The statement of financial position of Michael Limited at 31 December, 2017 and 2018 were as...

 

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The statement of financial position of Michael Limited at 31 December, 2017 and 2018 were as follows: Non-current assets Tangible assets Investment at cost Current assets Inventory Receivables Cash at banks Equity Stated capital Capital surplus Income surplus Non-current liabilities 10% loan notes Current liabilities Trade payables Bank overdraft Notes 1 3 Required: 31/12/2017 GH₂000 730 100 830 80 110 20 210 1,040 500 100 200 800 100 900 100 40 140 1,040 31/12/2018 GH 000 5. Capital surplus: The freehold land and buildings were revalued upwards by GHe 100,000 during the year. 1,100 50 1.150 110 180 30 320 1,470 Prepare the company's statement of cash flows for the year ended 31 December 2018 complying with IAS 7 Statements of cash flows. Ignore taxation. 680 200 190 1,070 Notes 1. Tangible assets: During the year tangible assets with a net book value of GHe 80,000 were sold for GH¢60,000. The depreciation charge for the year on all tangible assets held at the end of the year was GHe 100,000. 2. Investments: Investments which cost GH50,000 were sold during the year for GH$40,000. 150 1,220 3. 10% Loan notes: GH50,000 of 10% loan notes were issued on 1 January 2018. All interest to 31" December has been paid. 4. Stated capital: The Company's stated capital at 31 December 2017 consisted of GH 500,000 of ordinary shares. Another 80,000 shares were issued during the year at a price of GHc2.25 per share. 120 130 250 1,470 The statement of financial position of Michael Limited at 31 December, 2017 and 2018 were as follows: Non-current assets Tangible assets Investment at cost Current assets Inventory Receivables Cash at banks Equity Stated capital Capital surplus Income surplus Non-current liabilities 10% loan notes Current liabilities Trade payables Bank overdraft Notes 1 3 Required: 31/12/2017 GH₂000 730 100 830 80 110 20 210 1,040 500 100 200 800 100 900 100 40 140 1,040 31/12/2018 GH 000 5. Capital surplus: The freehold land and buildings were revalued upwards by GHe 100,000 during the year. 1,100 50 1.150 110 180 30 320 1,470 Prepare the company's statement of cash flows for the year ended 31 December 2018 complying with IAS 7 Statements of cash flows. Ignore taxation. 680 200 190 1,070 Notes 1. Tangible assets: During the year tangible assets with a net book value of GHe 80,000 were sold for GH¢60,000. The depreciation charge for the year on all tangible assets held at the end of the year was GHe 100,000. 2. Investments: Investments which cost GH50,000 were sold during the year for GH$40,000. 150 1,220 3. 10% Loan notes: GH50,000 of 10% loan notes were issued on 1 January 2018. All interest to 31" December has been paid. 4. Stated capital: The Company's stated capital at 31 December 2017 consisted of GH 500,000 of ordinary shares. Another 80,000 shares were issued during the year at a price of GHc2.25 per share. 120 130 250 1,470

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Answer In the books of Michael Limited Statement of Cash Flow for ... View the full answer