The balance sheets of Choolwe& Co. Ltd for years ended 2019,2018 and 2021 are as follows:...
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The balance sheets of Choolwe& Co. Ltd for years ended 2019,2018 and 2021 are as follows: Choolwe & Co Ltd Balance sheets at 31 December Non-current assets Plant and equipment Current assets Inventory Trade debtors Short-term investments Cash at bank and in hand Creditors: amounts falling due within one year Short term loans Trade creditors. Taxation Net current assets Total assets less current liabilities Capital and reserves Called-up share capital Share premium account Other reserves Income statement Other data Income before tax Tax on annual profit 2019 KOOO 13,200 2,190 2,040 4,200 1,920 (2,340) (2,760) (360) 5,460 18,090 4,500 9,000 3,280 1,310 960 360 300 645 2020 360 KOOO 16,110 2,280 2,100 1800 1,650 (2,580) (2,610) (420) 5,610 18,330 4,500 9,000 4,060 770 1,020 420 360 2021 KOOO a) State the objective of financial statements. b) Identify and explain briefly the seven (7) c) Explain atleast five (5) qualitative characteristics of financial information 16,410 2,490 2,430 1,160 2,160 (2,550) (2,670) (530) 5,750 19,000 Tax paid during the year Annual depreciation 780 Dividends declared and paid 360 360 In 2020, equipment was sold at a loss of K210,000. New plant in 2020 cost K5,100,000 and in 2021 cost K1,200,000. Income transferred to other reserves in 2020 and 2021 amounted to K780 and K510 respectively 4,500 9,000 4,570 960 1,590 530 420 900 REQUIRED Prepare a statement of cash flows for 2020 and 2021 in accordance with FSR 1 and show how they would be presented under IAS 7. The balance sheets of Choolwe& Co. Ltd for years ended 2019,2018 and 2021 are as follows: Choolwe & Co Ltd Balance sheets at 31 December Non-current assets Plant and equipment Current assets Inventory Trade debtors Short-term investments Cash at bank and in hand Creditors: amounts falling due within one year Short term loans Trade creditors. Taxation Net current assets Total assets less current liabilities Capital and reserves Called-up share capital Share premium account Other reserves Income statement Other data Income before tax Tax on annual profit 2019 KOOO 13,200 2,190 2,040 4,200 1,920 (2,340) (2,760) (360) 5,460 18,090 4,500 9,000 3,280 1,310 960 360 300 645 2020 360 KOOO 16,110 2,280 2,100 1800 1,650 (2,580) (2,610) (420) 5,610 18,330 4,500 9,000 4,060 770 1,020 420 360 2021 KOOO a) State the objective of financial statements. b) Identify and explain briefly the seven (7) c) Explain atleast five (5) qualitative characteristics of financial information 16,410 2,490 2,430 1,160 2,160 (2,550) (2,670) (530) 5,750 19,000 Tax paid during the year Annual depreciation 780 Dividends declared and paid 360 360 In 2020, equipment was sold at a loss of K210,000. New plant in 2020 cost K5,100,000 and in 2021 cost K1,200,000. Income transferred to other reserves in 2020 and 2021 amounted to K780 and K510 respectively 4,500 9,000 4,570 960 1,590 530 420 900 REQUIRED Prepare a statement of cash flows for 2020 and 2021 in accordance with FSR 1 and show how they would be presented under IAS 7.
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Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
Posted Date:
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