You have been hired to prepare a Statement of Comprehensive Income for the year ended 31st December 2021 and a Statement of Financial Position as at 31st December 2021 from the following Trial Balance. Additional Notes are to be taken into account. Lumwi Farms Ltd Trial Balance as at 31st December, 2021 Amounts in Zambian Kwacha DR CR Sales 1,900,000 Purchases 780,000 Consultancy expenses 75,000 Plant hire 150,000 Rent 15,000 Electricity 20,000 Insurance 35,500 Advertising 45,000 Equipment Repairs and maintenance 95,000 Wages and Salaries 160,000 Overtime allowances 43,000 Bank Charges 3,000 Farming Equipment at cost 4,500,000 Accumulated Depreciation - Farming equipment 1,500,000 Trade Debtors 500,000 Trade Creditors 450,000 Inventory on 1st Jan 2021 540,000 Bank 80,000 Share Capital 1,300,000 Cash at hand 46,000 Accumulated Reserves 1,937,500 7,087,500 7,087,500 Additional Notes 1 Closing Stock as at 31st December 2021 was K150,000 2 Farming Equipment is depreciated at 10% on a reducing balance method 3 A customer owing K15,000 as at 31st December 2021 was doubtful 4 Included in Insurance expenses balance was K10,000 that was prepaid 5 A bank transfer of K50,000 received from a customer on 31st December 2021 was not accounted for 6 An amount of K20,000 owed to casual workers as at 31st December 2021 was not accounted for Required: Prepare: A Statement of Comprehensive Income for the year ended 31st December 2021. A Statement of Financial Position as at 31st December 2021.
QUESTION THREE
You have been hired to prepare a Statement of Comprehensive Income for the year ended 31st December 2021 and a
|
Lumwi Farms Ltd |
|
|
|
Trial Balance as at 31st December, 2021 |
|
|
|
Amounts in Zambian Kwacha |
DR |
CR |
|
Sales |
|
1,900,000 |
|
Purchases |
780,000 |
|
|
Consultancy expenses |
75,000 |
|
|
Plant hire |
150,000 |
|
|
Rent |
15,000 |
|
|
Electricity |
20,000 |
|
|
Insurance |
35,500 |
|
|
Advertising |
45,000 |
|
|
Equipment Repairs and maintenance |
95,000 |
|
|
Wages and Salaries |
160,000 |
|
|
Overtime allowances |
43,000 |
|
|
Bank Charges |
3,000 |
|
|
Farming Equipment at cost |
4,500,000 |
|
|
|
|
1,500,000 |
|
Trade Debtors |
500,000 |
|
|
Trade Creditors |
|
450,000 |
|
Inventory on 1st Jan 2021 |
540,000 |
|
|
Bank |
80,000 |
|
|
Share Capital |
|
1,300,000 |
|
Cash at hand |
46,000 |
|
|
Accumulated Reserves |
|
1,937,500
|
|
|
7,087,500 |
7,087,500 |
Additional Notes
1 Closing Stock as at 31st December 2021 was K150,000
2 Farming Equipment is depreciated at 10% on a
3 A customer owing K15,000 as at 31st December 2021 was doubtful
4 Included in Insurance expenses balance was K10,000 that was prepaid
5 A bank transfer of K50,000 received from a customer on 31st December 2021 was not accounted for
6 An amount of K20,000 owed to casual workers as at 31st December 2021 was not accounted for
Required:
Prepare:
- A Statement of Comprehensive Income for the year ended 31st December 2021.
A Statement of Financial Position as at 31st December 2021.
Step by step
Solved in 3 steps with 8 images
