The authorized share capital of Westmont Plc consists of 75,000 redeemable preference shares of

shs 10 each and 1,500,000 ordinary shares of shs 25 each. The preference shares are to be
redeemed in the year 2017. The trial balance of the company for the year ending 31st December,
2017 was as below:
Particulars Debit Credit
Ordinary shares, fully paid 15,375,000
6% Redeemable Pref. share capital 750,000
Share premium account 3,150,000
Profit and loss account 21,600,000
10% debentures 8,000,000
Deferred tax 1,080,000
Inventory 1.1.2017 25,073,000
Receivables 34,979,000
Payables 25,425,000
Provision for doubtful debts 90,000
Salaries outstanding 473,000
Vat payable 681,000
Interim dividend paid 430,000
Freehold land, at Cost 848,000
Building, at Cost 5,100,000
Plant-Cost 30,750,000
Provision for depreciation-Building 398,000
Provision for depreciation-Plant 12,059,000
Long term investment (quoted) 3,525,000
Interest paid 450,000
Purchases 141,450,000
Preference share dividend 32,000
Profit on sale of plant 173,000
Bad debts 23,000
Sales 179,000,000
Dividend from Investment – Gross 300,000
Withholding tax paid 738,000
Wages and salaries 24,450,000
Bank balance 806,000
268,654,000 268,654,000

Additional information:
 a. The 10% loan stock is secured against the Plant
b. During the year fixed assets were purchased as follows:
 Buildings shs 750,000
 Plant shs 4,050,000
 During the year Plant with an initial cost of shs 1,500,000 was disposed of.
c. Depreciation was charged on Buildings shs 53,000 and Plant shs 690,000 during the year.
These amounts have been erroneously deducted from inventory.
d. The quoted investment had a market value of shs 6,750,000 as on 31st December, 2017
e. The wages and salaries figure include the following:
Director’s salaries shs 122,000
General Manager’s salary shs 33,000
Company Secretary Salary shs 23,000
f. Shs 75,000 to be transferred from the deferred tax account
g. The stock at 31st December, 2017 was valued at shs 23,243,000 being the lower of cost
and net realizable value
h. The following provisions are to be made:
 Audit fees shs 53,000
 A final dividend on ordinary shares of shs 35 per share. This had been proposed before
the year end
 Provision for doubtful debts to be adjusted to shs 120,000
 Corporate tax of the year’s profit is estimated at shs 4,290,000. Last year’s tax was over
estimated by shs 15,000; this figure has been netted off against withholding tax
i. After payment of preference share dividend in September, 2017 the company decided to
redeem these shares. No entries have been made in the books in respect of the same. The
shares were redeemed at a premium of 5% and this is to be written off in the share
premium account.
Required:
Income statement for the year (do not classify expenses according to their functions)
Statement of changes in equity

A statement of Financial Position as at that date in a suitable form for publishing; in compliance
with IAS and the Company’s Act
Classcase plc is a retailer of domestic appliances. During the year ending 31.12.2019 their Trial
Balance was presented as below:
particulars Dr Cr
Ordinary shares of shs 10 each 10,000,000
Share premium 1,200,000
General reserve 480,000
Retained profit 31.12.2018 1,397,500
Inventory 3,367,200
Purchases 24,759,100
Revenue 50,903,700
Return inwards 1,362,000
Return outwards 1,212,200
Carriage inwards 63,400
Carriage outwards 437,900
Warehouse wages (59 staff members) 4,102,400
Salary to sales staff (21 employees) 3,051,100
Administrative wages and salaries 2,771,900
Plant & Machinery 6,100,000
Motor vehicle Hire 847,700
Provision for depreciation – Plant & Machinery 2,162,900
Distribution expenses 271,300
General administrative expenses 479,900
Directors remuneration 1,951,400
Ordinary share dividend 3,750,000
Rent receivable 371,500
Accounts receivable 16,235,700
Cash at bank and in hand 1,792,500
Accounts payable (Payable before 31.12.2020) 3,045,700
Bills payable (repayable before 31.12.2020) 570,000
71,343,500 71,343,500

Notes:
a) Inventory on 31.12.2019 was shs 4,127,800
b) Plant & Machinery is apportioned as: Distribution 60%, Administration 40%
c) Accrued auditors remuneration shs 710,000
d) Depreciate plant & Machinery at 20% on cost
 e) Of the Motor Hire expenses shs 550,000 is for distribution purposes
f) Corporation tax on profits at the rate of 35% is estimated at shs 2,385,000 and is payable
before 1.10.2020
g) Pension contribution for staff amounts to shs 425,500 and Social contribution amounted
to shs 801,200. These figures are included in Wages and Salaries in the trial balance. No
employee earned over shs 300,000 in the year
h) Plant costing shs 750,000 was bought during the year
i) Directors remuneration has been as follows:
I. Chairman shs 466,400
II. Managing Director shs 515,000
III. Finance Director shs 460,000
IV. Marketing Director shs 430,000
In addition each of the directors drew shs 20,000 as fees. Pensions are the personal responsibility
of directors.
Required: Income statement for the year ending 31.12.2019, including a statement of financial
position for the year

Milimani plc has presented their trial balance for the period ending 30.06.2020 as below:
Particulars Dr Cr
Share capital: 1,200,000 shares of sh. 1 each 1,200,000
Administrative expenses 400,000
Cash at Bank and in Hand 60,000
Corporate tax (overpayment for year ending 30.06.2019) 20,000
Deferred tax (1.7.2019) 460,000
Distribution costs 600,000
Dividend received (1.1.2020) 249,000
Freehold property, at cost 2,700,000
Accum. depreciation on Freehold Property (1.7.2019) 260,000
Plant & Machinery, at cost 5,200,000
Accumulated depreciation on Plant & Mach. (1.7.2019) 3,600,000
Interim dividend paid March 2020 36,000
Investment in listed company 2,000,000
Purchases 16,000,000
Research expenditure 75,000
Retained profit 1.7.2019 2,022,000
Inventory 1.7.2019 2,300,000
Accounts payable 2,900,000
Accounts receivable 2,700,000
Turnover 21,360,000
32,071,000 32,071,000
Further information has been provided as below:
a) Closing inventory is valued at shs 3,600,000
b) Depreciation for the year ending 30.06.2020 is to be charged on historical cost of the
non-current assets as below:
I. Freehold property 5%
II. Plant & Machinery 15%
c) The income tax rate is assumed to be 27%
d) The directors have proposed a final dividend of sh 0.60 per share
e) Corporation tax is at the rate of 35% and the amount payable is estimated at shs 850,000
f) Shs 40,000 is to be transferred to the deferred tax account
Required:
Based on the above information, prepare income statement for the year ending 30.06.2020; and
the Statement of Financial position as on that date in accordance with appropriate accounting
standards, and as is suitable for publishing.