4. Operation costs prepaid as at 30 Septem 5. Administration costs outstanding as at 30 September 2019 amounted to Sh. 6. The company paid the interest on the loan for the year ended 30 September 2019 on 30 October 2019. 7.The company's directors propose that the preference share dividend be paid and a dividend of 10% the ordinary shares be paid. 8. Provide for directors fees at shs. 200,000 and audit fees at shs.160,000. 9. Tax rate is 30% You are required to prepare and upload the following: Statement of income for the year ended 30 September 2019. Statement of financial position as at 30 September 2019. (i) (ii)
4. Operation costs prepaid as at 30 Septem 5. Administration costs outstanding as at 30 September 2019 amounted to Sh. 6. The company paid the interest on the loan for the year ended 30 September 2019 on 30 October 2019. 7.The company's directors propose that the preference share dividend be paid and a dividend of 10% the ordinary shares be paid. 8. Provide for directors fees at shs. 200,000 and audit fees at shs.160,000. 9. Tax rate is 30% You are required to prepare and upload the following: Statement of income for the year ended 30 September 2019. Statement of financial position as at 30 September 2019. (i) (ii)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. Operation costs prepaid as at 30 September 2019 amounted to Sh.4,000.
5. Administration costs outstanding as at 30 September 2019 amounted to Sh.7,000.
6. The company paid the interest on the loan for the year ended 30 September 2019 on 30
October 2019.
7. The company's directors propose that the preference share dividend be paid and a
dividend of 10% the ordinary shares be paid.
8. Provide for directors fees at shs. 200,000 and audit fees at shs. 160,000.
9. Tax rate is 30%
You are required to prepare and upload the following:
Statement of income for the year ended 30 September 2019.
Statement of financial position as at 30 September 2019.
(i)
(ii)
Transcribed Image Text:Question text
The following balances were extracted from the books of Wamu Estate Agency Limited as at
30 September 2019:
Ordinary shares of Sh.20 each.
8% preference shares Sh.20 each.
Share premium
6% loan
Accounts payable
Accounts receivables
Rental income
Estate commission
Buildings at cost
Provision for depreciation: Buildings
Fixtures and fittings at cost
Provision for depreciation: Furniture
Operation cost
Administration cost
Bad debts written off
Provision for doubtful debts
Retained profit 1 October 2018
Land at cost
Goodwill
Bank overdraft
Sh.'000
1,000,000
100,000
80,000
100,000
175,000
830,000
3,262,000
1,430,000
5,000,000
750,000
1,340,000
256,000
101,000
123,000
24,000
33,000
1,462,000
1,500,000
160,000
430,000
Additional information:
1. Provide depreciation at the following rate: building at 2% using straight line method
and Furniture at 10% on reducing balance method.
2. Accounts receivable balance includes Sh. 10,000 due from Musa who has now been
declared bankrupt. In the circumstances, it has been decided to write the debt off as a bad
debt.
3. The provision for doubtful debts as at 30 September 2019 is to be 5% of trade debtors.
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