Prepare the statement of comprehensive income for luke

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Reference no: EM132634699

Luke plc, a wholesaling company, employs just over 250 people and purchases food in bulk for sale to small shops and hotels. The company buys from a large number of suppliers of various sizes, spread across the country.

The company's trial balance at 31 March 2012 is as follows:

Administrative costs k190 000
Bank k111 000
Income tax k160 000
Deferred tax k130 000
Distribution costs k16 000
Dividends received (net) k570 000
Non- current assets k6675 000
investment Interim dividend k600 000
Loan notes (repayable) 2015 k300 000
Loan notes interest k124 000
Plant and Machinery - cost k1000 000
Plant and Machinery - Accumulated depreciation k540 00
Premises - cost k2500 000
Premises - Accumulated depreciation k820 000 Accumulated profits k321 000
Purchases k2127 000
Sales revenue k5100 000
Ordinary share capital (K1) k7100 000
Inventory at 1 April 2011 k265 000
Trade payables k668 000
Trade receivables k517 000
Wages - administration k900 000
Wages - distribution k500 000

Notes:

1. Inventory was physically counted at close of business on 31 March 2012 and was valued at K267, 000.

2. The investment had a fair value of K5, 500,000 as at 31March 2012. There were no acquisitions or disposals of these investments during the year ended 31 March 2012.

3. Premises are to be depreciated by 2 per cent of cost and plant and machinery by 20 per cent on the reducing balance method. All depreciation is to be treated as a distribution cost.

4. The Directors have proposed a final dividend of K500, 000.

5. A bonus issue of one for every twenty shares held for K1 was issued to the shareholders during the financial year. This transaction has not yet being recorded in the books of accounts

6. The directors have estimated the provision for income tax for the year ended 31 March 2012 at K200, 000. The required deferred tax provision at 31 March 2012 is K140, 000; all adjustments to deferred tax should be taken to the income statement. The balance of current tax in the trial balance represents the under/over provision of the income tax liability for the year ended 31 March 2011

Required:

Question a) Prepare the statement of comprehensive income for Luke for the year ended 31 March 2012

Question b) Prepare the statement of changes in equity for Luke for the year ended 31 March 2012

Question c) Prepare a statement of financial position for the year ended 31 March 2012.

Question d) List five components of the financial statements

Reference no: EM132634699

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