Question
The following are extracts from the financial statements of Wewe Ltd. As at 31 March: 2018 2017 Sh.'000' Sh.'000' Sh.'000' Sh.'000' J 10,050 6,140 1,710
The following are extracts from the financial statements of Wewe Ltd. As at 31 March:
2018
2017
Sh.'000'
Sh.'000'
Sh.'000'
Sh.'000'
J
10,050
6,140
1,710
200
18,100
(2,390)
(5,850)
(450)
(820)
(9,510)
2,800
16,800
5,860
3,600
29,060
8,590
37,650
(7,500)
30,150
18,000
1,500
4,500
6,150
8,700
7,800
840
430
17,770
(6,540)
(5,250)
(380)
(600)
(12,770)
2,900
12,000
6,350
3,750
25,000
5,000
30,000
(9,000)
21,000
15,000
750
-
5,250
30,150
21,000
The profit and loss appropriation account for the year ended 31 March 2018 is given below:
Sh.'000'
Sh.'000'
Net profit before tax
Less: Corporation tax
Profit after tax
Dividends:
Interim (paid)
Proposed (paid)
150
450
2,400
900
1,500
600
900
The following additional information is provided:
1.Profit for the year is arrived at after charging:
Sh.'000'
Depreciation on plant and machinery
Goodwill amortisation
1,150
420
2.During the year, plant with a net book value of Sh.750,000 was sold forSh.1,470,000.The plant had originally cost Sh.3,000,000.
3.The investments portfolio was reduced by selling one block of shares at a profit
of sh.160,000.
Required:
Cash flow statement in accordance with IAS 7.(18 marks)
QUESTION TWO
Masaba Company Ltd. is a retail provider with an authorised share capital of
800,000 Sh.20 ordinary shares and 250,000 8% Sh.20 redeemable preference shares.
The following financial information reflects the position of the company as at 31 December 2018 after preparing the Trading, profit and loss account:
Sh.
`000'
Provision for depreciationFittings
1,500,
Motor vehicles
3,740
Goodwill
1,200
Issued share capital: 600,000 Sh.20 Ordinary shares
12,000
250,000 Sh.20 Redeemable preference shares
5,000
Share premium account
400
Trade debtors and prepayments
1,708
Land and buildings at valuation (Cost Sh.4, 400,000)
18,400
Capital redemption reserve fund
3,000
Fittings at cost
3,000
Motor vehicles at cost
7,940
10`% Debentures
1,600
Trade creditors and accruals
960
Short-term investments (Market value Sh.860,000)
7 8 0
Stock at 31 December 2018
2,960
Bank overdraft
540
Revaluation reserve
1,000
Net profit for the year
1,440
Retained profit at 1 January 2018
4,460
General Reserve
1,100
Provision for doubtful debts
48
Interim dividend paid - Ordinary
600
- Preference
200
The following resolutions relating to year ended 31 December 2018 have been passed by the board of directors of the company
1.Transfer Sh.500,000 to General Reserve.
2.Provide for 5% final dividend and final preference dividend on shares issued and
outstanding on 31 December 2018.
3.Make a bonus issue of 100,000 fully paid ordinary shares from the retained profits
account.
Required:
(i)The appropriations account of Masaba Company Ltd. for the year ended 31 December 2018. (4 marks)
(ii)Statement of financial position of Masaba Company Ltd. as at 31 December 2018.(8 marks)
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