Rabie Ltd is a company that distributes a range of thermal and fleece clothing to retailers around the country. The company is listed on the Namibian Stock Exchange. The draft trial balance of Rabie Ltd at 31 March 2019 is as follows:

The following information is relevant and should be considered:

1. The ordinary share capital consists of 2000000 shares.

2. The net realizable value of the inventory at the repoting date was estimated at N$ 2080000.

3. Rabie Ltd classifies expenses according to their function. The financial director categorizes the function of the business into three areas, namely; sales, distribution and administration.

I. The distribution department specially wraps all items in a protective wrapping before the items are shipped. The goods are transported by an independent road transport entity to the retailers. N$ 8000 of the road transport cost have been paid in advance for the following period.

II. The administrative department issue stationery, provide refreshments and are responsible for the deaning of the head office. Cleaning expenses of N$ 5 000 have been invoiced but not paid in respect of March 2019.

III. The depredation expense is allocated N$ 50 000 to distribution and N$ 25 000 to administration. The salaries are allocated N$ 250 000 to distribution and N$ 450 000 to administration. The bad debts are a distribution expense and the donations are an administration expense. 4. The income tax expense has been correctly calculated at N$ 180000.

5. The borrowings represent a loan of N$ 900 000. The loan agreement was signed on 01 October 2018 and is repayable in three equal annual arrear instalments. Interest on the loan is at 12% and payable on the first day of each month. The first installment is due to be paid on 30 September 2019. The existing loan agreement provides Rabie Ltd with the option before the end of the current reporting period.

6. A final dividend of N$ 75 000 was declared on 15 April 2019 in respect of the year ended 31 March 2019. No interim dividends were declared. A final dividend of N$ 60 000 was declared on 14 April 2018 in respect of the year ended 31 March 2018.

7. There are no components of comprehensive income. 8. The financial statements have not yet been authorised for issue. You are required to:

1 Prepare the statement of profit or loss and other comprehensive income of Rabie Ltd for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008.

3.2 Prepare the statement of financial position of Rabie Ltd as at 31 March 2019 for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008.

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Ordinary share capital Retained earnings Equipment - carrying amount Accounts receivable Bank Inventory Borrowings Accounts payable Sales Cost of sales Packing expenses Road transport cost Rabie Ltd Trial Balance as at 31 March 2019 Stationery expense Staff canteen expenses Cleaning expenses Depreciation equipment Salaries Bad debts Donations Finance costs Profit on the sale of equipment Dividends Debit 6,800,000.00 950,000.00 307,000.00 2,200,000.00 9,600,000.00 300,000.00 240,000.00 436,000.00 213,000.00 105,000.00 75,000.00 700,000.00 10,000.00 50,000.00 54,000.00 60,000.00 22,100,000.00 Credit 1,000,000.00 7,380,000.00 900,000.00 320,000.00 12,100,000.00 400,000.00 22,100,000.00 Ordinary share capital Retained earnings Equipment - carrying amount Accounts receivable Bank Inventory Borrowings Accounts payable Sales Cost of sales Packing expenses Road transport cost Rabie Ltd Trial Balance as at 31 March 2019 Stationery expense Staff canteen expenses Cleaning expenses Depreciation equipment Salaries Bad debts Donations Finance costs Profit on the sale of equipment Dividends Debit 6,800,000.00 950,000.00 307,000.00 2,200,000.00 9,600,000.00 300,000.00 240,000.00 436,000.00 213,000.00 105,000.00 75,000.00 700,000.00 10,000.00 50,000.00 54,000.00 60,000.00 22,100,000.00 Credit 1,000,000.00 7,380,000.00 900,000.00 320,000.00 12,100,000.00 400,000.00 22,100,000.00

Answer rating: 100% (QA)

1 Rabie Ltd Consolidated income statement for the year ended on 31st march 2019 PARTICULARS AMOUNT N Revenue 1210000000 Cost of sales 960000000 Distribution expenses Packing expenses 30000000 Road tra... View the full answer