Numba Ephraim plc, a retailing company has an authorized share capital of 700,000 ordinary shares ofK1 each. The following trial balance was extracted from the books of account as at 31 December 2020.DrCrKOOOKOOOIssued share capitalShare premium accountIncome Statement10% DebentureFurniture and fittings at cost400Depreciation to 1 January 2020Cash balances118Trade CreditorsTrade Debtors500Inventory at 1 January 2020400Hire charges (distribution, vehicles, etc.)680Purchases1,000Administrative expenses300Deferred taxationDistribution costs200Accrued expensesAuditors' remuneration40Interim dividend (paid on 1 July 2020)14Trade investments at cost (market value K170,000)140Debenture interest (gross)10Dividends received (on 1 December 2020)TurnoverPrepaid expenses583,8605601401801002001208050302,4003,860 You are also given the following information:(a)Turnover excludes value added tax.(b) Inventory at 31 December 2020 was valued at K600,000.Ⓒ Depreciation of K80,000 is to be charged on the furniture and fittings for the year to 31December 2020.(d) Administration includes directors' emoluments of K110,000.(e) The corporation tax payable (based on the profits for the year to 31 December 2020 at the rateof 30 per cent) is estimated to amount to K100,000.(f) The company proposes to pay a final ordinary dividend of 10 per cent.REQUIRED:Prepare financial statements for PUBLICATION, together with relevant notes. (Work to the nearestK1,000.)

A balance sheet is a representation of an individual's personal or corporation's financial balances…

Numba Ephraim plc, a retailing company has an authorized share capital of 700,000 ordinary shares of K1 each. The following trial balance was extracted from the books of account as at 31 December 2020. Dr Cr K000 KOOO Issued share capital Share premium account Income Statement 10% Debenture Furniture and fittings at cost 400 Depreciation to 1 January 2020 Cash balances 118 Trade Creditors Trade Debtors 500 Inventory at 1 January 2020 400 Hire charges (distribution, vehicles, etc.) 680 Purchases 1,000 Administrative expenses Deferred taxation Distribution costs Accrued expenses Auditors' remuneration Interim dividend (paid on 1 July 2020) Trade investments at cost (market value K170,000) Debenture interest (gross) Dividends received (on 1 December 2020) Turnover Prepaid expenses 300 200 40 14 140 10 58 3,860 560 140 180 100 200 120 80 50 30 2,400 3,860

Numba Ephraim plc, a retailing company has an authorized share capital of 700,000 ordinary shares of K1 each. The following trial balance was extracted from the books of account as at 31 December 2020. Dr Cr K000 KOOO Issued share capital Share premium account Income Statement 10% Debenture Furniture and fittings at cost 400 Depreciation to 1 January 2020 Cash balances 118 Trade Creditors Trade Debtors 500 Inventory at 1 January 2020 400 Hire charges (distribution, vehicles, etc.) 680 Purchases 1,000 Administrative expenses Deferred taxation Distribution costs Accrued expenses Auditors' remuneration Interim dividend (paid on 1 July 2020) Trade investments at cost (market value K170,000) Debenture interest (gross) Dividends received (on 1 December 2020) Turnover Prepaid expenses 300 200 40 14 140 10 58 3,860 560 140 180 100 200 120 80 50 30 2,400 3,860

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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