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Monday, November 26, 2012
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AMBLER DIVERSIFICATION LIMITEDINCOME STATEMENT
| Particulars | Note | Amount Rs. |
Sales
Less: Cost of Goods Sold | | 17,000,000
5,700,000 |
| Gross Profit | | 11300000 |
Less: Administrative Expenses
Less: Selling Expenses | | 2,600,000
4,000,000 |
| Operating Profit | | 4,700,000 |
| Other Expenses | | Nil |
| Earning Before Interest and Tax (EBIT) | | 4,700,000 |
| Income Tax (30%) | | 1,410,000 |
| Profit After Tax | | 3,290,000 |
Please note that the one time occurance of an event and loss thereof cannot be shown on the income statement body as it has to show income and an accident which might have caused loss, is not part of the normal operation of the company that is why it will be separately shown (Fin621 Handout Page 38, special items).
AMBLER DIVERSIFICATION LIMITEDSTATEMENT OF RETAINED EARNINGS
| Particulars | Notes | Amount Rs. |
| Retained Earnings for the year 2010 | | 11,000,000 |
| Overstatement due to Error | | 745,000 |
| Retained Earnings (correction of Error) | | 10255000 |
| Difference due new inventory accounting method | | (4,800,000) |
| Retained Earning at the start of 2011 | | 5,455,000 |
| Net Loss on Disposal of Assets | | (300,000) |
| Expenses on Clean Up Process | | (350,000) |
| Net Retained Earnings at the start of 2011 | | 4,805,000 |
| Income after Tax for 2011 | | 3,290,000 |
| Total Retained Earnings at the end of 2011 without payment of dividend | | 8,095,000 |
AMBLER DIVERSIFICATION LIMITEDINCOME STATEMENT
| Particulars | Note | Amount Rs. |
Sales
Less: Cost of Goods Sold | | 17,000,000
5,700,000 |
| Gross Profit | | 11300000 |
Less: Administrative Expenses
Less: Selling Expenses | | 2,600,000
4,000,000 |
| Operating Profit | | 4,700,000 |
| Other Expenses | | |
loss on sale of asset 1,700,000
profit before tax (EBT) 3,000,000
pretax gains(gain on asset sale) 14,00,000
4,400,000
income tax(30%) 1,3,20,000
profit after tax
3,080,000
