Notes

a) Prepayments and Accruals at 30.06.03 are;

Prepayments000 Accruals000 Salaries 500 2,900 Insurance 1,600 Salesmen commission 2,000 Auditors Remuneration 5,200

b) It has been confirmed that shs. 5,000,000 from a debtor who has been declared bankrupt are irrecoverable and therefore should be written off as bad debts. The company decides to allow for doubtful debts at 2% of the remaining debtors.

c) Corporation tax is charged at 30% on profits

d) Depreciation is at 10% straight line for furniture and fittings, and 25% reducing balance for motor vehicles

e) Stock at 30.06.03 is valued at shs. 125,600,000

f) Transfer shs. 15,000,000 to Bonds Redemption Reserve.

g) A final dividend of shs. 200 per share is proposed.

REQUIRED presentation to the directors;

1. A statement of financial position as at 30.06.03
2. Statement of comprehensive income for the year ending 30.06.03

estion one The following is the trial balance at 30th June 2003 of KYU Wholesaler Ltd. Account Titles Debitooo Credit'000' Purchases and Sales 412,800 704,000 Transport on purchases 7,600 Discounts 9,200 27,200 Wages and salaries 38,400 Advertising 13,600 Insurance 6,400 Transport on sales 31,200 Interest on 13% Bonds 5,200 Salesmen commission 16,400 Rent and rates 36,000 Electricity 18,800 Directors' Remuneration 40,000 Repairs and maintenance 4,400 Interim dividend at shs. 100 a share paid 1.1.03 12,000 Furniture and fittings 61,600 Accum. Depreciation on Furniture and fittings 33,200 Motor vehicles 28,800 Accum. Depreciation Motor vehicles 20,400 Debtors and Creditors 190,000 70.000 Goodwill at cost 128,000 Share capital shs. 1,000 Ordinary shares 120,000 Stock at 01.07.02 114,000 Retained profits 42,800 Share premium 60,000 Bank 16,800 13% Bonds, 2002/2003 80,000 Totals 1,174,400 1,174,400 Notes a) Prepayments and Accruals at 30.06.03 are; estion one The following is the trial balance at 30th June 2003 of KYU Wholesaler Ltd. Account Titles Debitooo Credit'000' Purchases and Sales 412,800 704,000 Transport on purchases 7,600 Discounts 9,200 27,200 Wages and salaries 38,400 Advertising 13,600 Insurance 6,400 Transport on sales 31,200 Interest on 13% Bonds 5,200 Salesmen commission 16,400 Rent and rates 36,000 Electricity 18,800 Directors' Remuneration 40,000 Repairs and maintenance 4,400 Interim dividend at shs. 100 a share paid 1.1.03 12,000 Furniture and fittings 61,600 Accum. Depreciation on Furniture and fittings 33,200 Motor vehicles 28,800 Accum. Depreciation Motor vehicles 20,400 Debtors and Creditors 190,000 70.000 Goodwill at cost 128,000 Share capital shs. 1,000 Ordinary shares 120,000 Stock at 01.07.02 114,000 Retained profits 42,800 Share premium 60,000 Bank 16,800 13% Bonds, 2002/2003 80,000 Totals 1,174,400 1,174,400 Notes a) Prepayments and Accruals at 30.06.03 are