3000 Question 1 The following balances have been extracted from the books of Johnny Limited as at 31 March 2020- Debit() Credit() Cash 11000 Marketing Payables 12000 Receivables 118000 Director fee's 6000 Furniture: At cost 20000 Accumulated depreciation (at 1.4.2020) 9000 Retained earning (at 1.4.2020) 8000 Purchases 124000 Sales 270000 Rental 10000 Share capital (issued & fully paid) 70000 Telephone 5000 Inventory (at 1.4.2020) 16000 Travelling expenses 2000 Van: At cost 40000 Accumulated depreciation (at 1.4.2020) 10000 Wages 24000 379000 379000 Additional information: a. Inventory at 31 March 2020 was valued at 14000 b. Furniture and the van are depreciated at rate of 15% and 25% respectively on cost C. A dividend of 40p per share is proposed d. Corporate tax owing at 31 March 2020 is estimated to be 25000 e. The company's authorized share capital is 100000 of E1 ordinary share You are required: - 1. Prepare Johnny Limited trading profit and loss statement for the year and balance sheet as at 31 March 2020 (40 Marks) 2. Explain why the business not necessarily worth its net assets value as at 31 March 2020? (No of words required between 60 to 80) (10 Marks)