Reference no: EM132582173
The following balances remained in the book of Ahadi Limited as at 30th April 2016 after the preparation of trading account:
Shs.
Share Capital authorized and issued. 2,400,00 ordinary share @ sh. 20 48,000
800,000 8% preference shares @ sh.20 16,000
Stock - 30th April 2011. 33,540
Accounts receivable and prepayments. 10,880
Accounts payable and accruals. 5,488,800
Balance at bank. 3,118,400
10% debentures 6,400,000
General reserve 11,200,000
Bad debts 136,000
Gross profit for the year. 32,603,200
Salaries and wages 11,280,000
Rates and insurance 564,000
Postage and telephone 248,000
Water and electricity 486,400
Debenture interest 320,000
Directors fees 1,000,000
General expenses 1,243,200
Motor vehicles (cost shs. 11,640,000)) 2,720,000
Office fittings and equipment (Cost shs. 17,856,000) 10,976,000
Land and buildings at cost. 52,880,000
Profit and loss account - 1.05.2015 9,700,800
Additional Information
- A bill for shs. 219,200 in respect of electricity for the period up to 30.04.2016 has not been accrued.
- The amount for insurance includes a premium of shs. 120,000 paid in January 2016 to cover the company for six months, February to July 2016. - Office fittings and equipment are to be depreciated at 15% per annum on cost and motor vehicles at 2% per annum on cost
- Provision to be made:
- Directors fee - shs. 2,000,000 A
- udit fee - shs.480,000
- Outstanding debenture interest - shs. 320,000
- The directors have recommended that a sum of sh. 4,800,000be transferred to general reserve. The preference dividend be paid. 10% ordinary dividends be paid.
Required:
Question a) Profit and loss appropriation account for the year ended 30-04-2016.
Question b) Statement of financial position at 30-04-2016.