Question
The following balances have been extracted from the books of UKusefwa Pangwenaco. Ltd as at 30thSeptember 2015: K'000 Sales240 000 Land at cost103 200 Buildings
The following balances have been extracted from the books of UKusefwa Pangwenaco. Ltd as at 30thSeptember 2015:
K'000
Sales240 000
Land at cost103 200
Buildings at cost114 000
Furniture and fittings at cost66 000
Depreciation: Buildings18 000
Furniture and fittings30 000
Bank (credit balance)18 000
Discount received5 292
Unappropriated profit at 1stOctober 20146 000
Provision for doubtful debts2 448
Cash in hand696
Stock at 1stOctober 201442 744
Interim dividend on preference shares1 800
Rates6 372
Salaries and wages24 000
Insurance5 668
Returns inwards1 116
General expenses1 308
Debtors37 920
Creditors18 900
Purchases131 568
Debenture interest1 200
Bad debts2 028
5% debentures48 000
6% K1 000 preference shares60 000
K1 000 ordinary shares60 000
General reserve30 000
Share premium3 000
Additional information:
1.Stock on hand at 30thSeptember 2015 was K46 638 000.
2.Insurance paid in advance K300 000.
3.Wages owing K840 000.
4.Depreciation is to be provided at 10% on cost of buildings, and at 20% on the written down value of furniture and fittings.
5.Provision for doubtful debts is to be reduced to 5% of debtors.
6.Debenture interest outstanding is K1 200 000.
7.The directors propose to pay a 5% ordinary dividend and the final preference dividend, and to transfer K24 000 000 to general reserve.
8.The corporation tax charge for the year is K20 000 000.
You are requiredto prepareTrial balance andincome statement and Balance Sheet
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