Question
The following trial balance has been extracted from the books of Bwawani Ltd as at 30 September 2018. Tshs '000 Tshs '000 Administrative expenses 500
The following trial balance has been extracted from the books of Bwawani Ltd as at 30 September 2018. Tshs '000 Tshs '000 Administrative expenses 500 Share capital (Ordinary shares of Tshs. 1,000 each) 3,500 Cash at bank and in hand 75 Tax (overpayment for the year to 30/9/2016 25 Distribution costs 750 Dividends received (on 31/3/2018) 311
Freehold property: at cost 3,375 Freehold property: Accumulated depreciation (at 1/10/2017) 325 Interim dividend (paid on 30/6/2018) 45 Investments 2,500 Plant and machinery: at cost 6,500 Plant and machinery: Accumulated depreciation (at 1/10/2017) 4,500 Retained earnings at 1/10/2017 3,428 Purchases 20,000 Research expenditure 94 Inventory (at 1/10/2017) 2,875 Trade Payables 3,625 Trade receivables 3,375 Sales revenue 24,375 40,089 40,089 Additional information (i) The inventory at 30 September 2018 was valued at Tshs4,500 million (ii) Depreciation for the year to 30 September 2018 is to be charged on the historic cost of the non-current assets as follows: Plant and machinery: 15 per cent Freehold property: 5 per cent (iii) On 30 September 2018, the directors proposed a final dividend of Tshs750 per share (iv) The company was incorporated in 2011 (v) Tax based on the profits for the year at a rate of 35 per cent is estimated to be Tshs1,062.5 million
REQUIRED: Prepare the following financial statement of Bwawani for the year ended 30 September 2018 in accordance with IAS 1 `Presentation of Financial Statements`. (a) Statement of profit or loss and other comprehensive income (b) Statement of changes in equity (c) Statement of financial position Note: Round all figures to the nearest thousand Tshs
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