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 | |
Cost of goods sold | 5,620 | |
Gross profit | 13,860 | |
Foreign exchange gain | 148 | |
Insurance recovery for stolen motor vehicle | 968 | |
Proceeds from sale of factory extension | 469 | |
40,545 | ||
Less Expenses | ||
Directors emoluments and staff costs | 16,890 | |
Pension contribution for staff | 4,200 | |
Staff recruitment cost | 1,148 | |
Purchase of furniture | 420 | |
Penalties on overdue VAT | 164 | |
Impairment loss of factory extension | 150 | |
Mortgage interest | 364 | |
Goodwill written off | 162 | |
Loan interest | 1,286 | |
Depreciation | 908 | |
General office expenses | 1,348 | |
27,040 | ||
13,505 |
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:
- 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
Assets | Written Down Value 1 Jan 2020 | Additions at Cost (2020) | Depreciation (2020) | Disposal Proceeds (2020) |
sh. | sh. | sh. | sh. | |
Computers | 525,000 | 345,400 | 131,520 | 250,000 |
Water pump | - | 280,000 | 56,000 | - |
Furniture | 360,000 | 140,000 | 82,000 | - |
Conveyor belts | - | 960,000 | - | - |
Delivery vans | 2,500,000 | 142,000 | 180,000 | 620,000 |
Cash registers | 620,000 | - | 58,000 | - |
Printers | 120,000 | 60,000 | 42,000 | - |
Tractors | 2,500,000 | 1,800,000 | 360,000 | - |
Motorcycles | 380,000 | - | 68,000 | - |
Packaging machine | - | 860,000 | - | - |
Non-processing machinery | 960,000 | - | 62,000 | - |
Required
- Capital allowance due to Maendeleo ltd for the year ending 31st December 2020
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