QUESTION FIVE The following information was obtained from the accounting records of First Ltd: Summarised financial position for year ended 31 December 2019 2018 ASSETS R R Land and buildings 104 865 95 470 Investments Nil 1 100 Machinery at carrying amount 6 500 1 600 Cost 8 700 5 400 Accumulated depreciation (2 200) (3 800) Inventories 12 000 9 000 Trade debtors 10 205 30 700 Cash at bank 13 500 Nil TOTAL ASSETS 147 070 137 870 EQUITY & LIABILITIES Equity 100 070 78 470 Ordinary share capital 85 000 68 000 Retained earnings 15 070 10 470 Liabilities 47 000 59 400 Long term loan 20 000 30 000 Bank overdraft Nil 700 Trade creditors 6 600 9 200 Income tax payable 2 000 4 100 Dividends payable 18 400 15 400