Additional information

Depreciation has not yet been provided for the year.

The following rates are applied:

Fixtures and fittings Straight line method 25 per cent t

Motor vehicles Reducing balance method 20 per cent

Freehold Land No depreciation

The company classifies depreciation for fixtures as Administrative expenses

and depreciation for Motor vehicles as Distribution expenses

1. Inventory at 31 May 2021 amounted to 85000.

2. Prepaid Electricity expenses amount to 700

3. Audit fee for 2021 will be 3100 is to be accrued.

4. Accrued investment income 20000

5. An accrual also needs to be made in relation to debenture interest.

6. Provision for Allowance for irrecoverable Receivables to be 1.5% of outstanding

receivables at 31/05/21

7. Tax on profit after interest to be charged at 5% and is to be paid in arrears

8. Nominal value per share is $ 10.00 and the directors of the company have declared a

final dividend of $ 1 per share

From the table and additional notes:

a. Prepare the Statement of Profit or Loss for Rapido Ltd for the year ended 31 May 2021.

(18 marks)

b. Prepare the Statement of financial position for the year 31 st May 2021. (12 marks)

c. Explain Prudence & money measurement Accounting concept. (6 marks)

Trial Balance of Rapido Ltd for 31/5/21