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QUESTION 1 (35 Marks: 63 minutes) ABC Limited was incorporated in 2010 with an authorized capital consisting -0 000 000 ordinary shares. ou have been asked to help prepare the financial statements of ABC Ltd for the rear ended 31 December 2020. The company's trial balance as at 31 December 2020 is hown below. Dr N$ 000 Cr N$ '000 28 000 292 8% Debentures (redeemable 2026) Accruals Administrative expenses Cash at bank Distribution costs Final dividend for year ended 31 December 2020 Interest Interim dividend for the year 31 December 2020 Inventories as at 1 January 2020 Property, Plant and Equipment Accumulated depreciation at 1 January 2020 Purchases Retained earnings Returns inwards Returns outwards Sales Share Capital Accounts and other payables Accounts and other receivables 6 888 19 308 4 900 1 080 1 120 780 8932 79 760 43 560 65 552 6930 688 446 93 554 18 000 2 694 4 468 193 476 193 476 Additional information: 1. The share capital of the company consists of ordinary shares with a nominal value of N$1 each. Ms Joey Kyegomhe formation: are capital of the company consists of ordinary shares with a nomi of N$1 each. ventories at the close of business on 31 December 20X9 were valu 974 000, this consists of: a) Raw materials: N$ 3 500 000 b) WIP N$ 3 550 000 c) Finished goods N$ 2 500 000 d) Consumable stores N$ 424 000 mpany paid N$1 440 000 for one year's insurance on 1 February 2020; 5 due to expire on 31 January 2021. This should be allocated to istration. ompany hired vehicles to distribute finished goods locally. It was able to ate a deal with a local company for the period 1 September to uomber 2000 at a cost of N$198.000. This was invoiced on 6 December Ms Joey Kvenomhe any pald N$1 440 000 for one year's Insurance on 1 February 2020; ue to expire on 31 January 2021. This should be allocated to ation. pany hired vehicles to distribute finished goods locally. It was able to a deal with a local company for the period 1 September to mbor 2020 at a cost of N$198 000. This was invoiced on 6 December d paid, in full, on 1 March 2021. No entry has been made in the 3. on the bank loan for the last six months of the year has not been in the accounts in the trial balance. ation for the year amounts to N$ 300 000, a half of this amount is to be oned to cost of sales and the remaining balance equally between tion costs and administrative expenses. mpany made a bonus issue of 2 500 000 ordinary shares out of retained gs but has not made any accounting entries for this. x charge for the year has been calculated as N$1 960 000. Marks 13% the statement of profit or loss and other comprehensive for ABC Ltd for the year ended 31 December 2020 to comply nimum requirements of companies Act 2008 and International al Reporting Standards, using expenses by function method. Fative information is not required, ent of financial position as at 30 September 2020 to comply with uirement Companies Act 71 of 2008 and International Financial ing Standards (IFRS). Comparative information is required. 9 e the notes to the financial statement for the year ending 31 aber 2020 to comply with minimum requirements of companies 108 and International Financial Reporting Standards with respect 1272 Statement of compliance Statement of significant accounting policies Ms Joey Kyegombe University of Namibia 8. The tax charge for the year has been calculated as UIRED: Prepare the statement of profit or loss and other compre income for ABC Ltd for the year ended 31 December 2020 to with minimum requirements of companies Act 2008 and Inter Financial Reporting Standards, using expenses by function Comparative information is not required. Statement of financial position as at 30 September 2020 to com the requirement Companies Act 71 of 2008 and International F Reporting Standards (IFRS). Comparative information is reque Prepare the notes to the financial statement for the year en December 2020 to comply with minimum requirements of con Act 2008 and International Financial Reporting Standards with to: (0) Statement of compliance (ii) Statement of significant accounting policies Inventory, (iv) Revenue and (v) Share capital. Total QUESTION 1 (35 Marks: 63 minutes) ABC Limited was incorporated in 2010 with an authorized ca 40 000 000 ordinary shares. You have been asked to help prepare the financial statements a year ended 31 December 2020. The company's trial balance as at 31 shown below. Dr N$ 000 8% Debentures (redeemable 2026) Accruals Administrative expenses Cash at bank Distribution costs Final dividend for year ended 31 December 2020 Interest Interim dividend for the year 31 Decomber 2020 Inventories as at 1 January 2020 Property. Plant and Equipment Accumulated depreciation at 1. January 2020 Purchases Retained earnings Returns inwards 1-3-1 Returns outwards Sales Share Capital Mocounts and other payables Accounts and other receivables 6 88 19 30 4 900 1080 1 12 780 8 932 79 760 65 552 688 4 468 193 476 Additional information: 1. The share capital of the company consists of ordinary share value of N$1 each. 2. The inventories at the close of business on 31 December 20 a NS 9 974 000, this consists of a Ravnaterals: NS 3 500 000 by WIP NS 3 550 000 c) Finished goods N$ 200 000 dy