Chance u ltd is a quoted company with authorized share capital of 250,000 ordinary shares of shs,1000
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Chance u ltd is a quoted company with authorized share capital of 250,000 ordinary shares of shs,1000 each. The company prepares its accounts as on 31st march every year. And the trial balance before adjustments extracted on 31st march 2003 is shown below:
Shs.000 | Shs.000 | |
Equity share capital issued and fully paid | 200,000 | |
Accumulated profits on 1st April 2012 | 61,000 | |
6% Loan notes/secured | 60,000 | |
Lease hold factory(cost at the beginning of the year | 200,000 | |
Accumulated depreciation at the beginning of the year | 76,000 | |
Plant and machinery | 80,000 | |
Accumulated depreciation for plant and machinery | 30,000 | |
Addition plant and mach. | 10,000 | |
Payables accrued expenses | 170,000 | |
Inventory on 31st march 2013 | 160,000 | |
Receivables | 100,000 | |
Pre-payments | 80,000 | |
Balance at bank | 90,000 | |
Profit for the year(subject to adjustments) | 111,000 | |
Sale proceeds of plant | 12,000 | |
Totals | 720,000 | 720,000 |
Additional information:
- The loan notes were repayable at par by six equal annual drawings starting on 31st dec.2003.
- The lease of the factory has 30 years remaining as at 31st march 2003.
- Annual depreciation is calculated as;
- Lease hold factory 2% on cost
- Plant and Machinery 20% reducing balance on net book value as at 31st December 2003 plus additions less disposals in the year.
Iv Plant disposed off original cost 16, 000, 000, accumulated, accumulated depreciation shs.3.2m
V Inventory has been valued consistently at the lower of cost and net realizable value.
VI A dividend of 20% is proposed
Required: prepare financial statements.
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9781292085050
13th Edition
Authors: Frank Wood, Alan Sangster
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