Additional Information: Opening inventory worth shs 4.5 million was stolen from the store but management did not include this in the books. Closing inventory as at 31 December, 2023 was valued at shs 44.4 million (at cost). A cheque of shs 12.5 million received from the sale of goods was misplaced and never recorded anywhere in the books. The company issued additional 200,000 shares at shs 2,800 each on 20 December, 2023. The shares were fully paid for by the year end. The company’s policy on depreciation of non-current assets is as below; Non-current asset Rate per annum Method Motor vehicle 20% Reducing balance Equipment 20% Reducing balance Furniture & Fittings 12% Straight line 5 . Utilities paid in the year related to the period from 1 January, 2023 to April, 2024 while salaries for the year amounted to shs 26 million. 6. Interest on treasury bills and bank loan respectively remained outstanding. Investment on treasury bills was made on 1 March, 2023, while loan was acquired on 1. September, 2023. 7. Management agreed to revalue land to shs 600 million on 31 December 2023. 8. The directors declared a dividend of shs 80 for each ordinary share that was available as at 19 December, 2023. Shs 40 million of the declared dividends, had been paid by the end of year. Required: Prepare the Trading Account for Malaika Trading Ltd for the period ending 31 December, 2023. and Using information provided above, Prepare Journal entries for Malaika to record the additional information (1-8)
Additional Information:
- Opening inventory worth shs 4.5 million was stolen from the store but management did not include this in the books. Closing inventory as at 31 December, 2023 was valued at shs 44.4 million (at cost).
- A cheque of shs 12.5 million received from the sale of goods was misplaced and never recorded anywhere in the books.
- The company issued additional 200,000 shares at shs 2,800 each on 20 December, 2023. The shares were fully paid for by the year end.
- The company’s policy on depreciation of non-current assets is as below;
Non-current asset Rate per annum Method
Motor vehicle 20% Reducing balance
Equipment 20% Reducing balance
Furniture & Fittings 12% Straight line
5 . Utilities paid in the year related to the period from 1 January, 2023 to April, 2024 while salaries for the year amounted to shs 26 million.
6. Interest on treasury bills and bank loan respectively remained outstanding. Investment on treasury bills was made on 1 March, 2023, while loan was acquired on 1. September, 2023.
7. Management agreed to revalue land to shs 600 million on 31 December 2023.
8. The directors declared a dividend of shs 80 for each ordinary share that was available as at 19 December, 2023. Shs 40 million of the declared dividends, had been paid by the end of year.
Required:
Prepare the Trading Account for Malaika Trading Ltd for the period ending 31 December, 2023. and Using information provided above, Prepare
Step by step
Solved in 2 steps
