KENYA METHODIST UNIVERSITY

FACULTY OF BUSINESS & MANAGEMENT STUDIES DEPARTMENT OF BUSINESS ADMINISTRATION ODLM ASSIGNMENT

COURSE CODE:

ACCF: 433

COURSE TITLE:

ADVANCED FINANCIAL ACCOUNTING

ASSIGNMENT:

2007/2008 3RD TRIMESTER

INSTRUCTOR:

STUDENTS NAME:

ALICE W N!OROGE

REG NO :

BUSS "#"0$%#2/2007

&'()*+,- " Wiper Ltd operates two branc es one in t e ead o!!ice in Nairobi and t e ot er in "#sia$ %#rc ases o! stoc& are 'ade e(c)#si*e)+ b+ t e ead o!!ice branc w ic does so'e 'odi!ication to t e stoc&s be!ore t e+ are so)d$ ,oods are sent to t e "#sia branc at 'odi!ied cost p)#s -./ and a)) sa)es b+ bot "#sia and ead o!!ice are 'ade at a 0ross pro!it o! 12/ on t e 'odi!ied cost$ T e tria) ba)ance as at 3. 4#ne 1..5 be!ore ta&in0 acco#nt o! t e #nder6'entioned ad7#st'ents were N.+/,0+ 0/.-12 8apita) %#rc ases 8ost o! 'odi!ication Drawin0s b+ t e owner Sa)es ,oods sent> recei*ed b+ branc Se))in0 and 0enera) e(penses Debtors> creditors "ranc and ead o!!ice c#rrent acco#nts -93.5$2 "an& ba)ances 5=. -29255 A44+*+,-.5 +-6,/7.*+,-: -$ ,oods wort S $ 11.9... sent to t e branc in 4#ne 1..5 were not recei*ed b+ t e branc #nti) 4#)+ 1..5w i)e a re'ittance o! s $ <1-92.. !ro' t e "#sia branc to t e ead o!!ice in 4#ne 1..5 was not recei*ed or recorded at ead o!!ice #nti) A#0#st 1..5$ An+ ad7#st'ents in respect o! t ese ite's are to be 'ade in t e ead o!!ice acco#nts$ 1$ T ere was a s orta0e in stoc&s o! a se))in0 *a)#e o! s $ -..9... at t e "#sia branc $ T ere were no s orta0es or s#rp)#s at t e ead o!!ice$ 1 -29255 3;5$2 29<=-$2 29<=-$2 :<2 -92<; -9:<: 39..5 :9;<5$2 121$2 152 =9<.. <9=1. <9<.. -.= 2=; 2< <9-.. -922. B')+. 0/.-12

S2 3000 3S2 000 S2 3000 S2 000

3$ Un'odi!ied 0oods costin0 s $ 2..9... were at t e Nairobi branc as at 3. 4#ne 1..5$ <$ T ere was no )oss or wasta0e in t e process o! 'odi!ication o! stoc&s b+ t e ead o!!ice$ T e branc Required: %repare in co)#'nar !or' !or t e Nairobi branc 9 "#sia branc and t e co'bined b#siness? a@ T e tradin0 and pro!it and )oss acco#nts !or t e +ear ended 3. 4#ne 1..5 8"2 7./9): b@ T e ba)ance s eet as at 3. 4#ne 1..5$ 88 7./9): ;TOTAL: 20 MAR<S= &'()*+,- 2 Mo0a&a ro))ed wit is car and died instantaneo#s)+ a!ter )earnin0 t at e ad won Ks s -. 'i))ion in t e recent)+ conc)#ded kuachua ushinde pro'otion$ On No*e'ber - 1..5 a!ter is e(ec#tors ad paid a)) debts9 Ae(cept !or t e 'ort0a0e on is !ree o)d o#se and debt to H88K@ testa'entar+ and !#nera) e(pense9 is estate was ascertained as !o))ows? S s$ B...C 8as in ban& acco#nts Dree o)d o#se To+ota coro))a Nissan s#nn+ Te)e*ision and '#sic s+ste' Debt d#e !ro' Moraa D#rnit#re and persona) e!!ects -.9... ordinar+ s ares in K#&# Ltd$ <92.. ordinar+ s ares in S#n0#ra M7an7a Ltd$ S $ ;..9... -./ U0anda Stoc& Inco'e recei*ed to date Interest Di*idend !ro' S#n0#ra M7an7a Less? Mort0a0e interest paid - 4#)+ 1..5 35 1=5 -1. -<5 -.9<.: 3 13. <932. 3912. 3=. 11. -.2 <. 3.1 -91.. 35. -=2 and)es on)+ 0oods recei*ed !ro' t e ead o!!ice$

