Unit: Financial accounting
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Login to Access| Precious Ltd. Statement of profit or loss for the year ended 31 March 2024: |
| Sh.“000” | Sh.“000” | |
| Gross profit | 26,700 | |
| Operating expenses | (22,050) | |
| 4,650 | ||
| Other incomes: | ||
| Interest income received | 900 | |
| Gain on sale of investments | 1,800 | |
| Less: Loss on sale of plant | (450) | 2,250 |
| 6,900 | ||
| Interest expenses paid | 3,450 | |
| Net profit before tax | 3,450 | |
| Income tax | (1,050) | |
| Net profit after tax | 2,400 |
| Precious Ltd. Statement of financial position as at 31 March: |
| 2023 | 2024 | |
| Non-current assets: | Sh.“000” | Sh.“000” |
| Property, plant and equipment (cost) | 75,750 | 107,250 |
| Accumulated depreciation | (10,200) | (15,450) |
| 65,550 | 91,800 | |
| Investments | 19,050 | 17,250 |
| Current assets: | ||
| Inventory | 16,500 | 21,600 |
| Accounts receivable | 8,250 | 7,050 |
| Cash | 2,250 | 6,900 |
| Prepayments | 750 | 150 |
| Total current assets | 27,720 | 35,700 |
| Total assets | 112,350 | 144,750 |
| Liabilities and capital: | ||
| Ordinary share capital | 47,250 | 69,750 |
| Revenue reserves | 19,800 | 21,000 |
| 67,050 | 90,750 | |
| Long term liabilities: | ||
| Bonds | 36,750 | 44,250 |
| Current liabilities: | ||
| Accounts payable | 6,450 | 7,500 |
| Accrued liabilities | 1,350 | 1,800 |
| Tax payable | 750 | 450 |
| Current liabilities | 8,550 | 9,750 |
| Total liabilities and equity | 112,350 | 144,750 |
| Equity and Liabilities: | 2023 | 2022 |
| Equity | Sh.“000” | Sh.“000” |
| Ordinary share capital | 900,000 | 600,000 |
| Share premium | 210,000 | 90,000 |
| Revenue reserves | 246,000 | 84,000 |
| Total equity and reserves | 1,356,000 | 774,000 |
| Non-current liabilities: | ||
| Debentures | 180,000 | 300,000 |
| Bank loan | - | 120,000 |
| Total long term liabilities | 180,000 | 420,000 |
| Current liabilities: | ||
| Trade payables | 288,000 | 204,000 |
| Proposed dividends | 90,000 | 45,000 |
| Corporate tax | 198,000 | 129,000 |
| Bank overdraft | - | 84,000 |
| 576,000 | 462,000 | |
| Total equity and liabilities | 2,112,000 | 1,656,000 |
| Non-current assets: | ||
| Freehold land (Net book value) | 780,000 | 660,000 |
| Plant and machinery (Net book value) | 582,000 | 450,000 |
| Furniture and fittings (Net book value) | 84,000 | 66,000 |
| 1,446,000 | 1,176,000 | |
| Current assets: | ||
| Inventory | 306,000 | 222,000 |
| Trade receivables | 264,000 | 256,800 |
| Short term investments | 27,600 | - |
| Cash in hand | 68,400 | 1,200 |
| 666,000 | 480,000 | |
| Total assets | 2,112,000 | 1,656,000 |
| 1. | A machinery with a net book value of Sh.12,000,000 (original cost Sh.48,000,000) was sold for Sh.18,000,000. Furniture with a net book value of Sh.18,000,000 (original cost Sh.30,000,000) was sold for Sh.13,000,000. Profits and losses on these transactions had been reported in the statement of profit or loss. |
| 2. | Corporate tax for the year ended 31 December 2023 was Sh.80,000,000. |
| 3. | The proposed dividends for the year ended 31 December 2022, were paid during the year ended 31 December 2023. |
| 4. | There was no disposal or revaluation of freehold property in the year ended 31 December 2023. |
| 5. | Interest expense charged to the statement of profit or loss for the year ended 31 December 2023 was Sh.38,400,000. Accrued interest of Sh.26,400,000 is included in the trade payables as at 31 December 2023. |
| 6. | Depreciation charged to the statement of profit or loss for the year ended 31 December 2023 was as follows: |
| 6. | Sh. | |
| Furniture and fixtures | 34,000,000 | |
| Plant and machinery | 58,000,000 |
| 2022 | 2023 | |
| Sh.“million” | Sh.“million” | |
| Net Sales (80% credit sales) | 4,400 | 5,100 |
| Cost of sales | (2,200) | (2,850) |
| Gross profit | 2,200 | 2,250 |
| Operating expenses | (640) | (910) |
| Net profit before interest and taxes | 1,560 | 1,340 |
| Interest expense | (45) | (60) |
| Profit before tax | 1,515 | 1,280 |
| Corporate tax | (400) | (240) |
| Net profit after tax | 1,115 | 1,040 |
| Less: Dividends - Interim | (50) | (65) |
| - Final | (150) | (105) |
| Retained profit | 915 | 870 |
| 2022 | 2023 | |
| Sh.“million” | Sh.“million” | |
| Assets: | ||
| Non-current assets: | ||
| Propert, plant and equipment (NBV) | 1,400 | 1,800 |
| Current assets: | ||
| Inventory | 800 | 1,200 |
| Trade receivables | 490 | 600 |
| Cash in hand | 420 | 395 |
| 1,710 | 2,195 | |
| 3,110 | 3,995 | |
| Capital and liabilities: | ||
| Capital: | ||
| Ordinary share capital (Sh.10 par) | 1,000 | 1,000 |
