Question
The following balances were extracted from the books of accounts of Bagman Plc as of the end of the financial year. Trial Balance as of
The following balances were extracted from the books of accounts of Bagman Plc as of the end of the financial year. Trial Balance as of 31 March 2018
DR CR
K MILLION K MILLION
Revenue 15000
Purchases 6081
Inventory-1/04/2017 495
Trade Payables 504
Trade Receivables 2451
Ordinary share capital( K 600 shares) 18000
15% Cumulative preference Shares (K 800 shares) 3000
Investment Property 19725
Land and Buildings-Cost 7200
Accumulated Depreciation 1/04/2017 2160
Fixtures and Fitting-cost 2700
Accumulated Depreciation 1/04/2017 1320
20% Loan notes( Redeemable 2022) 600
Retained earnings -31/03/2021 633
Differed tax provision 1200
Shared premium 30
General Administration expense 20
Delivery expenses 160
Office expenses 210
Sundry expenses 45
Directors’ Remuneration 15
Salaries and Wages 3600
20% Loan note paid 72
Cash and Cash equivalents 30
Short term investment 3
Income tax 60
Income from investment property 300
Dividend Received 1500
Interim dividend paid;
Preference 200
Ordinary 1300
TOTALS 44307 44307
ADDITIONAL INFORMATION
1. Inventory at the end of the financial year was valued at k 500million cost
2. Accrued expenses at 31 March 2018 were Office expenses-K15mllion and Salaries and wages- K40million
3. K12million and K5million were prepaid for delivery expenses and general Administrative expenses as of 31 March 2018.
4. Land and Building were revalued at K750million on 1/04/2017. The director decided to incorporate this valuation into account.
5. The balance of the income tax account represents the remaining amount after the settlement of the tax liability for the financial year ended 31 March 2017.
6. Deferred tax amount is to adjust to K35million, due to timing differences that occurred for the year ended 31 March 2018
7. The income tax charge for the year was estimated at K810 million
8. Depreciation is to be provided as follows; Land and Building-4% of cost or valuation and Fixture and Fittings -20% on reducing balance basis
9. Certain expenses are to be apportioned as follows
Expense item Cost of sales Distribution Administration
Salaries and Wages 25% 30% 45%
Deprecation –Land and Buildings 35% 20% 45%
Deprecation- Fixtures and Fittings 20% 30% 50%
10. The directors proposed a final dividend on preference share and a final ordinary dividend of K2 per share.
Required Prepare Bagman Plc
a) Statement of Profit or Loss for the year ended 31 March 2018
b) Statement of Changes in Equity for the year ended 31 March 2018
c) Statement of Financial Position as of 31 March 2018. In accordance with requirements of IFRS (for Publication as per IAS1)
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