The following is the summarized statement of financial position Malover Ltd at 31 December 2019 and 2020: 31.12.20 31.12.19 Assets Sh. '000' Sh. '00' 380,000 360,000 Freehold property at cost Plant and machinery at cost Furniture and fittings at cost 70,000 67,000 3,200 4,500 Investments 20,000 --- Stock 68,000 64,000 Debtors and prepaid expenses 79,000 68,000 Bank balance 41,000 18,000 Total assets 642,500 600,200 Equity and liabilities: Share capital (issued and fully paid shares of Sh20 each) 350,000 300,000 Share premium 8% redeemable preference capital (shares of Sh200 each)--- 32,500 40,000 100,000 Profit and loss account 33,000 29,200 10% debentures 30,000 --- Capital redemption reserve fund Taxation 50,000 45,000 40,000 --- Proposed dividend 30,000 27,000 72,000 64,000 642,500 600,200 Trade creditors and accruals Total equity and liabilities Additional information a. The investments were disposed of for cash Sh. 19,800,000. Furniture and fittings with a net book of Sh. 200,000 were sold for cash Sh. 180,000. b. The preference shares were redeemed at a premium provided out profit the share premium account. Subsequently, 2,500,000 ordinary shares of Sh20 each were issued at a premium of 25%. c. On January 1st 2020, Malover Ltd. issued Sh. 300,000 10% debentures at Sh96 each for every Sh100 nominal. The discount arising from this issue was charged to the profit and loss account. d. The depreciation charged during the year was as follows: Plant and Machinery Sh. 21,400,000 Furniture and fittings Sh. 800,000
The following is the summarized statement of financial position Malover Ltd at 31 December 2019 and 2020: 31.12.20 31.12.19 Assets Sh. '000' Sh. '00' 380,000 360,000 Freehold property at cost Plant and machinery at cost Furniture and fittings at cost 70,000 67,000 3,200 4,500 Investments 20,000 --- Stock 68,000 64,000 Debtors and prepaid expenses 79,000 68,000 Bank balance 41,000 18,000 Total assets 642,500 600,200 Equity and liabilities: Share capital (issued and fully paid shares of Sh20 each) 350,000 300,000 Share premium 8% redeemable preference capital (shares of Sh200 each)--- 32,500 40,000 100,000 Profit and loss account 33,000 29,200 10% debentures 30,000 --- Capital redemption reserve fund Taxation 50,000 45,000 40,000 --- Proposed dividend 30,000 27,000 72,000 64,000 642,500 600,200 Trade creditors and accruals Total equity and liabilities Additional information a. The investments were disposed of for cash Sh. 19,800,000. Furniture and fittings with a net book of Sh. 200,000 were sold for cash Sh. 180,000. b. The preference shares were redeemed at a premium provided out profit the share premium account. Subsequently, 2,500,000 ordinary shares of Sh20 each were issued at a premium of 25%. c. On January 1st 2020, Malover Ltd. issued Sh. 300,000 10% debentures at Sh96 each for every Sh100 nominal. The discount arising from this issue was charged to the profit and loss account. d. The depreciation charged during the year was as follows: Plant and Machinery Sh. 21,400,000 Furniture and fittings Sh. 800,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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prepare cashflow statement for the year ended 2020 december 31st in line with IAS7 - International Accounting Standard
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