Q.2.

One item is omitted in each of the following summaries of balance sheet and income statement datafor 2 companies A and B.

Particulars

Company A

(UGX)

Company B

(UGX)

At the beginning of the year

Assets

270,000,000

70,000,000

Liabilities

160,000,000

35,000,000

End of the year:

Assets

315,000,000

95,000,000

Liabilities

185,000,000

25,000,000

During the year:

Additional Capital

a

12,000,000

Withdraw

20,000,000

180,000,000

Total Revenue

87,750,000

b

Total expenses

72,750,000

32,000,000

a)Determine the amount of the missing figures shown by letters a and b(7 marks)

b)Using your knowledge acquired in this course, how would you explain the destination of cash and cash equivalents?(5marks)

c)With reference to the relevant accounting standard, describe the requirements and rationale of presenting cash flow statements in Advance accounting.(5marks)

d)Explain how you would treat events that happen after balance sheet as per IAS 10 with clear illustrations.(8marks)

Total 25 marks