The following is the summarized statement of financial position Malover Ltd at 31 December 2019 and 2020:                                                                                               31.12.20       31.12.19                                         Assets Sh. ‘000’ Sh. ‘000’ Freehold property at cost 380,000 360,000 Plant and machinery (net book value) 70,000 67,000 Furniture and fittings (net book value) 4,500 3,200 Investments --- 20,000 Stock 68,000 64,000 Debtors and prepaid expenses 79,000 68,000 Bank balance 41,000 18,000 Total assets 642,500 600,200       Equity and liabilities:     Share capital (issued and fully paid shares of Sh20 each) 350,000 300,000 Share premium 32,500 40,000 8% redeemable preference capital (shares of Sh200 each) --- 100,000 Profit and loss account 33,000 29,000 10% debentures 30,000 --- Capital redemption reserve fund 50,000 --- Taxation 45,000 40,000 Proposed dividend 30,000 27,000 Trade creditors and accruals 72,000 64,000 Total equity and liabilities 642,500 600,200   Additional information The investments were disposed of for cash Sh. 19,800,000. Furniture and fittings with a net book of Sh. 200,000 were sold for cash Sh. 180,000. The preference shares were redeemed at a premium provided out pf the share premium account. Subsequently, 25,000 ordinary shares of Sh20 each were issued at a premium of 25%. On January 1st 2004, Malover Ltd. issued Sh. 3,000,000 10% debentures at Sh96 each for every Sh100 nominal. The discount arising from this issue was charged to the profit and loss account.   The depreciation charged during the year was as follows:        Plant and Machinery Sh. 21,400,000       Furniture and fittings      Sh. 800,000   Required: Based on the Information given. Prepare Cash Flow Statement for the year ended 31 December 2020 in line with International Accounting Standard (IAS 7)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following is the summarized statement of financial position Malover Ltd at 31 December 2019 and 2020:

                                                                                              31.12.20       31.12.19                                      

  Assets

Sh. ‘000’

Sh. ‘000’

Freehold property at cost

380,000

360,000

Plant and machinery (net book value)

70,000

67,000

Furniture and fittings (net book value)

4,500

3,200

Investments

---

20,000

Stock

68,000

64,000

Debtors and prepaid expenses

79,000

68,000

Bank balance

41,000

18,000

Total assets

642,500

600,200

 

 

 

Equity and liabilities:

 

 

Share capital (issued and fully paid shares of Sh20 each)

350,000

300,000

Share premium

32,500

40,000

8% redeemable preference capital (shares of Sh200 each)

---

100,000

Profit and loss account

33,000

29,000

10% debentures

30,000

---

Capital redemption reserve fund

50,000

---

Taxation

45,000

40,000

Proposed dividend

30,000

27,000

Trade creditors and accruals

72,000

64,000

Total equity and liabilities

642,500

600,200

 

Additional information

  1. The investments were disposed of for cash Sh. 19,800,000. Furniture and fittings with a net book of Sh. 200,000 were sold for cash Sh. 180,000.
  2. The preference shares were redeemed at a premium provided out pf the share premium account. Subsequently, 25,000 ordinary shares of Sh20 each were issued at a premium of 25%.
  3. On January 1st 2004, Malover Ltd. issued Sh. 3,000,000 10% debentures at Sh96 each for every Sh100 nominal. The discount arising from this issue was charged to the profit and loss account.

 

  1. The depreciation charged during the year was as follows:

       Plant and Machinery

Sh. 21,400,000

      Furniture and fittings

     Sh. 800,000

 

Required:

Based on the Information given. Prepare Cash Flow Statement for the year ended 31 December 2020 in line with International Accounting Standard (IAS 7)

 

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