The following trial balance was extracted from the books of Gilber Ltd, a manufacturing and trading company, on 31 December 2020 (all the figures are in sh 000).

Ordinary Share Capital of sh 10 each 10% preference share capital sh 25 each Opening stock of raw materials

Opening stock of work in progress Carriage inward of raw materials Share premiums

Purchases of raw material

Sales

Retained profit balance at 1st Jan 2020 Return inward

Factory building

Plant and machinery

Office furniture and equipment Delivery van

Bad debts written off

Direct wages (factory) Administrative expenses

Opening stock of finished goods Factory overheads

Accounts receivables and payable Cash in hand and at bank

10% Corporate Bonds

Rent income

Selling and distribution expenses Director allowances

Allowances for bad debts

Discount received

Factory power and lighting

Interest paid on corporate bonds

Additional information:

Sh 000

1,778 1,360 394

Sh 000 13,000 12,000

1,296 27,094

42,976 1,172

144 10,000 7,500 4,500 2,000 162 6,785 1,992 9,876 191 12,000 276

7,322

7,200

2,800 710

872

480

242 494

360 88488

88488

a) Outstanding expenses: Direct factory wages Kshs. 115,000; office administrative expenses Kshs. 29,000

b) Prepaidexpenses:sellingexpensesKshs.39,000;factorypowerandlightingKshs.31,000. c) Interest on 10% outstanding should be accrued.

d) RentincomeamountingtoKsh48,000havenotbeenreceived.

e) Plant and machinery and delivery van should be depreciated by 20% and furniture and equipment and factory building by 10%.

f) The factory building floor area used for office administrative is 35%

g) Adjustallowancesforbaddebtsto5%ofdebtors.

h) ClosingstockfinishedgoodsisvaluedatKshs.14,566,000,rawmaterialsisKsh2,380,000

and work in progress is Ksh 1,350,000

i) Goods are transferred from the factory to trading department at cost.

j) Corporate tax expensed is estimated at Ksh 2.6 million

k) Directorsareproposingdividendstopreferenceshareholdersandordinaryshareholdersat Ksh 1.5 per shares.

Required:

a) Manufacturing account

b) Statement of profit and loss for the year ended 31st Dec 2020

c) Statement of changes in equity.

d) Statement of Financial Position

e) The following categories of ratio

f) Profitability ratios

g) Liquidity ratio

h) Efficiency ratio

i) Gearing ratio

j) Shareholders ratio (market price per ordinary shares is Ksh 18)

Introduction to Accounting 2 Assignment 2 The following trial balance was extracted from the books of Gilber Ltd, a manufacturing and trading company, on 31 December 2020 (all the figures are in sh"000) Sh 000 Sh 000 Ordinary Share Capital of sh 10 each 13,000 10% preference share capital sh 25 each 12,000 Opening stock of raw materials 1.778 Opening stock of work in progress 1,360 Carriage inward of raw materials 394 Share premiums 1,296 Purchases of raw material 27,094 Sales 42.976 Retained profit balance at 1- Jan 2020 1.172 Return inward 144 Factory building 10,000 Plant and machinery 7,500 Office furniture and equipment 4,500 Delivery van 2.000 Bad debts written off 162 Direct wages (factory) 6,785 Administrative expenses 1,992 Opening stock of finished goods 9,876 Factory overheads 191 Accounts receivables and payable 12.000 7322 Cash in hand and at bank 276 10% Corporate Bonds 7,200 Rent income 2,800 Selling and distribution expenses 710 Director allowances 872 Allowances for bad debts 480 Discount received 242 Factory power and lighting 494 Interest paid on corporate bonds 360 88488 88188 Additional information: a) Outstanding expenses: Direct factory wages Kshs. 115,000, office administrative expenses Kshs. 29,000 b) Prepaid expenses selling expenses Kshs. 39,000, factory power and lighting Kshs31,000 c) Interest on 10% outstanding should be accrued. d) Rent income amounting to Ksh 48,000 have not been received e) Plant and machinery and delivery van should be depreciated by 20% and furniture and equipment and factory building by 10%. ) The factory building floor area used for office administrative is 35% g) Adjust allowances for bad debts to 5% of debtors. h) Closing stock finished goods is valued at Kshs. 14,566,000, raw materials is Ksh 2,380,000 and work in progress is Ksh 1,350,000 i) Goods are transferred from the factory to trading department at cost. D Corporate tax expensed is estimated at Ksh 2.6 million k) Directors are proposing dividends to preference shareholders and ordinary shareholders at Ksh 15 per shares Required: a) Manufacturing account b) Statement of profit and loss for the year ended 31Dec 2020 c) Statement of changes in equity. d) Statement of Financial Position The following categories of ratio f) Profitability ratios 8) Liquidity ratio h) Efficiency ratio i) Gearing ratio 1) Shareholders ratio (market price per ordinary shares is Ksh 18)