Question
a) The following data is provided for a certain firm that made a net profit before interest of sh. 240,000,000. The following data is provided
a) The following data is provided for a certain firm that made a net profit before interest of sh. 240,000,000. The following data is provided for different scenarios; Particulars Net profit before interest & 240,000 tax Ordinary share Capital Share premium 10% debentures Capital Capital-Leah Capital. Nina Capital- Nyambura Required Lenny Traders Lenny Lenny Remarks Partnershi Co. ltd. p Sh.'000' Sh.'000' Sh.'000' 240,000 240,000 200,000 1,000,000 Owned by 500 equal shareholders who are paid dividends at 10% every year 300,000 1,000,000 500,000 300,000 200,000 Drawings of sh. 100,000 per month 1. Interest on capital @ 10% 2. Salary to Leah sh.20,000 p.m 3. Profits shared according to capital ratio contributions From information provided above, consider corporation tax to be 30%. Prepare the profit and loss appropriation account for each firm and an extract of the statement of financial position (15 marks)
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