ASSIGNMENT TWO

QUESTION

At ${31}^{st}$ March, $2023,$ AB Ltd$,$ had an Authorised Capital of K$35,000$ divided into $10,0007\mathrm{.}5\%$ noncumulative $p$ per share being due on ${30}^{th}$ June, $1964.$

per share paid, the remaining K$0\mathrm{.}125$eference shares of $K1$ each of which $5,000$ Shares have been issued and fully paid and $50,000$ Ordinary shares of $K0\mathrm{.}50$ each, of which $48,000$ had been issued and K$0\mathrm{.}375$ per share paid, the remaining K $0\mathrm{.}125$ per share being due on ${30}^{th}$ June $2023.$

In addition to any balances arising from the foregoing, the private ledger contained balances at ${31}^{st}$ march, $2023$ as follows:

Stock on Hand at $1^{st}$ April, $2022$

$$

$14,200$

Cash in Hand

$50$

Bank Overdraft

$4,060$

Purchases of materials

$67,280$

Sales

$97,650$

Returns from customers

Returns to Suppliers

Productive Wages

Net Cost of Tools used

Office Salaries

Sales Transport Costs

Rent Rates

Insurance

General Expenses

Cash Discount Allowed

Cash Discounts Received

Bad Debts Provision $1$st April, $2022$

Interest on Bank Overdraft

$420$

$240$

$16,750$

$476$

$2,270$

$1,320$

$486$

$480$

$286$

$360$

$240$

$220$

$160$

Freehold Land and Buildings, at Cost

$10,500$

Machinery at Cost

$16,350$

Trade Debtors

Trade Creditors

Goodwill at Cost

Accumulated provision for Depreciation of Machinery to $1^{st}$ April, $2022$

Loan to a Director

Directors' Remuneration

Undistributed Profits at ${31}^{st}$ March, $2022$

Reserve of Capital Profits

Preference Dividend for half year to $30$th September, $2023($less tax$)$

$6,748$

$6,723$

$4,600$

$1,750$

$2,600$

$4,750$

$12,500$

$6,000$

$2,297$

REQUIRED:

Prepare a Trading and Profit and Loss Account for the year to ${31}^{st}$ March $2023,$ and a Balance Sheet at that date after taking into account the following:$-$

$(1)$ A reserve for future taxation of $K1,700.$

$(2)$ The dividend due on the preference shares for the half year to ${31}^{st}$ March, $2023$

$(3)$ Additional depreciation of machinery of $K500.$

$(4)$ A total provision for Bad Debts of $K420.$

$(5)$ Insurance paid in advance of K$60.$

$(6)$ Stock of Materials and Finished Goods at $311^{st}$ March, $2023$ K$15620.$