A business has the following batances on its accounts:

Calculate the quick ratio$/$acid test for the company.

END OF SECTION A Answer ALL. questions from this section.

Question $6$

The following are the accounts of BMH Limited for the period ending $31$

December, $2023.$ Inventory as at $31$ December, $2023$ was valued at $$9,200,000.$

The company recelved cash of $$1\mathrm{.}2m$ from the issue of $300,000$$$1$ equity

shares at a premilum of $$3$ per share. This share issue has not yet been

recorded in the accounts.

Allowance for irrecoverable recelvables is to be adjusted to $10\%$ of the trade

recelvables balance.

Selling and distribution expenses of $$240,000$ have been prepaid.

Administration expenses of $$300,000$ have been accrued.

The company acquired an additional plant and equipment of $$1\mathrm{.}2m$ during the

year. The company's policy is to charge a full year's depreciation in the year of

acquisition.

The company has the following depreciation policies for its non$-$current assets:

Depreciation is to be allocated as follows:

Administration Expenses:

Selling and Distribution Expenses:

Selling and Distribution Expenses:

Ignore taxation.

Required:

From the trial balance and additional notes:

$($a$)$ Prepare a statement of total comprehensive income for BMH

$(20$ marks$)$

Ltd for the year ended $31$ December, $2023.$ Required:

From the friath

$($a$)$ Prepare a statement of fotal comprehorisive income for BMH $(20$ marks$)$

Lid for the ywar ended $31$ Decumber, $2023.$

Page $5$ of $9$

$($b$)$ Prepare a statement of financial position for BMH Lid as at

$(20$ marks$)$

$31$ December, $2023.$

You are NOT required to prepare any notes to the accounts.

You ARE required to show all workings clearly.

Total: $40$ marksQuestion $7$

Afrifa Lid is a wholesaler and distributor of electrical components in the United

Kingdom. In recent years, the impact of the Covid$-19$ pandemic and the economic

crisis in the UK have affected the company's profltability. The most recent draft

financial statements of the business are as follows: