The following balances were extracted from the books of K Limited which has a head office...

     

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The following balances were extracted from the books of K Limited which has a head office in Kisumu and a branch in Busia. KISUMU BUSIA (Head office) (BRANCH) Dr Cr Dr Cr Shs 000 Shs 000 Shs 000 Shs 000 Issued share capital 700,000 (35,000 ordinary shares of Shs 20 each) Unclaimed commission 5,000 Profit and loss account 150,000 General reserve 100,000 Current accounts (1 June, 2019) 124,000 124,000 Goods from Kisumu to Busia (at cost) 350,000 350,000 Purchases 1,050,000 660,000 Sales 1,360,000 860,000 Stock (1* June 2019) 260,000 90,000 Remittances from Busia 550,000 600,000 Sundry debtors and creditors Furniture and fittings 170,000 47,000 6,000 48,000 280,000 50,000 Rent and rates 10,000 14,000 Salaries and wages 130,000 80,000 Staff commission paid 8,000 6,000 Water and electricity 28,000 15,000 Advertising 13,000 2,000 Sundry expenses 18,000 5,000 Motor vehicles 155,000 35,000 Cash at bank 216,000 174,500 2,912,000 2,912,000 1,563,000 1,563,000 The following information is also available: The staff of K Limited are entitled to a commission equal to 12% of the net profit before charging directors' fees, provision for doubtful debts and such commission. i. i. Depreciate furniture and fittings at 12 2% per annum and motor vehicles at 25% per annum Provide a dividend of 20 % on the issued capital. iv. iii. Directors' fees payable by the head office amounted to Shs 35,000. Make a provision for doubtful debts of 5% on the sundry debtors. Transfer Shs 40,000 to the general reserve. The branch purchases include goods transferred from head office Closing stock, Kisumu Head office - Shs 320,000, Busia branch - Shs 85,000. V. vi. vii. viji. Required: Prepare a) The statement of Profit or Loss in columnar form, the Appropriation Account, for the year ended 31st May, 2020 b) Statement of financial position as at that date, for the Head office, the Branch and the overall company. (Total: 20 marks) The following balances were extracted from the books of K Limited which has a head office in Kisumu and a branch in Busia. KISUMU BUSIA (Head office) (BRANCH) Dr Cr Dr Cr Shs 000 Shs 000 Shs 000 Shs 000 Issued share capital 700,000 (35,000 ordinary shares of Shs 20 each) Unclaimed commission 5,000 Profit and loss account 150,000 General reserve 100,000 Current accounts (1 June, 2019) 124,000 124,000 Goods from Kisumu to Busia (at cost) 350,000 350,000 Purchases 1,050,000 660,000 Sales 1,360,000 860,000 Stock (1* June 2019) 260,000 90,000 Remittances from Busia 550,000 600,000 Sundry debtors and creditors Furniture and fittings 170,000 47,000 6,000 48,000 280,000 50,000 Rent and rates 10,000 14,000 Salaries and wages 130,000 80,000 Staff commission paid 8,000 6,000 Water and electricity 28,000 15,000 Advertising 13,000 2,000 Sundry expenses 18,000 5,000 Motor vehicles 155,000 35,000 Cash at bank 216,000 174,500 2,912,000 2,912,000 1,563,000 1,563,000 The following information is also available: The staff of K Limited are entitled to a commission equal to 12% of the net profit before charging directors' fees, provision for doubtful debts and such commission. i. i. Depreciate furniture and fittings at 12 2% per annum and motor vehicles at 25% per annum Provide a dividend of 20 % on the issued capital. iv. iii. Directors' fees payable by the head office amounted to Shs 35,000. Make a provision for doubtful debts of 5% on the sundry debtors. Transfer Shs 40,000 to the general reserve. The branch purchases include goods transferred from head office Closing stock, Kisumu Head office - Shs 320,000, Busia branch - Shs 85,000. V. vi. vii. viji. Required: Prepare a) The statement of Profit or Loss in columnar form, the Appropriation Account, for the year ended 31st May, 2020 b) Statement of financial position as at that date, for the Head office, the Branch and the overall company. (Total: 20 marks)

Answer rating: 100% (QA)

for the year may 2020 Profit and Lors account plus ended Kisumy Busiq Kisumy ... View the full answer