Reference no: EM132743508
Question - Masaba Company Ltd. is a retail provider with an authorised share capital of 800,000 Sh.20 ordinary shares and 250,000 8% Sh.20 redeemable preference shares. The following financial information reflects the position of the company as at 31 December 2018 after preparing the Trading, profit and loss account: Sh. '000' Provision for depreciation Fittings 1,500, Motor vehicles 3,740 Goodwill 1,200 Issued share capital: 600,000 Sh.20 Ordinary shares 12,000 250,000 Sh.20 Redeemable preference shares 5,000 Share premium account 400 Trade debtors and prepayments 1,708 Land and buildings at valuation (Cost Sh.4, 400,000) 18,400 Capital redemption reserve fund 3,000 Fittings at cost 3,000 Motor vehicles at cost 7,940 10'% Debentures 1,600 Trade creditors and accruals 960 Short-term investments (Market value Sh.860,000) 7 8 0 Stock at 31 December 2018 2,960 Bank overdraft 540 Revaluation reserve 1,000 Net profit for the year 1,440 Retained profit at 1 January 2018 4,460 General Reserve 1,100 Provision for doubtful debts 48 Interim dividend paid - Ordinary 600 - Preference 200 The following resolutions relating to year ended 31 December 2018 have been passed by the board of directors of the company 1. Transfer Sh.500,000 to General Reserve. 2. Provide for 5% final dividend and final preference dividend on shares issued and outstanding on 31 December 2018. 3. Make a bonus issue of 100,000 fully paid ordinary shares from the retained profits account.
Required -
(i) Make the appropriations account of Masaba Company Ltd. for the year ended 31 December 2018.
(ii) Make the satement of financial position of Masaba Company Ltd. as at 31 December 2018.