QUESTION ONE. 30 MARKS) Having gone through the principles Il class, imagine you are an intern at Flore agro florists and its end year. The Warehouse Manager is overwhelmed with work and realize that you can just be the perfect penton to lielp him with inventory related inues after he malizes glitch in some year's records. The information for the years in question has been provided as follows: 2018 2019 2020 Current Asset Non-Current Assets Tool Assets Long term Liabilities Revenue Cost of Sales 1,000 1.250 1.750 5.000 6,250 8,750 6,000 7,500 10,500 2.000 2,500 3,500 1,000 1.250 1,750 40% on cost for all the Years Assume that ending Inventory was overstated by KI, 500 in 2018 and Understated by K 10.000 ends of 2019 Required Calculate the cost of goods sold for the years 2018, 2019 and 2020 (6 Maris) b. Calculate the Owners Equity value for the year 2018, 2019 and 2020 (3 Marks) Calculate the correct values for the below listed items in 2018 and 2019 indicating the effect with an explanation (21 Marks) Current Assets Non-current Assets Total Assets 11 Long term Liabilities Owners Equity Revenue Cost of sales Gross Profit VII QUESTION TWO (30 MARKS) The Capital balances of Partners Eliza and Sara are 120.600 and 14, 400 respectively before Ruth and Tatty are admitted to the Partnership. At admission Ruth purchased One third of Elma's interest for k8, 00D and one third of Sara's interest for 4, 2002 Tatty was admitted to the QUESTION ONE. 30 MARKS) Having gone through the principles Il class, imagine you are an intern at Flore agro florists and its end year. The Warehouse Manager is overwhelmed with work and realize that you can just be the perfect penton to lielp him with inventory related inues after he malizes glitch in some year's records. The information for the years in question has been provided as follows: 2018 2019 2020 Current Asset Non-Current Assets Tool Assets Long term Liabilities Revenue Cost of Sales 1,000 1.250 1.750 5.000 6,250 8,750 6,000 7,500 10,500 2.000 2,500 3,500 1,000 1.250 1,750 40% on cost for all the Years Assume that ending Inventory was overstated by KI, 500 in 2018 and Understated by K 10.000 ends of 2019 Required Calculate the cost of goods sold for the years 2018, 2019 and 2020 (6 Maris) b. Calculate the Owners Equity value for the year 2018, 2019 and 2020 (3 Marks) Calculate the correct values for the below listed items in 2018 and 2019 indicating the effect with an explanation (21 Marks) Current Assets Non-current Assets Total Assets 11 Long term Liabilities Owners Equity Revenue Cost of sales Gross Profit VII QUESTION TWO (30 MARKS) The Capital balances of Partners Eliza and Sara are 120.600 and 14, 400 respectively before Ruth and Tatty are admitted to the Partnership. At admission Ruth purchased One third of Elma's interest for k8, 00D and one third of Sara's interest for 4, 2002 Tatty was admitted to the
