Page

Question I The following balances were extracted from the books of James Pte Ltd for the year ended 31 December 2021 : Equity shares of $1 each Retained profit brought forward Office Salaries Debenture interest Insurance Machinery Purchases Return inwards Return outwards Sales Furniture & Fittings Accumulated depreciation Machinery as at 1 Jan 2021 Accumulated as at 1 Jan 2021 Trade Payables Trade Receivables Share premium Opening stock Cash at Bank Debentures 111,000 3,000 5,400 420,000 669,900 9,000 Cr. 300,000 48,600 1 ,200 915,000 60,000 126,000 18,000 37,500 192,000 24,000 46,800 13,200 60,000 1 530 300 1 530 300 Additional information: (i) Depreciation is to be provided at 10% on the cost of Machinery and Fumiture & Fittings. (ii) The closing stockas at 31 December 2021 was valued at $38,000. (iii) Corporate tax is 17%. (iv) Insurance included prepayment of $5,000. (v) Salaries owing $15,000. (vi) Debenture interest was outstanding for the second half of the year. (vii) Provide for irrecoverable debts at 10% on trade receivables. Required: (a) Prepare the Statement of Profit or Loss for the year ended 31 December 2021. (13 marks) (b) Prepare the Statement of Financial Position as at 31 December 2021. (12 marks) [Total: 25 marks] Page 2 of 6