please solve the following questions for me
NUMBER FIVE (a) One of the key difference between non-profit making and commercial organizations is that they have different reasons for their existence. Consequently, non-profit making organizations follow some accounting principles which differ from those followed by commercial organizations. Required: Briefly discuss the role of accountants in both types of organizations. (12 marks) (b) The estimates and expenditure details relating to the Ministry of Social Services as at 30 June 2002 were as follows: Original Actual estimates expenditure Sh. '000' Sh. '000' 000 - Personal emoluments 160,000 180,000 050 - House allowances 30,000 26,000 080 - Passages and leave 10,000 9,000 110- Travelling expenses 44,000 46,000 140 - Electricity and water 12,000 13,000 220 - Purchase of plant and equipment 100,000 80,000 650 - Appropriation in Aid 30,000 24,000 Supplementary estimates authorized during the year were as follows: 000 - Personal emoluments Sh. 16,000,000 110- Travelling expenses (reduced) Sh. 4,000,000 Required: Appropriation account for the year ended 30 June 2002. Showing the net surplus to be surrendered to the Exchequer. (8 marks) (Total: 20 marks)Balance sheet as at 31 March 2003 2002 Sh. '000" Sh. '000' Assets: Non-current assets: Land and buildings 95,000 55,000 Motor vehicles 46,000 35,000 Furniture and fixtures 25.000 28.000 166,000 118,000 Current assets: Stocks 28,000 20,000 Debtors 14,000 16,000 Prepayments 6,000 8,000 Bank balance and cash in hand 3.000 48.000 47,000 Total assets 214.000 165.000 Equity and liabilities: Capital and reserves: Ordinary share capital 80,000 50,000 Share premium 20,000 15,000 Revaluation reserve 15,000 25,000 Retained profit 18,000 15.000 133.000 105,000 Non-current liabilities: 10% debentures 30,000 20,000 Bank loan 6.000 10.000 36-000 30,000 Current liabilities: Trade creditors 23,000 15,000 Interest payable 9,000 6,000 Current tax 6,000 5,000 Bank overdraft 4,000 Proposed dividends 3,000 4,000 45,000 30,000 Total equity and liabilities 214.000 165,000 The following additional information is provided for the year ended 31 March 2003: 1. Land and buildings were revalued upwards by Sh. 10,000,000 during the year. In addition, an acquisition of land and building of Sh. 40,000,000 was made. 2. Depreciation on motor vehicles amounting to Sh. 4,000,000 was provided in the profit and loss account for the year. Motor vehicles having a net book value of sh. 8,000,000 were sold at a profit of Sh. 3,000,000 during the year. 3. Bonus shares of Sh. 20,000,000 were issued as par during the year by utilizing the revaluation reserve Bongo Lid's ordinary shares have a par value of Sh. 20. 4. Interest expense charged to the profit and loss account for the year amounted to Sh. 8,000,000. 5. During the year, tax amounting to Sh. 6,000,000 was paid. 6. Total dividends for the year (both interim and proposed) amounted to Sh. 5,000,000. 7. The profit after tax for the year amounted to Sh. 8,000,000. Required: Cash flow statement (in accordance with the requirements of IAS 7) for the year ended 31 March 2003. (15 marks) (Total: 20 marks)(Total: 20 marks) NUMBER FOUR Briefly explain the importance of a cashflow statement to a business entity. (5 marks) (b) Bongo Led., a medium sized trading company, closes its books every 31 December. Given below are the comparative balance sheets of Bongo Led. for the years ended 31 March 2002 and 2003
