QUESTION THREE Baumi Ltd. is in the motor vehicle combling industry. A trial balance extret from the books at 30 September 2020 was as follows: Sh 1,400,000 350.000 840,000 730,835 112.000 234.990 924.315 875.000 407,645 910,000 434,000 371.000 213.500 271.935 82.530 Authorized and und share capital 140.000 ordinary shares of sh.10 each Share premium General reserve Retained profits Interim dividend paid Cash at bank and in hand Accounts receivable and payable Land and buildings, at cost (land sh. 525.000) Plant, al cost Plant- accumulated depreciation Motor vehicle, at cost Motor vehicle secumulated depreciation Fixtures and fittings, al cost Fixtures and fittings- accumulated depreciation Imunforte, 1 October 2019 Raw maternals Work in progress Pinished goods Provision for doubtful debts Bad debts Rals and insurance Direct wases Factory power Electricaty and water Plant maintenance Slanes Rerum inwards and outsands 28365 403 315 38.415 137.920 7670 630000 94415 Advertising Transport expenses Bank charges General expenses Purchases and Sales 15% debenhires Discount received 60.060 161,313 20,415 204.415 6,421,660 8.572,373 700,000 17,255 13,818,665 13.818,665 Additional information: 1) Provision for bad and doubtful debts is to be adjusted to a figure equal to 10% of accounts receivable. Depreciation is to be provided for the year using the reducing balance method and applying rates of 15% on plant, 25% on motor vehicles and 10% on fixtures and fittings Building is to be depreciated at the rate of 4% using the straight-line method. iv) Electricity and water, rates and insurance and general expenses are to be apportioned in the ratio 4:1 between factory and administrative overheads. ) At 30 September 2020 3.390 1.680 5.230 Electricity and water accrued Insurance prepaid Rates prepaid Inaries Raw materias Work in progress Finished goods 974.783 577.150 861,945 Debeure interest has not yet been paid The directors wish to provide for a final dividend which will bring the dividend for the year up to sh. 2 per share viii) Provide corporation at 30% Raired: i) Prepare the manufacturing account and income statement for the year ended 30 September 2020 (12 Marks) Statement of changes in equity for the year ended 30 September 2020 (2 Marks) Statement of Financial Position as at 10 September 2020 ( Marks QUESTION THREE Baumi Ltd. is in the motor vehicle combling industry. A trial balance extret from the books at 30 September 2020 was as follows: Sh 1,400,000 350.000 840,000 730,835 112.000 234.990 924.315 875.000 407,645 910,000 434,000 371.000 213.500 271.935 82.530 Authorized and und share capital 140.000 ordinary shares of sh.10 each Share premium General reserve Retained profits Interim dividend paid Cash at bank and in hand Accounts receivable and payable Land and buildings, at cost (land sh. 525.000) Plant, al cost Plant- accumulated depreciation Motor vehicle, at cost Motor vehicle secumulated depreciation Fixtures and fittings, al cost Fixtures and fittings- accumulated depreciation Imunforte, 1 October 2019 Raw maternals Work in progress Pinished goods Provision for doubtful debts Bad debts Rals and insurance Direct wases Factory power Electricaty and water Plant maintenance Slanes Rerum inwards and outsands 28365 403 315 38.415 137.920 7670 630000 94415 Advertising Transport expenses Bank charges General expenses Purchases and Sales 15% debenhires Discount received 60.060 161,313 20,415 204.415 6,421,660 8.572,373 700,000 17,255 13,818,665 13.818,665 Additional information: 1) Provision for bad and doubtful debts is to be adjusted to a figure equal to 10% of accounts receivable. Depreciation is to be provided for the year using the reducing balance method and applying rates of 15% on plant, 25% on motor vehicles and 10% on fixtures and fittings Building is to be depreciated at the rate of 4% using the straight-line method. iv) Electricity and water, rates and insurance and general expenses are to be apportioned in the ratio 4:1 between factory and administrative overheads. ) At 30 September 2020 3.390 1.680 5.230 Electricity and water accrued Insurance prepaid Rates prepaid Inaries Raw materias Work in progress Finished goods 974.783 577.150 861,945 Debeure interest has not yet been paid The directors wish to provide for a final dividend which will bring the dividend for the year up to sh. 2 per share viii) Provide corporation at 30% Raired: i) Prepare the manufacturing account and income statement for the year ended 30 September 2020 (12 Marks) Statement of changes in equity for the year ended 30 September 2020 (2 Marks) Statement of Financial Position as at 10 September 2020 ( Marks