E(tracts !ro' Mo0a&aEs wi)) )e!t beF#ests as !o))ows? i$ To eac o! '+ sons9 %api 4#nior9 Kar#bandi&a and Oc ien0 Dan0er S $ - 'i))ion$ ii$ To '+ wi!e9 Aban7#&a9 I )ea*e '+ !#rnit#re9 o#se o)d and persona) e!!ects and t e resid#e o! '+ estate$ iii$ To '+ da#0 ter In*est'ent9 '+ !ree o)d o#se !ree o! a)) d#ties$ T e o#se was s#b7ect to a 'ort0a0e o! s $ - 'i))ion earnin0 interest at 1</ per ann#' pa+ab)e 3Marc and 3- 4#)+$ D#t+ on t e o#se a'o#nts to s $ -3.9...$ i*$ To '+ !riend O0opa9 one o! t e 'otor cars owned b+ 'e at t e ti'e o! '+ deat 'a+ c oose$ *$ To '+ !riend9 O)o)o S $ -..9...$ *i$ To so'e o! '+ sisters6in6)aw S $ 3..9... *ii$ To '+ co#sin9 Na)ia&a9 '+ paintin0 o! Mona Lisa$ *iii$ To '+ dri*er Ka'ata S $ -2.9...$ i($ To '+ !riend Si'ba9 '+ o)din0 o! s $ ;..9... --./ U0anda stoc&$ Mo0a&a owed Si'ba s $ -..9...$ ($ To '+ sister App)e Wonder s $ 3..9... (i$ To '+ persona) assistant9 Disaster 4nr$9 a)! o! '+ o)din0s o! s#c s ares in K#&# Ltd$ (ii$ To '+ niece S#p##9 <9... ordinar+ s ares !ro' '+ o)din0 o! s#c s ares in K#&# Ltd$ (iii$ To '+ nep ew Ka'an0# s $ 1..9... pa+ab)e o#t o! '+ s ares in K#&# Ltd$ (i*$ To '+ !riend S #pa*# s $ 2.9...$ (*$ To '+ nei0 bo#r Ma&e)e)e9 s $ 2.9... (*i$ To '+ sister Vista9 s $ -..9... to estab)is a co'p#ter b#siness$ Mo0a&aEs e(ec#tors ascertained t at t e !o))owin0 bene!iciaries were dead? Son K#r#bandi&a died in 1..< )ea*in0 a wi!e and two c i)dren$ Son Oc ien0 Dan0er died 1..2 )ea*in0 a wi!e Sister App)e Wonder died in 1..3 )ea*in0 two da#0 ters Dri*er Ka'ata a0ed 25 died in t e sa'e accident as Mo0a&a$ It was i'possib)e to deter'ine t e order in w ic Mo0a&a and Ka'ata died T e e(ec#tors a)so ad*ice +o# t at? < e

