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Q2. You are presented with the following trial balance of Mafunso, a limited liability company, at 31 October 2022.

Dr Cr K'000 K'000 Buildings at cost 740 Buildings, accumulated depreciation, 1 November 2021 60 Plant at cost 220 Plant, accumulated depreciation, 1 November 2021 110 Land at cost 235 Bank balance 50 Revenue 1,800 Purchases 1,105 Discounts received 90 Returns inwards 35 Wages 180 Energy expenses 105 Inventory at 1 November 2021 160 Trade payables 250 Trade receivables 320 Administrative expenses 80 Allowance for receivables, at 1 November 2021 10 Directors' remuneration 70 Retained earnings at 1 November 2021 130 10% loan notes 50 Dividend paid 30 K1 ordinary shares 650 Share premium account 80 3,280 3,280 Additional information as at 31 October 2022: (a) Closing inventory has been counted and is valued at K75,000. (b) The items listed below should be apportioned as indicated. Cost of Distribution Administrative sales costs expenses % % % Discounts received 100 Energy expenses 40 20 40 Wages 40 25 35 Directors' remuneration 100 (c) An invoice of K15,000 for energy expenses for October 2022 has not been received. (d) Loan note interest has not been paid for the year. (e) The allowance for receivables is to be increased to 5% of trade receivables. Any expenses connected with receivables should be charged to administrative expenses. (f) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales. (g) Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses. (h) Income tax has been calculated as K45,000 for the year. Required Prepare the following financial statements for Mafunso in accordance with IAS 1 Presentation of financial statements: (a) The statement of profit or loss for the year ended 31 October 2022 (6 marks) (b) The statement of changes in equity for the year ended 31 October 2022 (3 marks) (c) The statement of financial position as at 31 October 2022 (6 marks) Q3. Briefly outline accounting standards IAS 2 and IFRS 15 with examples. (2 marks) Q4. Michanga Contractors Limited acquired equipment on 1 April 2002 on a Finance Lease. The Finance lease terms are: -Lease for a 10-year period -Each annual rental is K44, 000 -Rentals paid annually in areas on 31 March -Original cost of the equipment was K248, 610 -The interest rate implicit in the lease is 12% per year Required: Calculate the amounts in respect of this finance lease that would be included in Michanga Contractors Limited financial reports. a) Statement of comprehensive income for the year ended 31 March 2003 b) Statement of Financial Position as at 31 March 2003 c) Statement of cash flows for the year ended 31March 2003 (5 Marks)