You are given the following trial balance for Chongwe Farms Ltd as at 31st December, 2016.

Chongwe Limited
Trial Balance as at 31stDecember,2016
	Debit	Credit
	K	K
Sales		2,990,000
Purchase	890,000
Consultancy Expenses	64,000
Hire of combine Harvester	105,000
Rent	12,000
Electricity	10,000
Insurance	21,000
Advertising	25,000
Equipment Repairs and maintenance	90,000
Wages and salaries	150,000
Overtime allowances	56,000
Bank Charges	15,000
Farm Equipment at Cost	3,500,000
Accumulated Depreciation		1,500,000
Trade debtors	860,000
Trade Creditors		674,000
Inventory on 1st January, 2016.	540,000
Bank	80,000
Share Capital		1,300,000
Cash at Bank	46,000
Totals	6,474,000	6,474,000

Additional Information

(i) Inventory at 31st December,2016 was K140,000

(ii) Farming Equipment are to be depreciated at rate of 10% per annum on cost.

(iii) An invoice for advertising for the month of December 2016 amounting to K12, 000 has not been processed.

(iv) Hire of combine harvester expense of K105, 000 was for three months of December 2016, January 2017and February 2017. No adjustments has been made in respect of the prepaid amount.

(v) The provision for doubtful debts is to be made amounting to K105, 000

Required

Prepare a statement of comprehensive income and statement of financial position for Chongwe Farms Ltd for the year ended 31st December, 2016.

Answer rating: 100% (QA)

CHONGWE FARMS LTD STATEMENT OF COMPREHESIVE INCOME FOR THE YEAR ENDED 31122016 Sales 2990000 Opening ... View the full answer