The following are the accounts of BMH Limited for the period ending 31 December, 2023. Plant...

  

Transcribed Image Text:

The following are the accounts of BMH Limited for the period ending 31 December, 2023. Plant property and equipment (at cost) Accumulated depredation-property (at 1 January 2023) $'000 $'000 129,000 37,800 Land (at cost) Inventory (at 1 January 2023) Trade receivables 23,400 21,750 54,000 Trade payables 20,700 Bank balance 55,500 Purchases 180,000 Sales revenue 1050 264,300 Sales discounts given to customers 17,550 Selling and distribution expenses 27,000 Administration expenses 21,000 Called-Up share capital ($1 equity shares) 1200 Debenture interest paid 18,000 10% Debentures 27,750 Retained earnings (at 1 January, 2023) 13,500 Share premium account 6,300 Dividends paid Allowance for irrecoverable receivables (at 1 January, 2023) Additional Notes: 2,700 461,250 461,250 1. Inventory as at 31 December, 2023 was valued at $9,200,000. 2. The company received cash of $1.2m from the issue of 300,000 $1 equity shares at a premium of $3 per share. This share issue has not yet been recorded in the accounts. 3. Allowance for irrecoverable receivables is to be adjusted to 10% of the trade receivables balance. 4. Selling and distribution expenses of $240,000 have been prepaid. 5. Administration expenses of $300,000 have been accrued. 6. The company acquired an additional plant and equipment of $1.2m during the year. The company's policy is to charge a full year's depreciation in the year of acquisition. 7. The company has the following depreciation policies for its non- current assets: Land (No depreciation) Plant, property and equipment (Straight-line depreciation at 5% per annum with no salvage value) 8. Depreciation is to be allocated as follows: 1. Administration Expenses: 30% 2. Selling and Distribution Expenses: 70% 9. Ignore taxation. Required: From the trial balance and additional notes (a) Prepare a statement of total comprehensive income for BMH (20 marks) Lid for the year ended 31 December, 2023 (b) Prepare a statement of financial position for BMH LId as at 31 December, 2023. You are NOT required to prepare any notes to the accounts. You ARE required to show all workings clearly. (20 marks) The following are the accounts of BMH Limited for the period ending 31 December, 2023. Plant property and equipment (at cost) Accumulated depredation-property (at 1 January 2023) $'000 $'000 129,000 37,800 Land (at cost) Inventory (at 1 January 2023) Trade receivables 23,400 21,750 54,000 Trade payables 20,700 Bank balance 55,500 Purchases 180,000 Sales revenue 1050 264,300 Sales discounts given to customers 17,550 Selling and distribution expenses 27,000 Administration expenses 21,000 Called-Up share capital ($1 equity shares) 1200 Debenture interest paid 18,000 10% Debentures 27,750 Retained earnings (at 1 January, 2023) 13,500 Share premium account 6,300 Dividends paid Allowance for irrecoverable receivables (at 1 January, 2023) Additional Notes: 2,700 461,250 461,250 1. Inventory as at 31 December, 2023 was valued at $9,200,000. 2. The company received cash of $1.2m from the issue of 300,000 $1 equity shares at a premium of $3 per share. This share issue has not yet been recorded in the accounts. 3. Allowance for irrecoverable receivables is to be adjusted to 10% of the trade receivables balance. 4. Selling and distribution expenses of $240,000 have been prepaid. 5. Administration expenses of $300,000 have been accrued. 6. The company acquired an additional plant and equipment of $1.2m during the year. The company's policy is to charge a full year's depreciation in the year of acquisition. 7. The company has the following depreciation policies for its non- current assets: Land (No depreciation) Plant, property and equipment (Straight-line depreciation at 5% per annum with no salvage value) 8. Depreciation is to be allocated as follows: 1. Administration Expenses: 30% 2. Selling and Distribution Expenses: 70% 9. Ignore taxation. Required: From the trial balance and additional notes (a) Prepare a statement of total comprehensive income for BMH (20 marks) Lid for the year ended 31 December, 2023 (b) Prepare a statement of financial position for BMH LId as at 31 December, 2023. You are NOT required to prepare any notes to the accounts. You ARE required to show all workings clearly. (20 marks)

Answer rating: 100% (QA)

a Statement of Total Comprehensive Income for BMH Limited for the year ended 31 December 2023 Notes ... View the full answer