Page 20 - 1. COMPILER QB - INDAS 1

Operating Costs 2,200
Depreciation 999
Total Expenses 4,399
Profit before tax 1,101
Tax Expense (150)
Profit after tax 951
Notes to Accounts:

Note 1: Reserves and surplus (INR in millions)
Capital Reserve 500
Surplus from P & L

Opening Balance 49
Additions 951 1,000
Reserve for foreseeable loss 500
Total 2,000

Note 2: Long Term Borrowings

Term Loan from Bank 5,555
Total 5,555

Note 3: Deferred Tax
Deferred Tax Asset 500
Deferred Tax Liability (200)
Total 300

Note 4: Other Current Liabilities
Unclaimed dividends 3
Billing in Advance 147
Total 150

Note 5: Trade Receivables
Considered good (outstanding within 6 months) 1,065
Considered doubtful (due from past 1 year) 40
Provision for doubtful debts (5)
Total 1,100

Additional Information:
(a) Share capital comprises of 100 million shares of INR 10 each

(b) Term Loan from bank for INR 5555 million also includes interest accrued and due of INR 555 million as

on the reporting date.
(c) Reserve for foreseeable loss is created against a service contract due within 6 months.
Required:

(i) Evaluate and report the errors and misstatements in the above extracts; and

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