The following financial information has been extracted from the books of Bek BakaraLimited as at 30...

   

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The following financial information has been extracted from the books of Bek BakaraLimited as at 30 June 2020. $000 Inventory at 1/7/2019 Account receivables and payables Allowance for receivables Bank overdraft Directors' fees Wages and salaries Buildings at cost Plant and equipment at cost Ordinary shares of $1 each Retained earnings at 1/7/2019 General distribution costs General administrative expenses Land at cost Rental income Disposal of vehicles. Bank overdraft interest Accumulated depreciation at 1/7/2019 -Building -Plant and equipment -Vehicles Dividend paid Corporation tax 2,140 3,660 3,000 5,520 5,000 3,920 2,020 3,540 2,400 180 400 $000 2,340 160 1,140 4,000 10,060 600 200 1,800 1,520 2,640 120 Corporation tax Vehicles at cost Purchases Goodwill at cost Sales Additional information: 1. 2. 3. 4. 5,680 9,760 6,000 53,220 120 111. iv. V. 28,640 53,220 Account receivables include irrecoverable debts of $160,000, which is to be written off.An allowance for receivables should then be created, representing 4% of the account receivables which remain after the irrecoverable debt has been written off. Corporation tax for the year to 30 June 2019 was over-provided by $120,000. Aprovision for corporation tax for the year ended 30 June 2020 of $600,000 is required. The company's depreciation policy is as follows: i. Building - 4% per annum using the straight-line method ii. Plant and equipment - 20% per annum using the reducing balance method Vehicles - 25% per annum using the straight-line method No depreciation is required for the land. A full year's depreciation is charged in the year of purchased and no depreciationis charged in the year of disposal. Inventory is value at $2,380,000 as at 30 June 2020. 2. 3. 4. Corporation tax for the year to 30 June 2019 was over-provided by $120,000. Aprovision for corporation tax for the year ended 30 June 2020 of $600,000 is required. The company's depreciation policy is as follows: a. b. C. i. Building - 4% per annum using the straight-line method Plant and equipment - 20% per annum using the reducing balance method Vehicles - 25% per annum using the straight-line method No depreciation is required for the land. A full year's depreciation is charged in the year of purchased and no depreciationis charged in the year of disposal. Inventory is value at $2,380,000 as at 30 June 2020. ii. iii. iv. On 2 January 2020, some vehicles were sold for $200,000. The sale proceeds have been banked and a vehicle disposal account credited, but no other entries have been made to this disposal. These vehicles had initially cost $880,000 when they were purchased on 25 August 2016. The net book value was $220,000 at the date disposal. Required: Prepare the Income Statement of Bek Bakara Limited for the year ended 30 June 2020. Prepare the statement of financial position of Bek Bakara Limited as at 30 June 2020. The Conceptual Framework states that an entity's choices of measurement bases and capital maintenance concept determine the accounting model used in the preparation of the financial statement. Discuss the measurement base and capital maintenance concepts identified in the Conceptual Framework. Provide examples for your discussion. The following financial information has been extracted from the books of Bek BakaraLimited as at 30 June 2020. $000 Inventory at 1/7/2019 Account receivables and payables Allowance for receivables Bank overdraft Directors' fees Wages and salaries Buildings at cost Plant and equipment at cost Ordinary shares of $1 each Retained earnings at 1/7/2019 General distribution costs General administrative expenses Land at cost Rental income Disposal of vehicles. Bank overdraft interest Accumulated depreciation at 1/7/2019 -Building -Plant and equipment -Vehicles Dividend paid Corporation tax 2,140 3,660 3,000 5,520 5,000 3,920 2,020 3,540 2,400 180 400 $000 2,340 160 1,140 4,000 10,060 600 200 1,800 1,520 2,640 120 Corporation tax Vehicles at cost Purchases Goodwill at cost Sales Additional information: 1. 2. 3. 4. 5,680 9,760 6,000 53,220 120 111. iv. V. 28,640 53,220 Account receivables include irrecoverable debts of $160,000, which is to be written off.An allowance for receivables should then be created, representing 4% of the account receivables which remain after the irrecoverable debt has been written off. Corporation tax for the year to 30 June 2019 was over-provided by $120,000. Aprovision for corporation tax for the year ended 30 June 2020 of $600,000 is required. The company's depreciation policy is as follows: i. Building - 4% per annum using the straight-line method ii. Plant and equipment - 20% per annum using the reducing balance method Vehicles - 25% per annum using the straight-line method No depreciation is required for the land. A full year's depreciation is charged in the year of purchased and no depreciationis charged in the year of disposal. Inventory is value at $2,380,000 as at 30 June 2020. 2. 3. 4. Corporation tax for the year to 30 June 2019 was over-provided by $120,000. Aprovision for corporation tax for the year ended 30 June 2020 of $600,000 is required. The company's depreciation policy is as follows: a. b. C. i. Building - 4% per annum using the straight-line method Plant and equipment - 20% per annum using the reducing balance method Vehicles - 25% per annum using the straight-line method No depreciation is required for the land. A full year's depreciation is charged in the year of purchased and no depreciationis charged in the year of disposal. Inventory is value at $2,380,000 as at 30 June 2020. ii. iii. iv. On 2 January 2020, some vehicles were sold for $200,000. The sale proceeds have been banked and a vehicle disposal account credited, but no other entries have been made to this disposal. These vehicles had initially cost $880,000 when they were purchased on 25 August 2016. The net book value was $220,000 at the date disposal. Required: Prepare the Income Statement of Bek Bakara Limited for the year ended 30 June 2020. Prepare the statement of financial position of Bek Bakara Limited as at 30 June 2020. The Conceptual Framework states that an entity's choices of measurement bases and capital maintenance concept determine the accounting model used in the preparation of the financial statement. Discuss the measurement base and capital maintenance concepts identified in the Conceptual Framework. Provide examples for your discussion.

Answer rating: 100% (QA)

a Income Statement of Bek Bakara Limited for the year ended 30 June 2020 Revenue Sales 28640000 Rental income 600000 Total Revenue 29240000 Cost of Goods Sold Inventory 172019 2140000 Purchases 976000... View the full answer