AutoSave O Off) ACC 1202 INTRODUCTION TO ACCOUNTING Il.docx - Saved Search Jedidah Wamucii JW X File Home Insert Design Layout References Mailings Review View Help Table Design Layout Share Comments X Cut Calibri (Body) [ Copy * 11 ~ A" A Aa Ao 1. AaBb AaBbCCDc AaBbCcDC AaBbC( AaBbCcD Find Paste BIU XX ALA. Heading 2 Cc Replace 1 Normal 1 No Spac... Heading 1 Heading 3 Select v Dictate Sensitivity Format Painter Clipboard Font Paragraph Styles Editing Voice Sensitivity QUESTION TWO Mamba Company Ltd is a retail provider with an authorised share capital of 800,000 Sh. 20 ordinary shares and 250,000 8% Sh. 20 redeemable preference shares. The following financial information reflects the position of the company as at 31 December 2018 after preparing the trading profit and loss account Sh. '000 Provision for depreciation Fittings 1,500 Motor vehicles 3,740 Goodwill 1,200 Issued share capital: 600,000 Sh. 20 Ordinary shares 12,000 250,000 Sh. 20 Redeemable preference shares 5,000 Share premium account 400 Trade debtors and prepayments 1,708 Activate Windows Land and buildings at valuation (cost Sh. 4,400,000) 18,400 Go to Settings to activate Windows. Page 2 of 3 640 words X Ed [ Focus + 100% Type here to search O gi o W 9:32 AM 5/20/2020AutoSave O Off) ACC 1202 INTRODUCTION TO ACCOUNTING Il.docx - Saved Search Jedidah Wamucii JW X File Home Insert Design Layout References Mailings Review View Help Table Design Layout Share Comments X Cut * 11 ~ A" A Aa A GEE 21 Find Paste [ Copy Calibri (Body) 1. AaBb AaBbCCDc AaBbCcDC AaBbCc AaBbCcD Format Painter BIUabXx ALA. Heading 2 1 Normal 1 No Spac... Heading 1 Heading 3 Cc Replace Select v Dictate Sensitivity Clipboard Font Paragraph Styles Editing Voice Sensitivity 250,000 Sh. 20 Redeemable preference shares 5.000 Share premium account 400 Trade debtors and prepayments 1,708 Land and buildings at valuation (cost Sh. 4,400,000) 18,400 Capital redemption reserve fund 3,000 Fittings at cost 3.000 Motor vehicles at cost 7,940 10% Debentures 1.600 Trade creditors and accruals 960 Short term investments (Market value Sh. 860,000) 780 Stock 31 December 2018 2,960 Bank overdraft 540 Revaluation reserve 1,000 Net profit for the year 1,440 Retained profit as at 1 January 2018 4,460 General reserve 1,100 Provision for doubtful debts 48 Interim dividends paid Ordinary 500 Preference 200 The following resolutions relating to the year ended 31 December 2018 have been passed by the board of directors of the company: a) Transfer Sh. 500,000 to general reserves. Transfer Sh. 700,000 to capital redemption reserve fund. Provide for 5% final dividend and final preference dividend on shares issued and outstanding on 31 December 2018 1) Make a bonus issue of 100,000 fully paid ordinary shares from the Activate Windows retained profits account. Go to Settings to activate Windows. Page 3 of 3 640 words X Ed [ Focus + 100% Type here to search O o e W T 9:33 AM 5/20/2020 73AutoSave O Off) ACC 1202 INTRODUCTION TO ACCOUNTING Il.docx - Saved Search Jedidah Wamucii JW X File Home Insert Design Layout References Mailings Review View Help Table Design Layout Share Comments X Cut Calibri (Body) * 11 ~ A" A Aa* A 1. AaBb Find AaBbCcDC AaBbCcDC AaBbC( AaBbCcD Paste [ Copy BIUabx x A LA Heading 2 1 Normal 1 No Spac... Heading 1 Heading 3 Cc Replace Select v Dictate Sensitivity Format Painter Clipboard Font Paragraph Styles Editing Voice Sensitivity b ) Transfer Sh. 700,000 to capital redemption reserve fund C ) Provide for 5% final dividend and final preference dividend on shares issued and outstanding on 31 December 2018 1) Make a bonus issue of 100,000 fully paid ordinary shares from the retained profits account. Required: 1. The income statement and appropriation account of Mamba Company Ltd for the year ended 31 December 2018 (9 Marks) ii. The Statement of financial position of Mamba Company Lid as at 31 December 2018 (6 Marks) Activate Windows Go to Settings to activate Windows. Page 3 of 3 640 words X Ed Focus + 100% Type here to search O O X W T 9:33 AM 5/20/2020 73