OG: you don't need to answer all of them. Some will be fine.
DERBY LIMITED
The Company works in the Tourism industry in Mauritius. It started operations on 1 January 2018 and the following ledger balances appear in the books of accounts after the closing of the Final Accounts as at 31 December 2018.
LEDGER BALANCES AS AT 31 DECEMBER 2018 RS 000's RS 000's Trade Debtors 2,500 Share Capital 3,500 Motor Vehicles (At Cost) 1,500 Property (at Cost) 5,000 10% Debentures 4,000 Plant 8: Machinery (At Cost) 2,500 Share Premium 500 Trade Creditors 3,000 inventory 1,500 Income Tax Payable 70 Plant 8: Machinery (Agg. Depreciation) 475 Retained Earnings 1,000 Furniture & Fittings (At Cost) 500 Other Receivables 45 Furniture & Fittings (Agg Depreciation) 100 General Reserve 300 Motor Vehicles (Agg Depreciation) 600 Bank 100 Other Creditors 100 13,645 13,645 =D During the year to 31 December 2019, the summary of transactions is as follows: REMARKS Bank Credit RS RS Issue of Shares 1,000,000 Paid on 31 Payment to Debenture Holders 400,000 March 2019 Paid on 31 Interest paid on Debenture 400,000 March 2019 Property Revalued at 6,500,000 Received from Trade Debtors 7,300,000 Payment to Trade Creditors 5,000,000 Expenses 2,230,000 Income Tax paid 70,000 Sales 1,500,000 8,500,000 Purchases 1,450,000 8,000,000 Dividend Paid 100,000R5 Administrative Salaries 1,200,000 Rent, Rates 8: Taxes 300,000 Electricity 8: Telephone 150,000 Printing & Stationary 50,000 Licenses & Insurances 25,000 Motor Vehicle Expenses 150,000 Salesmen Salaries 240,000 Salesmen Commission 35,000 Carriage Outwards 30,000 Audit fees 50,000 2,230,000 =E Required: Marks Using an Excel spreadsheet prepare an Extended Trial balance at 31 1 December 2019 in the following sequence: a. Opening Trial Balance at 01 January 2019 2 b. Cash 8: Banking Transactions during the year 2 c. Credit Transactions during the year 2 d.Correction of Errors 6 e. Closing Trial Balance at 31 December 2019 3 f. Year End Adjustments 4 g. Profit 8: Loss Account 5 h. Balance Sheet 5 Using the Excel spreadsheet for the Extended Trial balance at 31 December 2 2019, prepare the following in IAS 1 format a.Statement of Profit 8: Loss Account 8: Other Comprehensive Income for the year ended 31 December 2019 3 b. Statement of Changes in Equity for the year ended 31 December 2019 2 c. Statement of Financial Position at 31 December 2019 with comparative gures for 2018 d. Statement of Cash Flows for the year ended 31 December 2019 using the Indirect Method Calculate the following ratios for both 2018 and 2019 and comment on the 3 same a. Working Capital Ratio b. Acid Test Ratio c. Debts Ratio d. Gearing Ratio 4 Calculate the following ratios for 2019 only and comment on the same a. Receivables Collection Period b. Payables Collection Period c. inventory Turnover Period d. Return on Capital Employed (ROCE) 5 Explain why Profit is not equivalent to Cash using examples 6 Explain why Cash Flow is important in business In light of Covid 19Ithe Wakashio effect and the uncertainty of the opening of 7 the Mauritius frontiers to Tourists, what are the implications for the company? Prepare the Notes to the Financial Statements for the year ended 31 8 December 2019 10 Total 100
