4. Kroftors Ltd was registered as a UK private limited company in March 2017. The company raised 500,000 capital by issuing 500,000 ordinary shares of 1 to its shareholders. The company started trading as from 1 April 2017 when it raised a 200,000 loan. The following is a summary of all of Kroftors Ltd's cash and bank transactions up to 31 March 2018, the end of the company's first financial year: Kroftors Ltd Cash and bank transactions for the financial year ended 31 Receipts Issue of opening share capital Loan Receipts from customers 500,000 200,000 2,884,000 3,584,000 Payments Equipment taken over Motor vehicles taken over Inventory taken over Payments to suppliers Wages and salaries Delivery and insurance on purchases Utility bills Rent paid Other operating expenses Interest Directors' salaries 364,000 200,000 94,300 1,603,000 445,900 25,500 136,500 142,800 222,800 13,750 123,000 3,371,550 Cash on hand and at bank at 31 March 2018 212,450 The following additional information is available: Kroftors Ltd acquired the non-current assets and inventory of Sillykone Ltd on 1 April 2017. Sillykone Ltd's assets were taken over at the following agreed fair values: Page 5 of 17 | TURN OVER NBS8340 Equipment 364,000 Motor vehicles 200,000. Inventory 94,300 The loan of 200,000 was raised on 1 April 2017 and bears interest at 7.5% a year. Interest is payable at the end of each month. All interest payments due up to and including 28 February 2018 were paid by 31 March 2018. The interest payment due on 31 March 2018 was paid on 2 April 2018. The loan capital is repayable in full on 31 March 2028 The equipment is estimated to have an economic life of 8 years from 1 April 2017 with no residual value. The motor vehicles were estimated to have an economic life of 5 years as from 1 April 2017 with a trade in value of 47,000 at the end of their economic lives. Depreciation is to be charged using the straight line method. Inventory as at 31 March 2018 was valued at 73,500. The company made sales to customers totalling 3,530,800 during the year ended 31 March 2018. All amounts due from customers at 31 March 2018 were regarded as collectible except for invoices totalling 39,400 which are to be written off. Kroftors Ltd received supplier invoices for purchases of goods for resale totalling 1,765,000 for the year ended 31 March 2018. Goods with an invoice value of 26,100 were returned to suppliers and Kroftors Ltd subsequently received full credit for these. Kroftors Ltd paid additional delivery and insurance charges of 25,500 on purchases. There were accrued utility bills of 45,500 as at 31 March 2018. The company rented its business premises from 1 April 2017 at a rental of 122,400 a year. The rent has been paid up to 31 May 2018. Corporation tax for the year ended 31 March 2018 is estimated at 51,100 and will be payable on 1 January 2019. The company also wishes to provide for deferred taxation of 32,000. The company will be proposing a dividend of 25 pence per share to be paid on 1 July 2018. Ignore VAT (UK sales tax). Required Using the information above and the pro formas supplied separately calculate and insert the appropriate figures and, where necessary, labels to complete the following financial statements for Kroftors Ltd: Page 6 of 17 NBS8340 (10 marks) b) the Statement of Financial Position as at 31 March 2018. (10 marks) Total 20 marks 4. Kroftors Ltd was registered as a UK private limited company in March 2017. The company raised 500,000 capital by issuing 500,000 ordinary shares of 1 to its shareholders. The company started trading as from 1 April 2017 when it raised a 200,000 loan. The following is a summary of all of Kroftors Ltd's cash and bank transactions up to 31 March 2018, the end of the company's first financial year: Kroftors Ltd Cash and bank transactions for the financial year ended 31 Receipts Issue of opening share capital Loan Receipts from customers 500,000 200,000 2,884,000 3,584,000 Payments Equipment taken over Motor vehicles taken over Inventory taken over Payments to suppliers Wages and salaries Delivery and insurance on purchases Utility bills Rent paid Other operating expenses Interest Directors' salaries 364,000 200,000 94,300 1,603,000 445,900 25,500 136,500 142,800 222,800 13,750 123,000 3,371,550 Cash on hand and at bank at 31 March 2018 212,450 The following additional information is available: Kroftors Ltd acquired the non-current assets and inventory of Sillykone Ltd on 1 April 2017. Sillykone Ltd's assets were taken over at the following agreed fair values: Page 5 of 17 | TURN OVER NBS8340 Equipment 364,000 Motor vehicles 200,000. Inventory 94,300 The loan of 200,000 was raised on 1 April 2017 and bears interest at 7.5% a year. Interest is payable at the end of each month. All interest payments due up to and including 28 February 2018 were paid by 31 March 2018. The interest payment due on 31 March 2018 was paid on 2 April 2018. The loan capital is repayable in full on 31 March 2028 The equipment is estimated to have an economic life of 8 years from 1 April 2017 with no residual value. The motor vehicles were estimated to have an economic life of 5 years as from 1 April 2017 with a trade in value of 47,000 at the end of their economic lives. Depreciation is to be charged using the straight line method. Inventory as at 31 March 2018 was valued at 73,500. The company made sales to customers totalling 3,530,800 during the year ended 31 March 2018. All amounts due from customers at 31 March 2018 were regarded as collectible except for invoices totalling 39,400 which are to be written off. Kroftors Ltd received supplier invoices for purchases of goods for resale totalling 1,765,000 for the year ended 31 March 2018. Goods with an invoice value of 26,100 were returned to suppliers and Kroftors Ltd subsequently received full credit for these. Kroftors Ltd paid additional delivery and insurance charges of 25,500 on purchases. There were accrued utility bills of 45,500 as at 31 March 2018. The company rented its business premises from 1 April 2017 at a rental of 122,400 a year. The rent has been paid up to 31 May 2018. Corporation tax for the year ended 31 March 2018 is estimated at 51,100 and will be payable on 1 January 2019. The company also wishes to provide for deferred taxation of 32,000. The company will be proposing a dividend of 25 pence per share to be paid on 1 July 2018. Ignore VAT (UK sales tax). Required Using the information above and the pro formas supplied separately calculate and insert the appropriate figures and, where necessary, labels to complete the following financial statements for Kroftors Ltd: Page 6 of 17 NBS8340 (10 marks) b) the Statement of Financial Position as at 31 March 2018. (10 marks) Total 20 marks