225,000 1 Here is the trial of Burma Limited as at 30 April 2018, $. do Inventory 102994 Shure Capital alhorised and pure 200 000 Accounts recereale 227,212 Accounts Leffable 54818 8% Loore Notes 40.000 Nova comente care replacement reme 30.00 5.2002 Keltuned foreby 12411 Learn_mute merest 7600 giugoment at cost Motor Vehicle at cost 57,200 Bank 4973 Cash 62 Sale) 880426 Purchases 4.9.2012 Retarn fruiand's 1452 Salenton Sadurces 30.000 Werges wrid Salaries 93,289. Robem, hussiness patts and insurance 16,240 Directors remunerations 82,400 Discoure allowed 3415 Accumulated fravisten for deprecation 32,600 Motor Vehicle 18200 11283,455 1 1283,455 Canadie maandis equipment The following additional information is to be taken into account: 1) Inventory at 30 April 2018 was valued at K111,317 2) Accrued rent K802 : Directors remuneration K6,000 3) Loan note interest Y year's interest owing 4) Depreciation on cost: Equipment 20%; Motor vehicles 25%. 5) Transfer to reserves : General reserve K5,000 : Non-current asset replacement reserve K10,000 6) Within two weeks of the balance sheet a notice of liquidation was received by Burma Limited concering one of the company's receivables. K15, 119 is included in the statement of financial position for this receivable and enquiries reveal that only K10,000 is likely to be received. No adjustment has been for this item in the accounts. 7) An allowance of 5% should be created on accounts receivables. Required: a) Discuss the main objectives of preparing financial statements. b) Contrast between the income statement and the statement of comprehensive income. c) Discuss the main purpose of a conceptual frame work in the preparation of financial statements. d) Using the information given in the trial balance above, prepare the statement of profit or loss for the year ending 30 April 2018 in accordance with the Companies Act and relevant accounting standards. 225,000 1 Here is the trial of Burma Limited as at 30 April 2018, $. do Inventory 102994 Shure Capital alhorised and pure 200 000 Accounts recereale 227,212 Accounts Leffable 54818 8% Loore Notes 40.000 Nova comente care replacement reme 30.00 5.2002 Keltuned foreby 12411 Learn_mute merest 7600 giugoment at cost Motor Vehicle at cost 57,200 Bank 4973 Cash 62 Sale) 880426 Purchases 4.9.2012 Retarn fruiand's 1452 Salenton Sadurces 30.000 Werges wrid Salaries 93,289. Robem, hussiness patts and insurance 16,240 Directors remunerations 82,400 Discoure allowed 3415 Accumulated fravisten for deprecation 32,600 Motor Vehicle 18200 11283,455 1 1283,455 Canadie maandis equipment The following additional information is to be taken into account: 1) Inventory at 30 April 2018 was valued at K111,317 2) Accrued rent K802 : Directors remuneration K6,000 3) Loan note interest Y year's interest owing 4) Depreciation on cost: Equipment 20%; Motor vehicles 25%. 5) Transfer to reserves : General reserve K5,000 : Non-current asset replacement reserve K10,000 6) Within two weeks of the balance sheet a notice of liquidation was received by Burma Limited concering one of the company's receivables. K15, 119 is included in the statement of financial position for this receivable and enquiries reveal that only K10,000 is likely to be received. No adjustment has been for this item in the accounts. 7) An allowance of 5% should be created on accounts receivables. Required: a) Discuss the main objectives of preparing financial statements. b) Contrast between the income statement and the statement of comprehensive income. c) Discuss the main purpose of a conceptual frame work in the preparation of financial statements. d) Using the information given in the trial balance above, prepare the statement of profit or loss for the year ending 30 April 2018 in accordance with the Companies Act and relevant accounting standards
