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Kapula Limited is a diversified enterprise with main interests in the manufacture of books. The Trial Balance on 31 December 2012 is set out below:
Kapula Limited is a diversified enterprise with main interests in the manufacture of books. The Trial Balance on 31 December 2012 is set out below: Dr Cr Capital-Common stock 300,000 Cumulative Preference stock 100,000 Reserves 200.000 Retained eaming 31/12/2011) 283,500 Patents and trademark 215,500 Land 250,000 Leasehold property 80,000 Factory plant & equipment at cost 150,000 Accum depreciation Plant & upment 31/12/2011 68,500 Furniture and fittings at cost 50,000 Accum depreciation F&F 31/12/2011 15,750 Motor vehicles at cost 75,000 Hocum depreciation-Motor vehicle 31/12/2011 25,000 10% Loan 100,000 Tmde receivables 177,630 Trade payables 97,500 Bank overdrant 51.250 Openingstock 325,650 Purchases 750.600 Carriage inward raw materials 10,500 Manufacturing wages 250.000 Manufacturing overheads 125.000 Cash 5,120 Sales 1,526,750 Administration expenses 158, 100 Seling and distribution 116,800 Legal and professionales 54,100 Provision for bad debts 5,750 Total 2,774,000 2.774,000 Additional information: a) Inventories at 31 December 2012 were K425,750 b) Depreciation for the year is to be charged as follows: . Plant and equipment 8% on cost-charged to production Furniture and fixtures 10% on cost-charged to admin Page 1 Motor vehicles 20% at cost - 25% admin, -75% seling and distribution c) Financial, legal and professional experses include foes for purchase of freehold land during year K5,000 d) Provision is to be made for a full year's interest on the loan notes e) Income tax on the profits for the year is estimated at K40,000 and is due for payment on 28 February 2013 1) The leasehold land and buildings are held on a 50 year lease. Required a) Prepare Kapula Limited spirofloss account for the year ended 31 December 2012 (10 marks) (b) Prepare Kapula Limited's statement of financial position as at 31 December 2012
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