QUESTION $1$

The following additional information is available:

$1.$ At September $30,2023$ closing inventory was $$32,000$

$2.$ The Accountant has determined that the estimate for the provision for bad debts at September $30,2023$ is $10\%$ of debtors.

$3.$ At the end of the period it was discovered that one employee was owed $$2,000$ in salaries while another was overpaid by $$4,000.$ Additionally insurance prepaid was $$300$

$4.$ The following appropriation of the expenses must be made

Admin Selling & Dist

Rent $80\%20\%$

Wages & Salaries $60\%40\%$

Insurance $50\%50\%$

Prov. for Depreciation $70\%30\%$

$5.$ On June $1,2023$ the company rented some of its office space to Breezy Ltd$.$ At that date Breezy Ltd paid rent covering the next nine months.

$6.$ Depreciation should be provided as follows:

Land Nil

Buildings $2$ percent per year on cost

Furniture & Fittings $20$ percent per year on reducing balance

$7.$ Goodwill impairment was estimated to be $20\%.$

$8.$ Corporation tax is estimated to be $$42,000$

$9.$ The directors proposed on September $20,2023$ to pay the final preference dividends.

At a board of directors meeting on October $19,2023$ the directors evaluated the performance of the business over the past financial year and proposed to pay a further $6\%$ ordinary dividend.

Required:

$($a$)$ Prepare the following for McKie Ltd for the financial year ending September $30,2023$:

i$.$ Statement of Profit or Loss $(15$ marks$)$

ii$.$ Statement of changes in equity $(5$ marks$)$

iii. Statement of Financial Position. $(10$ marks$)$