Question two

MAH Plc pays tax at 35% on any profits earned.

Some figures extracted from the ledger of MAH Plc as on 30th June 2020 were as follows:

Net sales K916,600

Cost of goods sold 653,119

Other income 296,500

Other expenses 315,061

You have reviewed documents concerning the year to 30thJune 2020 and discovered the following:

Non-current assets as at that date were at Net Book Value K603,817

Current assts K141,783

Ordinary share capital K200,000

Revenue reserves excluding the retained profit for the year K235,206.

MAH Plc already paid provisional income tax for 2020 worth K60,000. The Board of directors did not declare any dividends for the year ending June 30,2020. Other current liabilities excluding tax payable are K38,752.

Required

Prepare the following:

1. The statement of income for the year ending 30^th June 2020.

(13 marks)

2. The statement of financial position as at 30^th June 2020

(12 marks)

(Total 25 marks)