QUESTION 1 1. The Following balances were obtained from the books of The Future Ink Company LTD for the year ending March 31, 2021 DETAILS General Reserve Building 10% Debenture Sales Purchases Camage Inwards Delivery Charges Salesmen Salary Rent and Rates Insurance Light and Heating Repairs and Maintenance Office Salaries Salesmen Commission Auditors fees Directors fees Interim Ord Shares Dividend 120 Furniture and fittings Provision for Depreciation (Furniture & Fittings) Ord. Share capital @ $0.50 Provision for Bad Debt. Debtors Creditors Goodwill Stock at April 1,2020 Retained earnings b/d Interest Paid Short Term Deposits Cash at Bank 10% Pref Shares ITE DR 75000 2800000 4000 15000 80000 100000 14700 12300 21200 50000 17400 1500 20000 4000 82000 160000 300000 80000 3500 10000 150950 CR 50,000 70000 3,500000 32800 100000 13000 180000 -35750 20000 4.001 550 4.001.550 Additional Information Included: 1. Furniture and Fittings is to be depreciated by 5% on cost 2. Repairs and Maintenance is owing by 3000 3. Salesman commission is owing for 2,000 4. Corporation tax is estimated at 75000 5. Stock at year end is valued at 100,000 6. Final ordinary dividends at 5c per share, as well as the preference share dividends should be accounted for this year 7 The provision for bad debt is to be adjusted to 10% of debtors 8. Write off 25% of goodwill 9 Transfer 15000 to general reserves Prepare the following: 1. The statement of profit and loss for the year ending March 31, 2021 Marks -20 2. The statement of changes in equity for the year ending March 31,2021 Marks=5 3. The statement of financial position as at March 31,2021 Marks = 15