Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are provided with the information for Mwape Mulenga and co. Ltd at 31 December 2018: Ordinary share capital (K500 shares) 5% preference share capital

image text in transcribed

You are provided with the information for Mwape Mulenga and co. Ltd at 31 December 2018: Ordinary share capital (K500 shares) 5% preference share capital K100 shares Freehold land and buildings at cost Provision for depreciation - buildings Debtors Creditors Cash at bank Stock at 14 January 2018 Sales Discounts allowed Discounts received Purchases Carriage inwards Carriage outwards 10% debentures Debenture interest paid Administrative expenses Salaries (excluding directors) Preference dividend paid Retained Earnings b/f 120 000 40 000 460 000 200 000 20 000 4000 10 000 20 000 160 000 800 400 98 000 2 000 1 600 100 000 10 000 8 000 8 000 2 000 16 000 Adjustments are required for 1. Inventory at 31 December 2018, at cost K30 000 2. Directors' salaries not yet paid K10 000 3. Corporation tax for the year K10 000 4. Proposed ordinary dividend K25 per share 5. Depreciation on buildings is charged at 2% per annum on cost 6. Accrued audit fee K2 000 7. Creation of a plant replacement reserve of K2 000 You are required to prepare a) A trial balance. b) Statement of Profit or Loss. c) Statement of Financial Position for the Company. (5 Marks) 12 Marks) (8 Marks) [Total:25 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

1st Edition

0471169196, 978-0471169192

More Books

Students also viewed these Accounting questions