financial accounting

Ganda Bhd (Ltd) has prepares its draft income statement for the year ended 31 December 2019, and after its preparation the following balances are in the accounts: DEBIT S CREDIT $ 960,000 100,000 560,000 330,000 80.000 32,000 Ordinary Share Capital - 800,000 @ $1.20 each 9% Preference Share Capital - 200,000 @ $0.50 Freehold premises - cost Office Equipment -cost Motor Vehicle - cost Investment in Treasury Bonds Provision for Depreciation at 31 December 2019 Office Equipment Motor Vehicle Inventory at 31 December 2019 Account Receivables and Payables Bank 12% Debenture (repayable Year 2025) Provision for Doubtful Debts at 1 January 2019 Undistributed profit at 1 January 2019 Net income for the year ended 31 December 2019 Suspense 48.000 18,000 67,800 80,100 35,800 11.300 50,000 800 15,400 37,200 55,000 1,240,700 1.240.700 Before preparing the statement of financial position for the year ended 31 December 2019, you discovered there were discrepancies in the records and the reason for the suspense account. a) The directors had recommended the payment of a half-year dividend to preference shareholders and an interim dividend of 6 cents per share to the ordinary shareholders. Both of these dividends were paid in August 2019 and this had been recorded in the bank account. However the double entries for both of these transactions had not been made by Ganda Bhd (Ltd). b) The remaining amount in the suspense account was a purchase of office equipment, acquired on 1 October 2019 c) On 31 December 2019, a half-year's Debenture Interest remained unpaid. d) The provision for bad debts, estimated at 3% of account receivable, has not been accounted for at 31 December 2019. a) The directors had recommended the payment of a half-year dividend to preference shareholders and an interim dividend of 6 cents per share to the ordinary shareholders. Both of these dividends were paid in August 2019 and this had been recorded in the bank account. However the double entries for both of these transactions had not been made by Ganda Bhd (Ltd.). b) The remaining amount in the suspense account was a purchase of office equipment, acquired on 1 October 2019. c) On 31 December 2019, a half-year's Debenture Interest remained unpaid. d) The provision for bad debts, estimated at 3% of account receivable, has not been accounted for at 31 December 2019. Tutorial Questions on Company Accounts (Internal Use) e) The directors recommended that payment of a final half year dividend to preference shareholders. Required: Prepare the adjusted income statement for the year ended 31 December 2019 and statement of financial position as at that date. (for internal use) (20 marks)