Help me solve the following. Answer all questions.

1. Question one

a) The following extracts are from the financial statements of BENTI Ltd, as at 31 March:

2013

$

2012

"000" $"000"

Non- current assets

Freehold land and building 50,400 36,000

Plant and machinery 17,580 19,050

Investment at cost 10,800 11,250

Goodwill 8,400 8,700

87,180 75,000

Current assets

Inventory 30,150 26,100

Trade receivables 18,420 23,400

Short term investments 5,130 2,520

Cash in hand 600 1.290

54.300 53.310

141,480 128,310

Total assets

Equity and liabilities

Ordinary share capital 54,000 45,000

Share premium 4,500 2,250

Revaluation reserves 13,500

Revenue reserve 18,450 15,750

90.450 63.000

Non- current liabilities

14% loan stock 22.500 27.000

Current liabilities

Trade payables 17,550 15,750

Bank overdraft 7,170 19,620

Proposed dividend 1,350 1,140

Taxation 2.460 1.800

28.530 38.310

Total equity and liabilities 141.480 128.310

Additional information:

1. The income statement extract for the year ended 31 March 2013 is as follows;

$."000" $."000"

Profit before tax 7,200

Less corporation tax 2.700

Profit after tax 4,500

Dividends: Interim paid 450

Proposed 1.350 1.800

Retained earnings 2.700

2. During the year, plant with a net book value of $2,250,000 was sold for $4,410,000. The plant

had originally cost $9,000,000

3. Part of the investment was sold during the year at a profit of $480,000

4. Depreciation on plant and machinery amounting to $3,450,000 was charged to the income

statement during the year

5. During the year impairment of good will was estimated to be $1,260,000

6. The revaluation reserve relates to freehold land and building

Required:

Statement of cash flow in accordance with international accounting standard (IAS) 7 "statement of cash flow"

(14 marks)

b) Discuss three categories of financial ratios (6 marks)

2. Question two

The following were the estimates and actual expenditure or AUDIX ministryfor the

financial year ended 30 June 2012:

Item Details Estimates Actual

$"000" $."000"

201 Basic salaries 96,000 92,400

a) General account of vote (3 marks)

b) Exchequer account (3 marks)

c) Paymaster general (PMG) account (3 marks)

d) Appropriation account for the year ended 30 June 2012 (8 marks)

e) Statement of assets and liabilities as at 30 June 2012 (3 marks)

3.Question three

Chris and bett are in a partnership sharing profits equally. They make handbags under the brand name

"CARY".

The partnership trial balance as at 31 December 2013 was as follows:

$

"000" $"000"

Capital Chris 24,000

Bett 24,000

Drawings Carol 5,000

Mary 4,800

Land 15,200

Factory building at cost 20,400

Accumulated depreciation on factory building 15,370

Delivery van at cost 8,100

Accumulated depreciation on delivery van 1,912

Inventory (1 January 2013):

Raw materials 2,300

Work in progress 2,210

Finished goods (10,250 handbags at $2,000 each) 20,500

Sales 63,000

Return inwards 112

Purchase of raw materials 14,590

Tax 3,960

Factory wages 7,630

office salaries 2,500

General expenses: Factory 7,730

Office 9,470

Plant at cost 17,220

Accumulated depreciation on plant 5,870

Provision for unrealized profit (1 January 2013) 2,050

Allowance for doubtful debts 770

Trade receivables and payables 10,680 2,640

Bank overdraft 4.670

148.442 148.442

Additional information

1. During the year ended 31,December 2013, 16,727 handbags were transferred to the warehouse at a

price of $ 2400 each

2. As at 31 December 2013, inventory was valued as follows:

Raw material - $1,900,000

Work in progress -$2,880,000

Finished goods - $17, 428,800

3. All handbags sold at $3200 each

4. The allowance for doubtful debt is to be maintained at 5% of the trade receivables

5. Accrued general expenses as at 31 December 2013 were as follows;

Factory - $1, 748, 000

Office - $764, 000

6. As at 31 December 2013, rent and rates were prepaid as follows:

Factory - $104, 000

Office - $80, 000

7. Depreciation is to be provided on cost as follows;

Assets Rate per annum

Factory building 2%

Plant 10%

Delivery vans 20%

8. Bett is entitled to 25% of the manufacturing profit based on the transfer price to the warehouse,

wile Bett is entitled to 10% of the trading gross profit

9. No interest is credited or charged on capital account or drawings.

Required:

a) Manufacturing account for the year ended 31 December 2013.

b) Income statement for the year ended 31 December 2013

c) Statement of financial position as at 31 December 2013

QUESTION TWO

(6 marks)

(8 marks)

(6 marks)