60 163.00
    583.60 475.00
    Non-current liabilities
    Gratuity payable 38.60 27.50
    Long term loans 80.00 100.00
    118.60 127.50
    Current liabilities
    Current portion of long term loans 18.00 20.00
    Trade Creditors 20.00 18.00
    Accruals and other payables 16.20 16.40
    Dividend payable 3.00 1.40
    57.20 55.80
    759.40 658.30

    Statement of profit or loss 2015 Rs. in million


    Sales 2,535.00
    Cost of goods sold (1,774.50)
    Gross profit 760.50
    Operating expenses (554.00)
    Financial charges (10.50)
    Loss on sale of fixed assets (4.60)
    (569.10)
    Profit before tax 191.40
    Tax expense (106.80)
    Profit after tax 84.60

    The following supporting information is available:


    a) During the year, an amount of Rs.42 million was transferred from capital work in progress to
    property, plant and equipment.
    b) The company sold property, plant and equipment having book value of Rs.15 million for Rs.10.4
    million.
    c) Depreciation for the year amounted to Rs.27.7 million. 60% of the depreciation is charged to cost
    of sales.
    d) Trade debts written off during the year amounted to Rs.1 million. It is the policy of the company
    to maintain the provision for doubtful debts at 5% of trade debts.
    e) Prepayments and other receivables include advance tax of Rs.1.4 million (2014: Rs.2.2 million).
    f) Provision for gratuity made during the year amounted to Rs.15.5 million.
    g) Accruals and other payables include accrued financial charges amounting to Rs.5 million (2014:
    Rs.6 million).
    h) On January 15, 2016, the company declared final dividend for the year ended December 31, 2015
    comprising 7.5% (2014: 35%) cash dividend and 12.5% (2014:0%) bonus shares, for its ordinary
    shareholders.

    Required:
    Prepare a statement of cash flow for the year ended December 31, 2015 using direct method in
    accordance with the requirements of International Accounting Standards. (23)
    Additional requirement:
    Prepare a statement of cash flow for the year ended December 31, 2015 using indirect method in
    accordance with the requirements of International Accounting Standards.

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