Question 1 The following balances were extracted from the nominal ledger of Jakkim Ltd at March 31 2019 '000 '000 Inventory at April 1 2018 270 Purchases 920 Carriage inwards 29 Carriage outwards 17 Selling expenses 105 Warehouse expenses 73 Warehouse wages 195 Office expenses 170 Office salaries 180 Rent and rates 62 Rent and rates 62 Interest paid 8 Telephone charges 13 Petty cash 12 Trade receivables 570 Suspense 10 Trade payables 165 1 ordinary shares 200 8% 1 preference shares 50 Ordinary dividends declared and paid 40 Preference dividends declared and paid 2. Preference dividends declared and paid 2 Profit and loss account at April 1 2018 102 Sales 2230 Bank overdraft 102 Office fixtures and fittings at cost 250 - Accumulated depreciation at April 1 2018 110 Salesmen's cars at cost 168 - Accumulated depreciation at April 1 2018 94 Commission received 20 3083 3083 Notes The suspense account represents 10.000 received from the sale of a salesman's car on April 1 The car had cost 24,000 and had been fully depreciated. No adjustment had yet been made to the Cars or Accumulated Depreciation accounts. Depreciation is to be provided for the year as follows:- Office fixtures and fittings - 10% using the reducing balance method. Salesmen's cars - 25% on cost Rent and rates includes 15,000 rent paid in respect of the quarter to April 30 Accrued office expenses are 1,000. A general reserve of 8,000 is to be set Inventory at March 31 2019 was 192,000 A customer owing 34,000 at the year-end went into liquidation on April 2 It is not expected that any of the money owed will be recovered. The company declared the final preference dividend on March 2 This dividend will be paid on May 4 2019. The corporation tax charge for the year is calculated to be 30,000. Required 1. i) Show the double entries for the end of year adjustments. (Notes a - 1) 7marks (% mark per double entry) 2. ii) Prepare the statement of Profit or Loss (Income statement) 5marks ii) Prepare the statement of changes in equity (SOCIETY) 3marks Required 1. i) Show the double entries for the end of year adjustments. (Notes a - i) 7marks (% mark per double entry) 2. i) Prepare the statement of Profit or Loss (Income statement) 5marks ii) Prepare the statement of changes in equity (SOCIETY) 3marks 1. iv) Prepare the Statement of Financial Position 9marks SHOW ALL WORKINGS (7marks available for workings) Total 31 marks