Question
The following transactions took place during the year ended 30th June 1999: (a) Half-years debenture interest to 31st December 1998, was paid on that date.
The following transactions took place during the year ended 30th June 1999:
(a) Half-years debenture interest to 31st December 1998, was paid on that date.
(b) Investments costing shs. 48,750,000 were sold, and realised 50,250,000 on 1st January 1999, in order to provide funds for purchase of debentures. On the same date, shs. 50 million debentures were purchased at shs 4,900 (inclusive of expenses) on the market, and cancelled.
(c) The remaining investments of the reserve fund were sold, and the proceeds amounting to shs. 551 million were received on 29th June 1999.
(d) Interest income amounting to 34,750,000 received in the year from the debenture redemption investments was not invested in view of the impending debenture redemption.
(e) On 30th June 1999, the debentures were repaid together with the half-years interest thereon.
Required to write up the following ledger accounts for the year ended 30th June 1999.
(i) 6% debentures
(ii) Debenture Redemption Reserve
(iii) Debenture Redemption Investment Question three
a) Explain the term ratio analysis
b) Explain any five types of ratios, giving two examples under each
c) GABA lake view limited presents to you the following financial statements for interpretation.
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