i$ O0opa c ose t e To+ota coro))a$ ii$ Mo0a&a so)d is paintin0s o! t e Mona Lisa9 #sin0 t e proceeds to p#rc ase is o)din0s in S#n0#ra M7an7a Ltd$ iii$ T ere is no s#c in*est'ent as --./ U0anda stoc&$ T e re!erence in t e wi)) to --./ is t o#0 t to be t+pin0 error not pre*io#s)+ noticed$ i*$ Ma&e)e)e rep)ied in writin0 t at e did not want an+t in0 !ro' Mo0a&a beca#se Mo0a&a was a bad nei0 bo#r$ *$ Mo0a&a paid t e s $ -..9... d#rin0 b#siness$ Required: a@ A state'ent s owin0 t e distrib#tion o! Mo0a&aEs estate on - No*e'ber 1..5 A-2 Mar&s@ b@ A )ist o! )e0acies to w ic t e e(ec#tors s o#)d not assent9 brie!)+ 0i*e reasons !or t e decision$ A2 Mar&s@ ;TOTAL: 20 MAR<S= &'()*+,- 3 Distin0#is between t e !o))owin0 ter's? i$ Li!e tenant and tr#stee
as long as they (or some other person) live

is )i!e to

is sister Vista to estab)is

er

A 2 Mar&s@

life tenant - a tenant whose legal right to retain possession of buildings or lands lasts

L+6( ()*.*(? An estate )astin0 !or t e nat#ra) )i!e o! t e 0rantee9 ca))ed a C)i!e tenant$C I! a )i!e estate can be so)d9 a sa)e does not c an0e its d#ration9 w ic is )i'ited b+ t e nat#ra) )i!e o! t e ori0ina) 0rantee$ o A )i!e estate pur autre vie is e)d b+ one person !or t e nat#ra) )i!e o! anot er person$ S#c an estate 'a+ arise i! t e ori0ina) )i!e tenant se))s er )i!e estate to anot er9 or i! t e )i!e estate is ori0ina))+ 0ranted pur autre vie$

A person who, as a result of a grant of a life estate to his or her benefit, has exclusive possession, use and enjoyment of the trust property (such as a residence) - or subject to such other terms as the trust constitution may set out - until that beneficiary dies. Also known as a tenant for life . !ne who is entitled to land for the term of his own life" a life interest.... A tenant for life is entitled to the rents and profits of the land during his life but is not entitled to commit voluntary waste unless made unimpeachable for waste.

life tenant
A person entitled to the use of or the income from an asset during his or her lifetime. As an example, a person may stipulate in a will that all of his or her assets are to go to a charity but that the surviving spouse, designated as life tenant, is to have the use of the income from the deceased#s estate for his or her lifetime, following which the remainder of the assets in the estate are to pass to the charity. Trustee is a legal term that refers to a holder of property on behalf of a beneficiary. A trust can be set up either to benefit particular persons, or for any charitable purposes (but not generally for non-charitable purposes): typical examples are a will trust for the testator's children and family, a pension trust (to confer benefits on employees and their families), and a charitable trust. In all cases, the trustee may be a person or company, whether or not they are a prospecti e beneficiary.
An indi idual or organi!ation which holds or manages and in ests assets for the benefit of another. "he trustee is legally obliged to ma#e all trust-related decisions with the trustee's interests in mind, and may be liable for damages in the e ent of not doing so. "rustees may be entitled to a payment for their ser ices, if specified in the trust deed. In the specific case of the bond mar#et, a trustee administers a bond issue for a borrower, and ensures that the issuer meets all the terms and conditions associated with the borrowing.

T e person w o 'ana0es assets owned b+ a tr#st #nder t e ter's o! t e tr#st doc#'ent$ A tr#steeGs p#rpose is to sa!e0#ard t e tr#st and distrib#te tr#st inco'e or principa) as directed in t e tr#st doc#'ent$ Wit a si'p)e probate6a*oidance )i*in0 tr#st9 t e person w o creates t e tr#st is a)so t e tr#stee$

ii$ "an&r#ptc+ and )iF#idation

A 2 Mar&s@

8 apter5 ban&r#pc+9 w ic is tota) dis'issa) o! a)) +o#r debts Aas opposed to 8 apter-3 w ic is de*isin0 a red#ced a'o#nt pa+'ent p)an@ as 0otten 'ore di!!ic#)t to !i)e9 b#t it is not 0one B.-9/'>*1? is a )e0a))+ dec)ared inabi)it+ or i'pair'ent o! abi)it+ o! an indi*id#a) or or0aniHation to pa+ t eir creditors$

