Question 3 (30 marks) The following trial balance has been extracted from the "ABC Trading Limited" on 31 March 2019: Credit $ 5,449,800 336,000 210,000 101,600 24,000 246,800 Trial Balance as at 31 March 2019 Debit $ Purchases and sales 3,363,780 Carriage inwards 99,820 Fixture and fitting, at cost 1,150,000 Motor vans, at cost 710,000 Accumulated depreciation, at 1 April 2018 -Equipments -Motor vehicles Return inwards and outwards 156,800 Discount allowed and received 35,000 Trade receivables and payables 429,400 Inventory, at 1 April 2018 377,500 Debenture interest paid 7,000 Administrative expenses 540,800 Selling and distribution expenses 392.900 Director's fee 84,000 Other operating expenses 283,400 Intrim dividend paid 70,000 Cash at bank and in hand 270,500 Allowance for doubtful debts, at 1 April 2018 Ordinary share capital 4% Debenture, repayable in 2025 Share premium General reserve Retained profits, at 1 April 2018 7,970,900 The following additional information is available: 18,200 1,000,000 350,000 80,000 60,000 94,500 7,970,900 (1) Inventory at 31 March 2019 was valued at cost of $392,500 and at net realizable value of $334,000. (2) Sales commission of $5,000 was owing at 31 March 2019. (3) The debentures were issued on 1 July 2018 and interest is payable ..ill csl. @87% 2 7:19 PM moodle.thei.edu.hk The debentures were issued on July 2018 and micrest is payable (3) Assignment 2018-202 Page 6 7 of 7 Accounting for Management ( MCC5212) half-yearly in arrears on 1 January and 1 July each year. The first interest payment for the period from 1 July 2018 to 31 December 2018 was paid and recorded on 1 January 2019. (4) Income tax expenses of S43,300 is to be provided for. (5) The board of directors resolved to transfer S100,000 out of profit to general reserve on 31 March 2019. (6) Administrative expenses include an insurance of $2,400 paid for the year from 1 October 2018 to 30 September 2019. (7) Depreciation is to be provided for non-current assets as follows: - Fixtures and fittings 15% per annum using the straight line method - Motor vans 25% per annum using reducing balance method (8) Allowance for doubtful debts at 31 March 2019 was estimated to be $20,000. (9) The director propose a final dividend of $10,000 Required: Prepare for ABC Trading Limited, (a) a statement of comprehensive income for the year ended 31 March 2019, (15 marks) (b) a statement of financial position as at 31 March 2019. (15 marks) --- End of Assignment