Financial report
Kamikazi Investment Limited had the following balances as at the end of September, 2022
|
Balances |
Debit (Dr) “000” |
Credit (Cr) |
|
Plant and Machinery |
160,000 |
|
|
Land |
674,000 |
|
|
|
16,000 |
|
|
Purchases(Adjusted) |
400,000 |
|
|
Closing stock |
150,000 |
|
|
Wages |
120,000 |
|
|
Sales (Net) |
|
1,000,000 |
|
Salaries |
80,000 |
|
|
Bank overdraft |
|
200,000 |
|
10% debentures (issued on 1st April, 2016) |
|
100,000 |
|
Equity share capital |
|
200,000 |
|
|
|
100,000 |
|
|
1,600,000 |
1,600,000 |
Required:
With reference to the above table and using the knowledge you have acquired in this module, explain the type of Financial reports you would produce at the end of the year stating the rationale for each.
| Particulars | Amount | Particulars | Amount |
| Opening stock | - | Sales | 10,00,000 |
| Purchases(Adjusted) | 4,00,000 | Closing stock | 1,50,000 |
| Wages | 1,20,000 | ||
| 6,30,000 | |||
| 11,50,000 | 11,50,000 | ||
| Salaries | 80,000 | 6,30,000 | |
| Depreciation | 16,000 | ||
| Interest on debentures | 10,000 | ||
| 5,24,000 | |||
| 6,30,000 | 6,30,000 |
Assuming that there is no Opening stock.
Step by step
Solved in 2 steps