$an#ruptcy li%uidation also #nown as &hapter ' $an#ruptcy is a legal process where most if not all of your debt can be eliminated. It may ta#e up to six months. In law, liquidation refers to the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed. (i%uidation can also be referred to as winding-up or dissolution, although dissolution technically refers to the last stage of li%uidation.

(i%uidation may either be compulsory (sometimes referred to as a creditors' liquidation) or oluntary (sometimes referred to as a shareholders' liquidation, although some oluntary li%uidations are controlled by the creditors, see below). In finance, liquidation is also sometimes used as con enient shorthand for con erting an asset to cash.

Liquidation
$. %hen a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. &. Any transaction that offsets or closes out a long or short position. 'reditors li(uidate assets to try and get as much of the money owed to them as possible. )hey have first priority to whatever is sold off. After creditors are paid, the shareholders get whatever is left with preferred shareholders having preference over common shareholders.

iii$ De'onstrati*e )e0ac+ and ,enera) )e0ac+

A 2 Mar&s@

A specific legacy is Cso'et in0 w ic a testator9 identi!+in0 it b+ a s#!!icient description and 'ani!estin0 an intention t at it s o#)d be en7o+ed in t e state and condition indicated b+ t at description9 separates in !a*o#r o! a partic#)ar )e0atee !ro' t e 0enera) 'ass o! is persona) estate9C e.g. a 0i!t o! C'+ portrait b+ I9C na'in0 t e artist$ A general legacy is a 0i!t not so distin0#is ab)e !ro' t e 0enera) 'ass o! t e persona) estate9 e.g. a 0i!t o! Jioo or o! a 0o)d rin0$ A demonstrative legacy parta&es o! t e nat#re o! bot t e precedin0 &inds o! )e0acies9 e.g. a 0i!t 6 o!K-.. pa+ab)e o#t o! a na'ed !#nd is a speci!ic )e0ac+ so !ar as t e !#nd na'ed is a*ai)ab)e to pa+ t e )e0ac+K a!ter t e !#nd is e( a#sted t e ba)ance o! t e )e0ac+ is a 0enera) )e0ac+ and reco#rse '#st be ad to t e 0enera) estate to satis!+ s#c ba)ance A de'onstrati*e )e0ac+ di!!ers !ro' aspeci!ic )e0ac+9 a 0i!t o! partic#)ar persona) propert+ b+ wi))$ A de'onstrati*e )e0ac+ is pa+ab)e !ro' t e 0enera) assets o! t e estate t at a*e not been speci!ica))+ de*ised or beF#eat ed i! its desi0nated so#rce as been adee'ed or no )on0er e(ists or i! it is inadeF#ate to satis!+ t e 0i!t$

