The following trial balance was extracted from the ledger of Obichi Ltd as at 31 st March 2016.

DR CR N`000 N`000 10% Pref. Share Capital 10,000 Ordinary Share Capital 20,000 Share premium 6,000 9% Debenture 12,000 General reserve 9,280 Profit or Loss account 1st April, 2015 3,060 Plant & Machinery at cost 44,000 Motor Vehicle at cost 13,000 Accumulated Depreciation Plant & Machinery 4,800 Accumulated Depreciation M/V 3,600 Furniture & Fittings 4,800 Accumulated Depreciation (Furniture & Fittings) 1,120 Inventory (1st April 2015) 5,360 Account Receivables 54,068 Account payables 36,420 Cash in hand 13,240 Revenue 149,760 Purchases 92,320 Carriage Inward 3,240 Preference dividend 1,000 Directors Remunerations 3,000 Salaries & Wages 11,320 Rent & Rates 4,320 Insurance 1,740 Office Expenses 4,176 Bad Debt 212 Electricity 344 Interest Income 100 256,140 256,140

3 The following additional information is provided: i. Provision is to be made for depreciation on the non-current assets at the following rates. Plant & Machinery 15% Motor Vehicle 20% Furniture & Fittings 10% ii. The following payments were made in advance in respect of: Rent N1,120,000 Insurance N292,000 iii. Provision to be made on doubtful debts is N1,120,000 iv. Provision to be made for audit fees of N2,400,000 v. Closing inventories 31/3/2016 N9,720,000 vi. Current year income tax charge N6,420,000 vii. The Directors have proposed a dividend of N4,000,000 for the ordinary shareholders viii. Authorised Share Capital are as follows: 10,000,000 10% pref. Shares at N1 each 30,000,000 ordinary shares at N1 each Required: a) The statement of profit or loss for the year ended 31 st March 2016 (7 marks) b) The statement of financial position as at 31 st March 2016

The following trial balance was extracted from the ledger of Obichi Ltd as at 31 st March 2016.

DR CR N`000 N`000 10% Pref. Share Capital 10,000 Ordinary Share Capital 20,000 Share premium 6,000 9% Debenture 12,000 General reserve 9,280 Profit or Loss account 1st April, 2015 3,060 Plant & Machinery at cost 44,000 Motor Vehicle at cost 13,000 Accumulated Depreciation Plant & Machinery 4,800 Accumulated Depreciation M/V 3,600 Furniture & Fittings 4,800 Accumulated Depreciation (Furniture & Fittings) 1,120 Inventory (1st April 2015) 5,360 Account Receivables 54,068 Account payables 36,420 Cash in hand 13,240 Revenue 149,760 Purchases 92,320 Carriage Inward 3,240 Preference dividend 1,000 Directors Remunerations 3,000 Salaries & Wages 11,320 Rent & Rates 4,320 Insurance 1,740 Office Expenses 4,176 Bad Debt 212 Electricity 344 Interest Income 100 256,140 256,140

3 The following additional information is provided: i. Provision is to be made for depreciation on the non-current assets at the following rates. Plant & Machinery 15% Motor Vehicle 20% Furniture & Fittings 10% ii. The following payments were made in advance in respect of: Rent N1,120,000 Insurance N292,000 iii. Provision to be made on doubtful debts is N1,120,000 iv. Provision to be made for audit fees of N2,400,000 v. Closing inventories 31/3/2016 N9,720,000 vi. Current year income tax charge N6,420,000 vii. The Directors have proposed a dividend of N4,000,000 for the ordinary shareholders viii. Authorised Share Capital are as follows: 10,000,000 10% pref. Shares at N1 each 30,000,000 ordinary shares at N1 each Required: a) The statement of profit or loss for the year ended 31 st March 2016 (7 marks) b) The statement of financial position as at 31 st March 2016