The trial balance of Dillydally Ltd at 30 April 2015 is as follows:$ $

Revenue , 756 000Purchases 446 000Inventory at 1 May 2014 32 000Sales staff salaries and commission 83 000Administration salaries 57 000Carriage outwards 24 000General expenses 45 000Interest on debentures 5 000Goodwill at cost 100 000Freehold premises at cost 240 000Provision for depreciation offreehold premises 71 000Delivery vans at cost 75 000Provision for depreciation of delivery vans 30 000Office machinery at cost 35 000Provision for depreciation of office machinery 10 000Trade receivables 60 000Trade payables 42 000Cash and Cash equivalent 66 000100 000 ordinary shares of $1 100 00080 000 6% non-redeemablepreference shares of $1 80 00010% debentures 2018/2020 100 000Share Premium account - 30 000General Reserve 40 000Retained profit brought forward at 1 May 2014 13 900Interim dividends paid:preference 2 400ordinary 2500

1 272 900 1 272 900Further information1. Inventory at 30 April 2015: $54 000.2. Depreciation for the year ended 30 April 2015 is to be provided as follows:Freehold warehouse $4000, Freehold offices $12 000, Delivery vehicles: 20% on cost, Office machinery: 20% on cost3. Debenture interest is payable half-yearly on 1 May and 1 November.4. Provision is to be made for taxation on the year's profits in the sum of $25 000.5. A transfer of $20 000 is to be made to General Reserve.

6. The directors have recommended a final dividend on the ordinary shares of $0.05 per share.Required(a) Prepare Dillydally Ltd's Income Statement for the year ended 30 April 2015 in as much details as possible.(b) Prepare Dillydally Ltd's Statement of Changes in Equity for the year ended 30 April 2015.(c) Prepare Dillydally Ltd's Statement of Financial Position at 30 April 2015.

Answer(a) Dillydally LtdIncome Statement for the year ended 30 April ‘15 $ $ $Revenue 756 000Cost of Sales: Inventory at 1 May 2014 32 000Purchases 446 000

478 000Inventory at 30 April 2015 54 000 424 000Gross profit 332 000Selling and distributionSales staff salaries and commissions 83 000Carriage out 24 000Depreciation.-warehouse 4 000 delivery vehicles 15 000 126 000AdministrationAdministrative salaries 57 000General expenses 45 000Depreciation: office premises 12 000 office machinery 7 000 121 000 247 000Profit from operations 85 000Debenture interest 10 000Profit before taxation 75 000Taxation 25 000Profit for the year attributable to equity holders 50 000

b) Dillydally LtdStatement of Changes in Equity for the year ended 30 April 2015

Share Share Capital Retained Totalcapital premium reserve earnings equity$ $ $ $ $

Balance at start of year 180 000 30 000 40 000 13900 263 900Profit for the year 50 000 50 000Dividends paid (4 900) (4 900)Transfer to general reserve 20 000 (20 000) _Balance at end of year 180 000 30 000 60 000 39 000 309 000

(c)Dillydally LtdStatement of Financial Position at 30 April 2015Assets $Non-current assetsIntangible - Goodwill 100 000Tangible — Property, plant and e quipment 201000

301 000Current assetsInventories 54 000Trade receivables 60 000Cash and cash equivalents 66 000

180 000Total assets 481 000

Equity and LiabilitiesCapital and reservesShare capital 180 000Share premium 30 000Reserves 60 000Retained earnings 39 000 .

309 000Non-current liabilitiesDebentures 100 000Current liabilitiesTrade payables 42 000Other payables 5 000Current tax payable 25 000

72 000481 000