$. A legacy is general, when it is so given as not to amount to a be(uest of a specific part of a testator#s personal estate" as of a sum of money generally, or out of the testator#s personal estate, or the like. $ *op. +eg. &,-" +own. +eg. $.. A general legacy is relative to the testator#s death" it is a be(uest of such a sum or such a thing at that time, or a direction to the executors, if such a thing be not in the testator#s possession at that time, to procure it for the legatee. 'as. )emp. )alb. &&/" Amb. ,/" 0 1es. jr. -/," / 1es. jr. 233. 0.-&. A specific legacy is a be(uest of a particular thing, or money specified and distinguished from all other things of the same kind" as of a particular horse, a particular piece of plate, a particular term of years, and the like, which would vest immediately, with the assent of the executor. $ *op. +eg. $03" +ownd. +eg. $., $$" $ Atk. 0$,. A specific legacy has relation to the time of making the will" it is a be(uest of some particular thing in the testator#s possession at that time, if such a thing should be in the testator#s possession at the time of his death. 4f it should not be in the testator#s possession, the legatee has no claim. )here are legacies of (uantity in the nature of specific legacies, as of so much money with reference to a particular fund for their payment. )ouchs. 022" Amb. 2$." 0 1es. ,-," 2 1es. 5 6ea. ,. ,. )his kind of legacy is so far general, and differs so much in effect from a specific one, that if the funds be called in or fail, the legatees will not be deprived of their legacies, but be permitted to receive them out of the general assets" yet the legacies are go far specific, that they will not be liable to abate with general legacies upon a deficiency of assets. & 1es. jr. -0." , 1es. jr. &.-" $ 7er. effectually disposed of by *. his will. +own. +eg, $/8. $." 6ac. Abr. +egacies, 4. -.-2. A residuary legacy is a be(uest of all the testator#s personal estate, not otherwise /. As to the interest given, legacies may be considered, as absolute, for life, or in remainder. $. A legacy is absolute, when it is given without condition, and is to vest immediately. 9ee & 1ern. $8$" Ambl. /,." $3 1es. 8-" +ownd. $,$" & 1ern. 02." $ 1ern. &,0" , 1es. 0-$" 'om. :ig. Appendix, 'hancery 4;. 8.-&. A legacy for life is sometimes given, with an executory limitation after the death of the tenant for life to another person" in this case, the tenant for life is entitled to the possession of the legacy, but when it is of specific article#s, the first legatee must sign and deliver to the second, an inventory of the chattels expressing that they are in his custody for life only, and that afterwards they are to be delivered and remain to the use and benefit of the second legatee. 2 <. %ms. 22-" $ Atk. 0/$" & Atk. 8&" $ 6ro. '. '. &/3" & 1ern. &03. 9ee $ *op. +eg. 0.0, ,, ,8.. 4t seems that a be(uest for life, if specific of things (uo ipso usu consumuntur, is a gift of the property, and that there cannot be a limitation over, after a life interest in such articles. 2 7eriv. $30. +=>A'?, :=7!@9)*A)41=. A demonstrative legacy is a be(uest of a certain sum of money" intended for the legatee at all events, with a fund particularly referred to for its payment" so that if the estate be not the testator#s property at his death, the legacy will not failA but be payable out of general assets. $ *op. +eg. $,2" +ownd. +eg 8," 9winb. 08," %ard on +eg. 2/..

i*$ %ro*ab)e and non6pro*ab)e debts

meetings in the

A 2 Mar&s@
bankruptcy.

A provable debt is a claim which entitles a creditor to share in any dividends and to vote at

>enerally a creditor with a provable debt is prevented from continuing any recovery proceeding against a debtor upon their bankruptcy. )here are very limited exceptions.

Which
Secured

debts

are

and

arent

provable

debts?
Debt

A secured debt is where a creditor has a hold over an asset until the debt is paid for. 9hould the debtor default on payments, the creditor has the right to sell the asset to reduce the debt. >enerally, nothing in the 6ankruptcy Act prevents a secured creditor to realise or otherwise deal with their security. >enerally, any deficiency from the sale of the asset is considered to be a provable debt.

Unsecured

Debts

7ost

unsecured

debts

are

provable

in

bankruptcy.

'ommon B B 'redit card )rade

examples debts and creditors

of personal

provable loans incurred before incurred

debts before

areAbankruptcy" bankruptcy"

)here are some debts which are not provable and therefore are not CcoveredD by bankruptcy eg. 'ourt imposed fines, some portions of student loans.

)here are also debts which are provable but where the bankrupt is not released from the liability upon discharge from bankruptcy eg. debts incurred by fraud, maintenance, child support .

