chi Ltd, has been operating since 1997. Ensachi Ltd's financial year begins an 1 e 'ember. The compary accountant produced the following trial balance for the year 2021 Additional information as at 31 August 2021 (i) Clasing imventory has been valued at K120,000. (ii) Electricity expenses af K24,000 for August 2021 have nat been imwoiced or recorded. (iii) Insurance expenses include K4,000 far September and October 2009 . (iv) The aliowance for receivables is to be increased to 5% of trade receivables. The increase (v) Plant is depreciated at 25% per annum using the reducing balance method. The entire is to be siocated to cost of sales (vi) Buildings are depreciated at 5% per annum on their original cost, allacated 50% to cost ai saies, 30% to distribution costs and 20% to administrative expenses. (vin) Land was revalued at 31 August 2021 to K400,000. (viii) The intang ble assets were purchased on 1 March 2020 and have a usefuil life of five years fram that date. Ampetisation is calculated on a monthly basis and charged to administrative expenses. (ix) Tax has been cakulated as KaD,000 for the year. (xi) The current share price of Ensachi Ltd is K2.20 per share Required: a) Prepare the income statement for the year ended 31 August 2021 Note: show clearly your workings for cost of sales, distribution costs and administrative expenses. (22 marks) (b) Prepare a statement of financial position as at 31 August 2021 . (15 marks) (c) Calculate the following accounting ratios: (i) Earnings per share; (ii) P.E. ratio. Note: show ratio formulas and workings. (d) Write notes on the following items that relate to financial statements. (i) Relevance marks) (ii) Faithfull representation marks) (iii)Comparability (iv) Understandability (v) Verifiability [marks) [Total 50 marks] Assignment One ach Ltd, has been operating since 1997. Enachi Ltd's financial year begins an \( 1^{\text {# }} \) 'ember. The company atcoumtant produced the following trial balance far the year 2021 . Directer's remuneraticn 112 K2 Ordinary shares Share premitum account 1,140 120 Additional information as at 31 August 2021 (i) Clasing imventory has been valued at K120,000. (ii) Electricity expenses of K24,000 for August 2021 have nat been imvoiced ar recorded. (iii) Insurance expenses include K4,000 for Septernber and October 2009 . iv) The allowance for receivables is to be increased to 5% of trade receivables. The increase should be charged to administrative expenses. (v) Plant is depreciated at 25% per amnum using the reducing balance method. The entire charge is to be allocated to cost of soles. (vi) Buildings are depreciated at 5% per annum on their original coat, allocated 50% to cost of 53 ies, 30% to distribution costs and 20% to administrative expenses. \{vii) Land was revalued at 31 August 2021 to K400,000. (viii) The intangible assets were purchased on 1 March 2020 and have a useful life of five years from that date Amortisation is calculated an a monthly basis and charged to administrative expenses. (ix) Tax has been cakulated as KQ0,000 for the year. (xi) The current share price of Ensachi Ltd is K220 per share. Required: (a) Prepare the income statement for the year ended 31 August 2021 Note: show dearly your workings for cost of sales, distribution costs and administrative expenses. [22 marks) (b) Prepare a statement of financial position as at 31 August 2021 . (15 marks) (c) Calculate the following accounting ratios: chi Ltd, has been operating since 1997. Ensachi Ltd's financial year begins an 1 e 'ember. The compary accountant produced the following trial balance for the year 2021 Additional information as at 31 August 2021 (i) Clasing imventory has been valued at K120,000. (ii) Electricity expenses af K24,000 for August 2021 have nat been imwoiced or recorded. (iii) Insurance expenses include K4,000 far September and October 2009 . (iv) The aliowance for receivables is to be increased to 5% of trade receivables. The increase (v) Plant is depreciated at 25% per annum using the reducing balance method. The entire is to be siocated to cost of sales (vi) Buildings are depreciated at 5% per annum on their original cost, allacated 50% to cost ai saies, 30% to distribution costs and 20% to administrative expenses. (vin) Land was revalued at 31 August 2021 to K400,000. (viii) The intang ble assets were purchased on 1 March 2020 and have a usefuil life of five years fram that date. Ampetisation is calculated on a monthly basis and charged to administrative expenses. (ix) Tax has been cakulated as KaD,000 for the year. (xi) The current share price of Ensachi Ltd is K2.20 per share Required: a) Prepare the income statement for the year ended 31 August 2021 Note: show clearly your workings for cost of sales, distribution costs and administrative expenses. (22 marks) (b) Prepare a statement of financial position as at 31 August 2021 . (15 marks) (c) Calculate the following accounting ratios: (i) Earnings per share; (ii) P.E. ratio. Note: show ratio formulas and workings. (d) Write notes on the following items that relate to financial statements. (i) Relevance marks) (ii) Faithfull representation marks) (iii)Comparability (iv) Understandability (v) Verifiability [marks) [Total 50 marks] Assignment One ach Ltd, has been operating since 1997. Enachi Ltd's financial year begins an \( 1^{\text {# }} \) 'ember. The company atcoumtant produced the following trial balance far the year 2021 . Directer's remuneraticn 112 K2 Ordinary shares Share premitum account 1,140 120 Additional information as at 31 August 2021 (i) Clasing imventory has been valued at K120,000. (ii) Electricity expenses of K24,000 for August 2021 have nat been imvoiced ar recorded. (iii) Insurance expenses include K4,000 for Septernber and October 2009 . iv) The allowance for receivables is to be increased to 5% of trade receivables. The increase should be charged to administrative expenses. (v) Plant is depreciated at 25% per amnum using the reducing balance method. The entire charge is to be allocated to cost of soles. (vi) Buildings are depreciated at 5% per annum on their original coat, allocated 50% to cost of 53 ies, 30% to distribution costs and 20% to administrative expenses. \{vii) Land was revalued at 31 August 2021 to K400,000. (viii) The intangible assets were purchased on 1 March 2020 and have a useful life of five years from that date Amortisation is calculated an a monthly basis and charged to administrative expenses. (ix) Tax has been cakulated as KQ0,000 for the year. (xi) The current share price of Ensachi Ltd is K220 per share. Required: (a) Prepare the income statement for the year ended 31 August 2021 Note: show dearly your workings for cost of sales, distribution costs and administrative expenses. [22 marks) (b) Prepare a statement of financial position as at 31 August 2021 . (15 marks) (c) Calculate the following accounting ratios