Question
Maendeleo Ltd. is a manufacturing company operating through a number of branches in Kenya. The following information relates to Maendeleo Ltd.s operations for the year
Maendeleo Ltd. is a manufacturing company operating through a number of branches in Kenya. The following information relates to Maendeleo Ltd.s operations for the year ending 31 December 2020.
|
| Sh 000 | Sh 000 |
| Turnover |
| 19,480.00 |
| Cost of goods sold |
| 5,620.00 |
| Gross profit |
| 13,860.00 |
| Foreign exchange gain |
| 148.00 |
| Insurance recovery for stolen motor vehicle |
| 968.00 |
| Proceeds from sale of factory extension |
| 469.00 |
|
|
| 40,545.00 |
| Less Expenses |
|
|
| Directors emoluments and staff costs | 16,890.00 |
|
| Pension contribution for staff | 4,200.00 |
|
| Staff recruitment cost | 1,148.00 |
|
| Purchase of furniture | 420.00 |
|
| Penalties on overdue VAT | 164.00 |
|
| Impairment loss of factory extension | 150.00 |
|
| Mortgage interest | 364.00 |
|
| Goodwill written off | 162.00 |
|
| Loan interest | 1,286.00 |
|
| Depreciation | 908.00 |
|
| General office expenses | 1,348.00 |
|
|
|
| 27,040.00 |
Additional information
- Details of property, plants and equipment schedule reflected the following details for the assets that existed before the year ending 31st December 2020:
| Assets | Written Down Value 1 Jan 2020 | Additions at Cost (2020) | Depreciation (2020) | Disposal Proceeds (2020) |
|
| sh. | sh. | sh. | sh. |
| Computers | 525,000.00 | 345,400.00 | 131,520.00 | 250,000.00 |
| Water pump | - | 280,000.00 | 56,000.00 | - |
| Furniture | 360,000.00 | 140,000.00 | 82,000.00 | - |
| Conveyor belts | - | 960,000.00 | - | - |
| Delivery vans | 2,500,000.00 | 142,000.00 | 180,000.00 | 620,000.00 |
| Cash registers | 620,000.00 | - | 58,000.00 | - |
| Printers | 120,000.00 | 60,000.00 | 42,000.00 | - |
| Tractors | 2,500,000.00 | 1,800,000.00 | 360,000.00 | - |
| Motorcycles | 380,000.00 | - | 68,000.00 | - |
| Packaging machine | - | 860,000.00 | - | - |
| Non-processing machinery | 960,000.00 | - | 62,000.00 | - |
- A perimeter wall was constructed at cost of sh.960,000 during the year ending 31st December 2020 used from 1st March 2020
- A go down and drainage system were constructed at cost sh.2,860,000 and sh.1,780,000 respectively put into use on 1st April 2020.
- The company constructed a borehole at cost of sh.1,500,000 during the year which was put in use on 1st July 2020
Required
Capital allowance due to Maendeleo ltd for the year ending 31st December 2020
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New Challenges For Future Sustainability And Wellbeing
Authors: Ercan Özen, Simon Grima, Rebecca Dalli Gonzi
1st Edition
1800439695, 9781800439696