)here are debts which are provable (and the creditor can vote at meetings and share in any dividends) where the creditor can also continue or commence recovery action against the debtorDs non-divisible property andEor income after the date of bankruptcy eg. maintenance, child support.

)here are debts which are provable but which if not paid will cause a service to be terminated for non-payment eg. supply of electricity, gas, telephone etc or the cancellation of a drivers licence

andEor

motor

vehicle

registration

eg.

parking

and

driving

infringement

notices.

9ome debts have not sufficiently CcrystalisedD for them to be covered by bankruptcy. =g. A claim for unli(uidated damages against a debtor will not be covered unless the dispute as to whether they are liable and how much they are liable for has been settled prior to bankruptcy (ie a settlement has been agreed between the parties or judgement has been entered). A common example of an unli(uidated claim for damages is an action for personal injury or property damage for negligence.

)herefore the (uestion of what debts a bankrupt will be released from upon the making of a se(uestration order or the acceptance of a debtorDs petition, will depend upon the nature of the debt.

!nly CprovableD debts entitle a creditor to share in any dividend from the administration and to vote at any meeting. A debt is not covered by bankruptcy unless it is provable.

;TOTAL: 20 MAR<S=

ANSWERS &UESTION " Wor&in0s @(.4 ,66+1( A/,)) >/,6+* Head o!!ice sa)es to e(terna) c#sto'ers o! Ks s =9<..9... at 0ross pro!it o! 12/ on 'odi!ied cost? 8ost o! sa)es L -..>-12M=9<..9...L 29-1.9... ,ross pro!it is t ere!ore Ks s "B280B000 A=9<..9...629-1.9...@ Head o!!ice sa)es to "#sia "ranc o! Ks s <9=1.9... at 0ross pro!it o! -./ on 'odi!ied cost? 8ost o! sa)es L -..>--. M<9=1.9...L <91..9... ,ross pro!it is t ere!ore Ks s 420B000 A<9=1.9...6<91..9...@ Tota) 0ross pro!it !or t e ead o!!ice is t ere!ore Ks s "B700B000 A<1.9...N-91;.9...@ -.

B')+. 0/.-12 A/,)) >/,6+* A)) sa)es to e(terna) c#sto'ers o! Ks s <9-..9... at 0ross pro!it o! 12/ on 'odi!ied cost$ T e 'odi!ied cost o! 0oods so)d at branc is t ere!ore? -..>-12M<9-..9...L 391;.9... %)#s -./ on 'odi!ied cost c ar0ed b+ ead o!!ice ? 391;.9...M-./L 31;9... Tota) cost o! sa)es !or t e branc ? 391;.9...N31;9... L 39=.;9... ,ross pro!it !or t e branc is t ere!ore 4%2B000 A<9-..9...639=.;9...@

S*,19 )2,/*.A( ,6 <)2) "00B000 8)(55+-A C.5'(: .* B')+. 0/.-12 Modi!ied cost *a)#e o! stoc& s orta0e ? -..>-12M-..9...L ;.9... %)#s t e -./ c ar0ed b+ ead o!!ice? -./ M;.9...L ;9... Tota) cost o! stoc& )ost at "#sia ? ;.9...N;...L ;;9... U-/(.5+D(4 >/,6+* >/,C+)+,-) G,,4) +- */.-)+* *a)#ed at cost p)#s -./ L 11.9... Act#a) cost to ead o!!ice is t ere!ore? -..>--.M11.9...L1..9... Unrea)iHed pro!it ? 11.9...61..9...L 20B000 S*,19 .* *2( 0/.-12 at 'odi!ied cost p)#s -./ ead o!!ice c ar0e is Ks s 5.<9... Aba)ancin0 !i0#re@$ Act#a) cost to ead o!!ice ? -..>--.M5.<9...L =<.9... Unrea)iHed pro!it is Ks s E4B000A5.<9...6=<.9...@ C5,)+-A )*,19 At t e ead o!!ice Ks s 1;.9... Aba)ancin0 !i0#re@ At "#sia 5.<9...6#nrea)iHed pro!itsL 5.<9...6=<9...L =<.9... Tota) c)osin0 stoc&? Ks s %20B000 A=<.9...N 1;.9...@ NB Nairobi branc and "#sia branc c)osin0 stoc& as at 3.$=$.5 are arri*ed at as t e ba)ancin0 !i0#res a!ter co'p#tin0 e*er+t in0 e)se in t e pro!it and )oss acco#nt --

