RUN Estates Development Limited was formed in Mowe, Ogun State in 2006 and purchased a freehold land at Pakuro for the purpose of creating a highly developed holiday centre and retirement estate. The area of land purchased consists of 4,000 plots from which a block of 20 plots was designed as sport and entertainment arena, whilst the remaining land was offered for sale at N1,500 a plot for luxury bungalow development. As at 2009 April, the position of the company was as below. N000 Authorized share capital 4,000 Issued and Fully Paid Shares 9% Redeemable Preference Shares of N1.00 each 450 Ordinary Shares 2,700 Un-appropriated Profit b/d 960 4,110 7% Debenture 1,800 Debenture Redemption Fund 690 6,600

Non-Current Assets N 000 N 000 N 000 Entertainment Arena including Land & Fitting at Cost 4,533 Less: depreciation 75 4,458 Debenture redemption Fund Investment At Cost (MV: N750,000) 690 5,148 Current Assets Freehold Land (2 plot unsold at cost) 1,200 Arena Inventory 75 Arena Receivables 13 Bank 452 1,740 Less: Current Liabilities Trade Payables 18 Proposed Dividend (Ordinary Shares) 270 (288) 1,452 6,600 The following transactions took place in the year to 30th April. 2010 In July 2007 to be effective from May 2009, the company sold the entertainment Arena to Progress Ltd for N300,000 together with Arena inventory and receivables at the book value and cash settlement made on 30/9/2009 The Preference shares were redeemed on 30th June 2009 within the terms of the original issue at 105 in lieu of accrued interest. The premium on redemption is to be written off to capital reserve. The proposed ordinary dividend was paid on July 1, 2009. On October 31, 2009, the 7% debentures were redeemed at 104 together with 6 months accrued interest. The premium on redemption is to be written off to capital reserve. The Debenture Redemption Fund had been created out of profits. On November 1, 2009, the company made a bonus share issue to the ordinary shareholders of 1 for every 3 ordinary shares held on that date. The capital reserves arising from the realization of fixed assets was created for this purpose. During the course of the year, 400 plots were sold at at N1,500 per plot Also, within the year, the creditors as at May 1, 2009 were paid off at a discount of 5%, and administration expenses of N45,000 were incurred, out of which N21,000 was unpaid as at April 30, 2010. Income from investments (market value on October 31, 2009 was N78,000) amounted to N27,000 You are required to prepare, in respect of RUN Estate Development Ltd for the year ended April 30, 2010: Comprehensive Income Statement (P & L Appropriation Account) Statement of Financial Position as at same date The Bank Account.