Madaraka Ltd.

Statement of comprehensive income

For the year ended 31 March 2020 Dr.
KES'000' KES'000'
Sales 206,500 Asset
Less: Cost of Sales
Opening stock 12,000
Add: Purchases 138,750 Gain
Less: Closing inventory (16,700)
(134,050)
Gross profit 72,450

Other incomes
Rent received 3,600
Investment income 340
Gain on disposal of motor van 190
4,130 Dr.
76,580
Expenses Motor van
Depreciation on motor vans 660 Gain
Administration expenses 7,650
Directors remuneration 25,000
Distribution expenses 10,000
(43,310)
Operating profit/PBIT 33,270
Finance cost- Bank interest 162
Finance cost- Debenture interest 1,050
(1,212)
Profit before tax 32,058
Income tax/Corporation tax (12,700)
Profit after tax 19,358 Dr.

Balance c/d (sfp)

 Disposal A/C Cr. Dr.

X Acc. Depn X Balance b/d

Cash X Bank overdraft
Trade-in X Disposal
X Loss X
X X

Disposal A/C Cr. Dr.

Motor van 900000 Acc. Depn 540000 Acc. Depn

190000 Motor van (trade-in) 550000
1090000 1090000

Bank overdraft A/C Cr.

Gain/Loss on disposal= Sales procee
Balance c/d (sfp) 980,000 Balance b/d 730000 Gain/Loss on disposal= Sales procee
Motor van 250000
980000 980000
 Motor vans A/C Cr. Dr.

2,500,000 Disposal 900000

nk overdraft 250,000
550000 Balance c/d (sfp) 2,400,000
3300000 3300000

Depreciation A/C Cr. Acc. Depn=20%*900,000*3 ye

660000 I/S 660000

Depreciation= 20%*3,300,000

ain/Loss on disposal= Sales proceeds- Net book value of the asset

ain/Loss on disposal= Sales proceeds-(Cost-Accumulated depreciation)
550,000-(900,000-540,000)
190,000
 Acc. Depreciation for motor vans A/C Cr.

Disposal 540000 Balance b/d 1000000

Balance c/d (sfp) 1,120,000 Depn 660000
1660000 1660000

Acc. Depn=20%*900,000*3 years

540000

Depreciation= 20%*3,300,000
660000
Madaraka Ltd.
Statement of changes in equity
For the year ended 31 March 2020
Share capital Retained profits Total
KES'000' KES'000' KES'000'
Balance b/d 42,000 17,852 59,852
Adjustments
Interim dividend paid - (1,260) (1,260)
Total comprehensive for the year - 19,358 19,358
Balance c/d 42,000 35,950 77,950
Madaraka Ltd.
Statement of financial position
As at 31 March 2020
KES'000' KES'000' KES'000'
Accumulated Net book
Non-current assets Cost depreciation value
Motor vans 2,400 (1,120) 1,280
Leasehold properties 75,000 - 75,000
76,280

Investments 6,750
83,030

Current assets
Debtors 31,000
Stock 16,700
47,700
TOTAL ASSETS 130,730

Current liabilities
Creditors 24,100
Bank overdraft 980
Tax payable 12,700
(37,780)
92,950
Financed by:
Issued share capital 42,000
Retained profits 35,950
Shareholders' equity 77,950

Non-current liabilities
7% debentures 15,000
92,950
Boresha Ltd.
Statement of comprehensive income Dr.
For the year ending 31 December 2020
KES KES
Sales 142,770
Less: Cost of Sales
Opening inventory 13,930
Add: Purchases 108,440
Less: Closing stock (14,600)
(107,770)
Gross profit 35,000

Expenses
Loss on disposal 80
Depreciation 3,019
Directors remuneration 4,000 Dr.
Wages & salaries 13,127
Increase in provision for bad debts (350-275) 75
Bad debts written off 1,075
Motor & delivery expense 3,258
Rates (700-140) 560
General expenses 5,846
Legal expenses (644-380) 264
(31,304)
Profit before tax 3,696
Corporation tax (1,109)
Profit after tax 2,587

Gain/Loss on disposal= Sale

Gain/Loss on disposal= Sale

Depreciation= 20%*(15,000

Accumulated depreciation=

Motor vans=15000+650+12
 Motor vans A/C Cr. Dr.