| Revenue reserves | 915 | 1,785 |
| 1,915 | 2,785 | |
| Non-current liabilities: | ||
| 10% debentures | 450 | 600 |
| Current liabilities: | ||
| Tax payable | 400 | 240 |
| Trade payables | 145 | 200 |
| Proposed dividends | 200 | 170 |
| 745 | 610 | |
| Total capital and liabilities | 3,110 | 3,995 |
| Statement of profit or loss for the year ended 30 June 2023: | |
| Sh.“000” | |
| Revenue | 134,400 |
| Cost of sales | (105,000) |
| Gross profit | 29,400 |
| Investment income | 1,500 |
| Operating expenses | (14,000) |
| Finance cost | (2,500) |
| Profit before tax | 14,400 |
| Corporation tax | (5,400) |
| Profit after tax | 9,000 |
| Statement of financial position as at 30 June: | ||
| 2023 | 2022 | |
| Sh.“000” | Sh.“000” | |
| Assets: | ||
| Non-current assets: | ||
| Freehold land | 100,800 | 72,000 |
| Plant and machinery | 51,960 | 55,500 |
| Investments at cost | 21,600 | 22,500 |
| 174,360 | 150,000 | |
| Current assets: | ||
| Inventory | 40,300 | 32,200 |
| Accounts receivable | 36,840 | 46,800 |
| Short-term investments | 10,260 | 5,040 |
| Cash in hand | 1,200 | 2,580 |
| 88,600 | 86,620 | |
| Total assets | 262,960 | 236,620 |
| Equity and liabilities: | ||
| Equity: | ||
| Ordinary share capital | 108,000 | 90,000 |
| Share premium | 9,000 | 4,500 |
| Revaluation reserve | 27,000 | - |
| Retained earnings | 36,900 | 31,500 |
| 180,900 | 126,000 | |
| Non-current liabilities: | ||
| 10% loan | 25,000 | 34,000 |
| Current liabilities: | ||
| Accounts payable | 35,100 | 31,500 |
| Bank overdraft | 14,340 | 39,240 |
| Proposed dividends | 2,700 | 2,280 |
| Taxation | 4,920 | 3,600 |
| 57,060 | 76,620 | |
| Total equity and liabilities | 262,960 | 236,620 |
| 1. | The revaluation reserve relates to freehold land. |
| 2. | Depreciation on plant and machinery amounting to Sh.6,900,000 was charged to the statement of profit or loss for the year. |
| 3. | Part of the long-term investments were sold during the year at a profit of Sh.960,000. |
| 4. | During the year, plant with a net book value of Sh.4,500,000 was sold for Sh.8,820,000. The plant had an original cost of Sh.18,000,000. |
| 5. | The following is an extract from the statement of changes in equity for the year ended 30 June 2023 (Retained earnings column only): |
| 5. | Sh.“000” | |
| Balance as at 1 July 2022 | 31,500 | |
| Profit after tax for the year | 9,000 | |
| Interim ordinary dividend paid during the year | (900) | |
| Final ordinary dividend proposed | (2,700) | |
| Balance as at 30 June 2023 | 36,900 |
| 2022 | 2021 | |
| Sh. “000” | Sh. “000” | |
| Assets: | ||
| Non-current assets: | ||
| Land and buildings | 540,000 | 240,000 |
| Motor vehicles | 120,000 | 144,000 |
| Furniture and fittings | 96,000 | 168,000 |
| 756,000 | 552,000 | |
| Current assets: | ||
| Inventory | 96,000 | 84,000 |
| Accounts receivable | 144,000 | 108,000 |
| Cash and bank | 24,000 | 36,000 |
| 264,000 | 228,000 | |
| Total assets | 1,020,000 | 780,000 |
| Equity and liabilities: | ||
| Equity: | ||
| Ordinary share capital | 480,000 | 360,000 |
| Share premium | 180,000 | 60,000 |
| Retained earnings | 156,000 | 96,000 |
| 816,000 | 516,000 | |
| Non-current liabilities: | ||
| Long-term loan | 120,000 | 180,000 |
| Current liabilities: | ||
| Accounts payable | 62,400 | 48,000 |
| Accruals | 12,000 | 24,000 |
| Proposed dividends | 9,600 | 12,000 |
| 84,000 | 84,000 | |
| Total equity and liabilities | 1,020,000 | 780,000 |
| Sh. “000” | |
| Cost of sales | 22,000 |
| Gross profit | 9,500 |
| Interest expense | 3,000 |
| Tax expense | 1,116 |
| Net profit after tax | 4,464 |
| Sabuni Ltd. Statements of financial position as at 30 June: |
| 2022 | 2021 | |
| Sh. “000” | Sh. “000” | |
| Non-current assets: | ||
| Property, plant and equipment | 48,080 | 37,460 |
| Current assets: | ||
| Inventories | 13,420 | 11,980 |
| Accounts receivable | 6,020 | 5,120 |
| Cash and cash equivalents | 450 | 1,008 |
| Total current assets | 19,890 | 18,108 |
| Total Assets | 67,970 | 55,568 |
| Equity and liabilities: | ||
| Share capital | 4,160 | 3,800 |
| Share premium | 540 | 450 |
| Retained earnings | 34,182 | 21,618 |
| Revaluation reserve | 1,080 | 720 |
| Total equity | 39,962 | 26,588 |
| Non-current liabilities: | ||
| Long-term loan | 13,500 | 14,400 |
| Total non-current liabilities. | 13,500 | 14,400 |
| Current liabilities: | ||
| Accounts payable | 12,448 | 12,700 |
| Accrued expenses | 800 | 800 |
| Bank overdraft | 360 | 540 |
| Current tax | 900 | 540 |
| Total current liabilities | 14,508 | 14,580 |
| Total equity and liabilities | 67,970 | 55,568 |