The following trial balance has been extracted from the books of Marceline Company as
at 31/March/2018
Shs'000
Land at cost
120,000
Building at cost
250,000
Equipment at cost
196,000
Vehicles
284,000
Goodwill
300,000
Shs'000
Accumulated depreciation at 1 April 2017
Building
90,000
Equipment
76,000
Vehicles
132,000
Inventory at 1 April 2017
107,000
Trade receivables and Payables
183,000
117,000
Allowance for receivables
8,000
Bank Balance
57,000
Corporation
6,000
Ordinary shares of 1/= each
200,000
Retained earnings at 1 April 2017
503,000
Sales
1,432,000
Purchases
488,000
Director's fees
150,000
Wages and salaries
276,000
General distribution costs
101,000
General administrative expenses
186,000
Dividend paid
20,000
Dividend received
30,000
Disposal of vehicles
10,000
2,661,000
2,661,000
The following information is also available:
1. The company’s inventory at 31 March 2018 is value at 119,000,00
2. The company’s non-depreciable land was valued at 300,000,000 /= on 31 March
2018 and this valuation is to be incorporated into the accounts for the year to 31
March 2018.
3. The company’s depreciation policy is as follows: Buildings - 4% and Vehicles
25% per year on cost
Equipment
40% Per year on reducing balance
st
4. On 1 February 2018, a vehicle used entirely for administrative purposes was sold
for 10,000,000/=. The sales proceed were banked and credited to a disposal
account but no other entries were made in relation to this disposal. The vehicle
had cost 44,000,000/= in August 2014. This was the only disposal of a noncurrent asset made during the year to 31 March 2018.
5. Depreciation is apportioned as follows:
Distribution costs
Administrative expenses
Buildings
40%
60%
Equipment
25%
75%
Vehicles
30%
70%
6. Trade receivables include a debt of 8,000,000/= which is to be written off. The
allowance for receivables is to be adjusted to 4% of the receivables which remain
after this debt has been written off.
7. Corporation tax for the tax the year to 31 March 2017 was over estimated by
6,000,000/=. The corporation tax liability for the year to 31 March 2018 is
estimated to be 30,000,000/=.
8. One-quarter of wages and salaries were paid to distribution staff and the
remaining threequarters were to administrative staff.
9. A dividend of 10% per ordinary share was paid on 31 December 2017. No further
dividends are proposed for the year to 31 march 2018
10. General administrative expenses include bank overdraft interest of 9,000,000/=.
Required:
Prepare the following statements for Marceline Company in accordance with the
requirements of international standards.
(a) A statement of comprehensive income for the year to 31 march 2018
(10
marks)
Statement of financial positions as at 31 march 2018
(10 marks) (c)
Statement of changes in equity for the year 31 march 2018
(5 marks)