Consumable stores NS 424 000 QUESTION 1 (35 Marks: 63 minutes) ABC Limited was incorporated in 2010 with an authorized capital consisting -0 000 000 ordinary shares. ou have been asked to help prepare the financial statements of ABC Ltd for the rear ended 31 December 2020. The company's trial balance as at 31 December 2020 is hown below. Dr N$ 000 Cr N$ '000 28 000 292 8% Debentures (redeemable 2026) Accruals Administrative expenses Cash at bank Distribution costs Final dividend for year ended 31 December 2020 Interest Interim dividend for the year 31 December 2020 Inventories as at 1 January 2020 Property, Plant and Equipment Accumulated depreciation at 1 January 2020 Purchases Retained earnings Returns inwards Returns outwards Sales Share Capital Accounts and other payables Accounts and other receivables 6 888 19 308 4 900 1 080 1 120 780 8932 79 760 43 560 65 552 6930 688 446 93 554 18 000 2 694 4 468 193 476 193 476 Additional information: 1. The share capital of the company consists of ordinary shares with a nominal value of N$1 each. Ms Joey Kyegomhe formation: are capital of the company consists of ordinary shares with a nomi of N$1 each. ventories at the close of business on 31 December 20X9 were valu 974 000, this consists of: a) Raw materials: N$ 3 500 000 b) WIP N$ 3 550 000 c) Finished goods N$ 2 500 000 d) Consumable stores N$ 424 000 mpany paid N$1 440 000 for one year's insurance on 1 February 2020; 5 due to expire on 31 January 2021. This should be allocated to istration. ompany hired vehicles to distribute finished goods locally. It was able to ate a deal with a local company for the period 1 September to uomber 2000 at a cost of N$198.000. This was invoiced on 6 December Ms Joey Kvenomhe any pald N$1 440 000 for one year's Insurance on 1 February 2020; ue to expire on 31 January 2021. This should be allocated to ation. pany hired vehicles to distribute finished goods locally. It was able to a deal with a local company for the period 1 September to mbor 2020 at a cost of N$198 000. This was invoiced on 6 December d paid, in full, on 1 March 2021. No entry has been made in the 3. on the bank loan for the last six months of the year has not been in the accounts in the trial balance. ation for the year amounts to N$ 300 000, a half of this amount is to be oned to cost of sales and the remaining balance equally between tion costs and administrative expenses. mpany made a bonus issue of 2 500 000 ordinary shares out of retained gs but has not made any accounting entries for this. x charge for the year has been calculated as N$1 960 000. Marks 13% the statement of profit or loss and other comprehensive for ABC Ltd for the year ended 31 December 2020 to comply nimum requirements of companies Act 2008 and International al Reporting Standards, using expenses by function method. Fative information is not required, ent of financial position as at 30 September 2020 to comply with uirement Companies Act 71 of 2008 and International Financial ing Standards (IFRS). Comparative information is required. 9 e the notes to the financial statement for the year ending 31 aber 2020 to comply with minimum requirements of companies 108 and International Financial Reporting Standards with respect 1272 Statement of compliance Statement of significant accounting policies Ms Joey Kyegombe University of Namibia 8. The tax charge for the year has been calculated as UIRED: Prepare the statement of profit or loss and other compre income for ABC Ltd for the year ended 31 December 2020 to with minimum requirements of companies Act 2008 and Inter Financial Reporting Standards, using expenses by function Comparative information is not required. Statement of financial position as at 30 September 2020 to com the requirement Companies Act 71 of 2008 and International F Reporting Standards (IFRS). Comparative information is reque Prepare the notes to the financial statement for the year en December 2020 to comply with minimum requirements of con Act 2008 and International Financial Reporting Standards with to: (0) Statement of compliance (ii) Statement of significant accounting policies Inventory, (iv) Revenue and (v) Share capital. Total QUESTION 1 (35 Marks: 63 minutes) ABC Limited was incorporated in 2010 with an authorized ca 40 000 000 ordinary shares. You have been asked to help prepare the financial statements a year ended 31 December 2020. The company's trial balance as at 31 shown below. Dr N$ 000 8% Debentures (redeemable 2026) Accruals Administrative expenses Cash at bank Distribution costs Final dividend for year ended 31 December 2020 Interest Interim dividend for the year 31 Decomber 2020 Inventories as at 1 January 2020 Property. Plant and Equipment Accumulated depreciation at 1. January 2020 Purchases Retained earnings Returns inwards 1-3-1 Returns outwards Sales Share Capital Mocounts and other payables Accounts and other receivables 6 88 19 30 4 900 1080 1 12 780 8 932 79 760 65 552 688 4 468 193 476 Additional information: 1. The share capital of the company consists of ordinary share value of N$1 each. 2. The inventories at the close of business on 31 December 20 a NS 9 974 000, this consists of a Ravnaterals: NS 3 500 000 by WIP NS 3 550 000 c) Finished goods N$ 200 000 dy Consumable stores NS 424 000