Question 2 Below is the Trial Balance of Marks Supermarket as at 31 March 2010. Dr Cr Pula Pula Purchases and sales 328 000 960 000 Inventory at 1 April 2009 60 000 10% Debenture 400 000 Accounts receivables/ payables 100 000 80 000 Cash/Bank 68 000 Retained profit at 1 April 2009 620 000 General reserve 80 000 Advertisement 50 000 Audit fees 24 000 Interim dividend 30 000 Debenture interest 20 000 General expenses 84 000 Building at cost 800 000 Provision for depreciation(building) 60 000 Plant at cost 1 600 000 Provision for depreciation ( Plant) 380 000 Ordinary shares of P10 each 600 000 8% preference share capital 200 000 Wages and salaries (administration) 100 000 Salesmen salaries 60 000 Carriage inwards 16 000 Rent and rates 40 000 Total 3 380 000 3 380 000 Additional information: 1. Property, plant and equipment to be depreciated as follows: Buildings at 5% using straight line method, Plant at 10% using reducing balance method. All depreciation for the year was to be charged to administration. 2. The amount of inventory as at 31 March 2010 was P80 000. 3. An amount of P58 000 was to be provided for taxation for the year ended 31 March 2010. 4. Rent paid in advance amounted to P16 400. 5. General expenses were to be allocated as follows: 2/3 to administration and 1/3 to distribution. 6. An amount of P80 000 was to be transferred to general reserve. 7. A 10% final dividend on ordinary shares was declared. 8. Preference dividend has not yet been paid. Required to prepare the following financial statements for Marks Supermarket: a) Statement of comprehensive income( income statement) for the year ended 31 March 2010 b) Statement of Changes in Equity for the year ended 31 March 2010 c) Statement of financial position (Balance Sheet) as at 31 March 2010