Question

The following trial balance was extracted from the books of SOS。(PVT) on 16th June, 2018. ZMW Capital Returns outwards-raw materials Sales Returns outwards Vehicles Rent receivable Trade payables Issued share capital- ordinary shares Issued share capital-preference shares Share premium Opening stock of raw material Opening stock of work in progress Purchases-raw materials Dividend paid Direct expenses Retained earnings at 1/6/18 Inventory 13,500 250 22,050, 413 475 200 638 4,125 725 450 780 660 150 1,970 240 975 825 Purchases 6,263 350 13 79 25 17 978 125 800 738 12,500 1,562 1,125 290 370 750 286 2,108 375 3,875 1,255 889 1,271 3,990 1,750 1,866 20,567 3,897 900 780 1,005 850 1,280 Returns inwards Carriage inwards Carriage inwards-raw materials Rentfactory Fuel Opening stocks-finished goods Carriage outwards Salesmen's salaries Wages and salaries Land Plant Motor vehicles Distribution costs Interest paid Taxation Administrative expenses Corporate tax paid Directors' remuneration Trade receivables Purchase of treasury bills Receipt from sale of fixed assets Repurchase of debenture loan Cash at bank and in hand Closing stock Goodwill Buildings Mortgage loan Drawings Premium Sundries Commissions Paid Commissions Received Note of information not taken into the trial balance data: (a) Provide for: @An audit fee of K68. (ii) Income tax of K562. Gii) Administrative expenses were prepaid by K72. Giv) Prepaid premiums of K270 (v) Prepayment of premiums of K378 (vi) Discount received of K516 (vi) Commision paid of K183 Required: Prepare:a) Profit and loss account (20 Marks) b) Balance sheet (20 Marks) c) Manufacturing account (20 marks) d) Cash Flow statement (20 Marks)

Answer 1

Since there are multiple questions involved within the same question, I am answering the first 2, you should submit these questions separately.

Debit Profit and Loss Account Credit Opening Stock of Raw Material Opening Stock of WIP Opening stocks Finished goods Purchases Raw Materials Purchases Direct Expenses Return Inwards Carriage Inwards Carriage Inwards Raw Material Rent Factory Fuel Carriage Outwards Salesman's Salary Wages and Salaries Distribution costs Interest Paid Taxation Admin Expenses Corporate Tax Paid Director's remuneration 780 Sales 660 Return Outwards Raw Material 978 Return Outwards 150 Dividend Paid 22,050 250 413 1,970 1,280 1,750 516 6,263 Commission Received 240 Closing stock 350 Discount Received 13 79 25 125 800 738 290 370 750 286 2,108 375

Interest Paid Taxatiorn Admin Expenses Corporate Tax Paid Director's remuneration Premiums Sundries Commission Paid Audit Fee Income Tax Admin Expenses Premiums Commission Paid 370 750 286 2,108 375 780 1,005 850 68 562 72 648 183 Profit transferred to Balance Sheet 8,664 28,229 28,229

Assets Balance Sheet Liabilities 25,626 638 4,125 725 450 975 8,664 1,255 3,897 Vehicles Rent receivable Inventory 475 Capital 200 Trade Payables 825 Issues Share Capital - Ordinary Shares Issues Share Capital - Preference Shares 12,500 Plant Motor Vehicles Trade receivables Goodwil Buildings Prepaid Admin Expense Prepaid Premiums Prepaid Commission Cash at bank and in hand 1,562 Share Premium 1,125 Retained Earnings at 1/6/18 3,875 Add: Balance from P&L account 1,866 Treasury Bills 20,567 Mortgage Loarn 72 648 183 2,457 46,355 46,355