 8o'bined 0ross pro!it is a ba)ancin0 !i0#re$

-1

A-)F(/ G'()*+,- "A WIPER LIMITED TRADING PROFIT AND LOSS ACCOUNT FOR T@E YEAR ENDED 30 !UNE 2007 N.+/,0+ P./*+1'5./) %#rc ases Less? #n'odi!ied 0oods 3.$=$.5 Modi!ication cost ,oods !ro' -95..9... --93..9... and ,ross :<29... -.=9... ;;9... -9.2-9... pro!it ;.9... -95..9... <:19... 19-..9... <9<..9... <:19... <9;:19... 19-..9... --95..9.. . Se))in0 0enera) e(penses Stoc& s orta0e Unrea)iHed pro!it on branc c)osin0 stoc& Unrea)iHed pro!it on branc c)osin0 stoc& Net pro!it 1.9... =5-9... -95..9... A-)F(/ G'()*+,- "B 1:;9... <:19... :=:9... 19-..9... =<9... 12192.. :9=..9... :9=..9... 8)osin0 stoc& 1;.9... --93..9.. . 5.<9... :1.9... at A2..9...@ :93<592.. B/.-12 :9;<592.. B')+. B/.-12 C,70+-(4 P./*+1'5./) Sa)es ,oods sent to "#sia? Recei*ed In transit Stoc& s orta0e ;;9... ;.9... <9<..9... 11.9... 1..9... N.+/,0+ B/.-12 =9<..9... B')+. B/.-12 C,70+-(4 <9-..9.. -.92..9... .

NR" branc ,ross pro!it

<9;:19.. --95..9... .

-95..9...

<:19...

19-..9...

-3

WIPER LIMITED BALANCE S@EET AS AT 30 !UNE 2007 N.+/,0+ P./*+1'5./) 8apita) Add? net pro!it B/.-12 -922.9... :=:9... 192-:9... 1529... 191<<9... NR" c#rrent 39..59... !or on =<9... 8as transit in <1-92.. 6 <1-92.. -9=.292.. 2<9... B')+. B/.-12 C,70+-(4 P./*+1'5./) "#sia c#rrent A>8 8#rrent assets ? %rocessed Stoc& 191<<9... Unprocessed stoc& ,oods transit 39.=-9... Debtors "an& in 11.9... -92<;9... 5=.9... 6 2=;9... 3;592.. 1..9... 19--=9... -9-<592.. 1;.9... 2..9... 5.<9... 6 :1.9... 2..9... -9=.292.. N.+/,0+ B/.-12 B')+. B/.-12 C,70+-(4

Less? drawin0s

acco#nt 8reditors %ro*ision #nrea)iHed pro!it branc stoc& %ro*ision !or #nrea)iHed pro!it on ,IT

1.9... 293329...

-9=2:92..

293.29...

293329...

-9=2:92..

293.29...

@(.4 ,66+1( 0,,9) "ranc c#rrent acco#nt "a)ance ">D Net pro!it Ks s -9:<:9... ,oods in transit 1:;9... 8as in transit "a)ance 8>D 191<59... -< Ks s 11.9... <1-92.. -9=.292.. 191<59...

B')+. 0/.-12 0,,9) Head o!!ice 8#rrent acco#nt "a)ance 8>D Ks s -9=.292.. "a)ance ">D Net o!!ice -9=.292.. pro!it 1:;9... -9=.292.. Ks s -93.592..

trans!er to ead

-2