help q 4

QUESTION FOUR 2022: The following is a trial balance of Gired Company Limited for the year ending 31 March Shs"000 Shs 500 40.000 12.000 10.000 83.000 90.000 10,000 25,200 Equity shares of 20 cents cach Share premium Revaluation reserves on financial asset note 8% convertible loan note March 2025 Retained earnings at 1 April 2021 Revenue Freehold property at cost 1 April 2017 Plant and equipment at cost [note] Accumulated depreciation - 1 April 2021- Building - Plant and equipment Available for sale investments on 1 April 2021 26,200 Cost of sales 236,800 Distribution costs 27,400 Administrative expense 41,500 Loan Interest paid [note (0) 1,600 Investment income 15,000 Current tax (note (1) 2,700 Inventory at 31 March 2022 36,000 Trade receivables 41,300 Bank 13,500 Trade payables 45,900 Deferred tax Tnote () 7,400 600,000 600,000 The following notes are relevant: (1) The 8% convertible loan note was issued for proceeds of Shs. 20 million on 1 April 2021. It has an effective interest rate of 10% due to the value of its conversion option. (1) The available-for-sale investments (the Shs. 26.2 million in the trial balance) have a fair value of Shs. 30 million at 31 March 2022. The other reserve in the trial balance represents the net increase in the value of the available for sale investments as at 1 April 2021. Ignore deferred tax on these transactions (1H1) The balance on current tax represents the under/over provision of the tax liability for the year ended 31 March 2021. The directors have estimated the provision for income tax for the year ended 31 March 2022 at Shs. 18-4 million. At 31 March 2022 the carrying amounts of Salarna's net assets were Shs. 15 milion in excess of their tax base. The income tax rate of Salama is 30% (iv)Non-current assets: was no change on the economic useful life of the machine i.e. the remaining economic useful life on 1 April 2021 was nine years. (ii) Ignore the effect of deferred tax on revaluation; secondly the company does not transfer the revaluation surplus. (iv) The financial year of the company ends on 31 March every year. Required: Present the financial statement extracts for Covid Company Limited for the year ending 31 March 2021 and 2022. (14 marks) (Total: 20 marks) QUESTION FOUR 2022: The following is a trial balance of Gired Company Limited for the year ending 31 March Shs"000 Shs 500 40.000 12.000 10.000 83.000 90.000 10,000 25,200 Equity shares of 20 cents cach Share premium Revaluation reserves on financial asset note 8% convertible loan note March 2025 Retained earnings at 1 April 2021 Revenue Freehold property at cost 1 April 2017 Plant and equipment at cost [note] Accumulated depreciation - 1 April 2021- Building - Plant and equipment Available for sale investments on 1 April 2021 26,200 Cost of sales 236,800 Distribution costs 27,400 Administrative expense 41,500 Loan Interest paid [note (0) 1,600 Investment income 15,000 Current tax (note (1) 2,700 Inventory at 31 March 2022 36,000 Trade receivables 41,300 Bank 13,500 Trade payables 45,900 Deferred tax Tnote () 7,400 600,000 600,000 The following notes are relevant: (1) The 8% convertible loan note was issued for proceeds of Shs. 20 million on 1 April 2021. It has an effective interest rate of 10% due to the value of its conversion option. (1) The available-for-sale investments (the Shs. 26.2 million in the trial balance) have a fair value of Shs. 30 million at 31 March 2022. The other reserve in the trial balance represents the net increase in the value of the available for sale investments as at 1 April 2021. Ignore deferred tax on these transactions (1H1) The balance on current tax represents the under/over provision of the tax liability for the year ended 31 March 2021. The directors have estimated the provision for income tax for the year ended 31 March 2022 at Shs. 18-4 million. At 31 March 2022 the carrying amounts of Salarna's net assets were Shs. 15 milion in excess of their tax base. The income tax rate of Salama is 30% (iv)Non-current assets: was no change on the economic useful life of the machine i.e. the remaining economic useful life on 1 April 2021 was nine years. (ii) Ignore the effect of deferred tax on revaluation; secondly the company does not transfer the revaluation surplus. (iv) The financial year of the company ends on 31 March every year. Required: Present the financial statement extracts for Covid Company Limited for the year ending 31 March 2021 and 2022. (14 marks) (Total: 20 marks)