PART A: Prepare a Company’s Financial Reports Tika Company Ltd a wholesaler company

operating around Vava’u had provided you with the company’s Trial Balance as at 30 June 2019
with additional information and adjustments at balance date.

Tika Company Ltd

Trial Balance as at 30 June 2019.

Bank 150,000 Share capital(issued and paid $1 per shares) 1,000,000

Account Receivable 50,000 Account payable 21,000
Auditor’s remuneration 20,000 Land revaluation reserve 10,000
Cost of goods sold 514,000 Mortgage(9% due December 2022) 30,000
Director’s fee 40,000 Interest on investment 10,000
Insurance 14,000 Accumulated depreciation on building 15,000
Bad debts 12,000 Accumulated depreciation on equipment 10,000
Advertising 6,000 Retained earnings 190,000
Interest on mortgage 4,000 Sales 1,200,000
Inventory(30/06/20) 100,000 Allowance for doubtful debts 2,000
Land 400,000 General reserve 20,000
Equipment 340,000 Accumulated amortization of goodwill 15,000
General expenses 120,000 Rent received 1,000
Rate and Electricity 80,000
Office salaries 107,000
Shares Investment in ABC Ltd 241,000
Goodwill 70,000
Delivery expenses 10,000
Buildings 246,000
25,424,000.00 25,424,000.00
 You are required to prepare the following tasks for this part of the Assessment:

1) Explain the nature of the company form of business organization including ownership
structure and the liability of the owners.

For the financial information of the TIKA Company Ltd given above, you are required to
do the following tasks:

2) Prepare the adjusted Trial Balance that balance day adjustment include depreciation (straight
line or reducing value) bad and doubtful debts, accrued expenses, accrued revenue prepayments
and revenue in advance.

3) Prepare the accounting report in required format and classify assets and liabilities in the
financial reports of the company.

4) Prepare a classified Statement of Financial Performance for the company of TIKA Company
Ltd for the year ended 30 2019 incorporating balance day adjustments.

5) Calculate correctly the Opening Shareholders Equity

6) Present the owner’s equity section of the Statement of Financial Position for companies.

7) Prepare the Statement of Movement in Equity for the company Tika Company Ltd for the year
ended 30 June 2019.