Question 3 (25 MARKS)

You have been requested by the directors of Botho Limited to help them prepare the financial statements for the year ended 30 September 2016. The directors have supplied you with the companys trial balance as shown below;

Botho Ltd

Trial Balance as at 30 September 2016	(P000)
Inventory as at 1 October 2015	4 219
Property plant and equipment	37 524
Accumulated depreciation on property, plant and equipment	12 683
Ordinary share capital	6 000
Share premium	2 000
Revaluation reserve	2 000
Retained earnings	9 236
Trade payables	2 045
8% bank loan	6 000
Sales	37 299
Purchases	22 387
Trade receivables	4 175
Distribution costs	5 211
Administration expenses	3 107
Dividends paid	300
Accruals	46
Cash at Bank	146
Interest	240

Additional information

1. Credit sales of P557 000 were made in September 2016, but were recorded in the accounts in October 2016

2. The inventory at the close of business on 30 September 2016 were valued at cost P5 384 000. However, items that had a cost of P480 000 will only be sold for P200 000 in the coming year.

3. Distribution costs amounting to P242 000 were incurred before the year end, but have not yet been invoiced to the company

4. Interest on the bank loan has not been paid or charged in the accounts for the last 6 months of the year.

5. The corporation tax charge for the year has been calculated as P2 048 000

6. Land and buildings included in the property, plant and equipment at a carrying amount of P8 000 000 are to be revalued at the year at P9 000 000

7. All of the operations of the business are continuing operations

Required:

Draft a statement of comprehensive income for Botho Limited for the year ended 30 September 2016. Note that the financial statements should comply with the requirements of the relevant accounting standards.

NB: Notes are not required But show all your working