Question 1 Oasis Limited 35 Marks The following is a list of balances extracted from the accounts of Oasis Limited, an electrical retailer, as at 31 December 2016: '000 4,220 33,500 80 3,780 124 160 49 Trade receivables Revenue Revenue returns Recruitment Wages & salaries Professional fees Light & heat Rates Insurance Motor expenses Interim ordinary dividend Telephone Buildings cost Buildings accumulated depreciation (01/01/16) Inventory (01/01/16) 6% Debentures (issued 01/11/14) Motor vehicles cost Motor vehicles accumulated depreciation (01/01/16) Vat payable Trade discount received Purchases Trade payables Marketing expenses Sales commission expense Retained earnings (01/01/16) Cash at bank Accruals (01/01/16) Prepayments (01/01/16) Ordinary share capital 6,250 1,719 3,850 500 140 79 441 125 24,400 2.570 210 117 4,787 1,649 " 1,600 The following additional information is provided: (1) Depreciation is to be provided using the following rates: Buildings 2.5% straight line method Motor vehicles 25% reducing balance method A full year's depreciation is provided in the year of acquisition and nil in the year of disposal. (2) The opening accrual related to the following accounts: Wages & salaries 15,000 Light & heat 12,000 (3) The opening prepayment of 8,000 related to rates. (4) Professional fees of 4,000 were prepaid at 31 December 2016, (5) Taxation for the year ended 31 December 2016 has been estimated at 1,300,000. (6) Inventory on hand at 31 December 2016 was valued at 3,925,000 and its net realizable value estimated to be 3,965,000. (7) Provision should be made for the debenture loan interest. (8) The company acquired an additional motor vehicle on credit in December 2016 at a cost of 24,000. This transaction was not recorded in the above listing of balances. Requirement: Prepare an income statement for Oasis Limited for the year ended 31 December 2016 together with a balance sheet as at that date. Show all workings. (35 marks) Question 1 Oasis Limited 35 Marks The following is a list of balances extracted from the accounts of Oasis Limited, an electrical retailer, as at 31 December 2016: '000 4,220 33,500 80 3,780 124 160 49 Trade receivables Revenue Revenue returns Recruitment Wages & salaries Professional fees Light & heat Rates Insurance Motor expenses Interim ordinary dividend Telephone Buildings cost Buildings accumulated depreciation (01/01/16) Inventory (01/01/16) 6% Debentures (issued 01/11/14) Motor vehicles cost Motor vehicles accumulated depreciation (01/01/16) Vat payable Trade discount received Purchases Trade payables Marketing expenses Sales commission expense Retained earnings (01/01/16) Cash at bank Accruals (01/01/16) Prepayments (01/01/16) Ordinary share capital 6,250 1,719 3,850 500 140 79 441 125 24,400 2.570 210 117 4,787 1,649 " 1,600 The following additional information is provided: (1) Depreciation is to be provided using the following rates: Buildings 2.5% straight line method Motor vehicles 25% reducing balance method A full year's depreciation is provided in the year of acquisition and nil in the year of disposal. (2) The opening accrual related to the following accounts: Wages & salaries 15,000 Light & heat 12,000 (3) The opening prepayment of 8,000 related to rates. (4) Professional fees of 4,000 were prepaid at 31 December 2016, (5) Taxation for the year ended 31 December 2016 has been estimated at 1,300,000. (6) Inventory on hand at 31 December 2016 was valued at 3,925,000 and its net realizable value estimated to be 3,965,000. (7) Provision should be made for the debenture loan interest. (8) The company acquired an additional motor vehicle on credit in December 2016 at a cost of 24,000. This transaction was not recorded in the above listing of balances. Requirement: Prepare an income statement for Oasis Limited for the year ended 31 December 2016 together with a balance sheet as at that date. Show all workings. (35 marks)