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