Balance b/d 15000 Disposal 680

Addition (650+125) 775 Balance c/d 15095
15775 15775

2020
w Depreciation= 20%*15095
3019

Disposal A/C Cr. Dr.

Motor vans 680 Prov. For dep 475

Cash 125
Loss 80
680 680

Gain/Loss on disposal= Sales proceeds- Net book value of the asset

Gain/Loss on disposal= Sales proceeds-(Cost-Accumulated depreciation)
125-(680-475)
80

Depreciation= 20%*(15,000+650+125-680)
3019
Accumulated depreciation=6750-475+ 3019
9294
Motor vans=15000+650+125-680
15095
 Accumulated depreciation for motor vans A/C Cr. Dr.

Disposal 475 Balance b/d 6750

Balance c/d 9294 Depn 3019
9769 9769

tion= 20%*15095

Depreciation expense Cr.

Acc. Depreciation 3019 I/S 3019

Cr.
Boresha Ltd.
Statement of changes in equity
For the year ended 31 December 2020
Share capital Retained profits TOTAL
KES KES KES
Balance b/d 80,000 2,430 82,430
Profit for the year - 2587 2587
Balance c/d 80,000 5,017 85,017
Boresha Ltd.
Statement of financial position
As at 31 December 2020
KES'000' KES'000' KES'000'
Accumulated Net book
Non-current assets Cost depreciation value
Freehold premises 59,380 - 59,380
Motor vans 15,095 (9,294) 5,801
65,181
Current assets
Bank balance 6,615
Trade debtors (12395-1075) 11,320
Less: provision for bad debts (350) 10,970
Stock 14,600
Rates prepaid 140
32,325
TOTAL ASSETS 97,506

Current liabilities
Creditors 11,380
Tax payable 1,109
(12,489)
85,017
Financed by:
Authorized and issued share capital 80,000
Retained profits 5,017
85,017
Mali Mingi
Statement of comprehensive income
For the year ending 31 August 2018
KES'000' KES'000'
Sales (5060-60) 5,000
Less: COS
Opening 900
Purchases 3,050
Closing (1,300)
(2,650)
Gross profit 2,350
Incomes
Discount received 40
Gain on disposal of fixtures & fittings 20
2,410
Expenses
Depreciation- buildings (2.5%*1800) 45
- fixtures & fiitings (10%*3800) 380
Increase in allowance for doubtful debts (64500-40000) 24.5
Establishment expenses 270
Administration expenses 600
Discounts allowed 60
(1,380)
Interest on debentures (9%*800) (72)
Profit before tax 959
Corporation tax @30% (288)
Profit after tax 671
Dr. Disposal Cr. Dr.

FF 200 Acc 160

Gain 20 Cash 60
220 220

Dr. FF Cr. Dr.

Bal b/d 4000 Disp 200

Bal c/d 3800
4000 4000

Depreciation
10%*3800
380

Gain/loss= Sales proceeds- nbv

60,000-40000
20000
 Depn Cr.

Acc. Depn 380

Acc. Depn Cr.

Disp 160 Bal b/d 800

Bal c/d 1020 Depn 380
1180 1180
Mali Mingi
Statement of changes in equity
For the year ending 31 August 2018
OSC PSC Retained earnings General reserve Total
Balance b/d 2,500 600 1,990 - 5,090
Total comprehensive income 671 - -
Transfer to general reserve (100) 100 -
Balance c/d 2,500 600 2,561 100 5,090
Mali Mingi
Statement of financial position
As at 31 December 2018
Ksh. Ksh. Ksh.
Non-current assets Cost Acc. Depn NBV
KES'000' KES'000' KES'000'
Land 200 - 200
Buildings 1,800 (645) 1,155
Furniture and fittings 3,800 (1,020) 2,780
4,135
Current assets
Trade receivables 1,218
Less: Allowance for doubtful debts (65) 1,154
Bank 760
Inventory 1,300
3,214
TOTAL ASSETS 7,349

Current liabilities
Tax payable 288
Trade payables 500
788
Working capital 6,561

Financed by:
Issued and fully paid ordinary shares of KES. 20 each 2,500
8% redeemable preference shares of KES. 20 each 600
General reserve 100
Retained earnings 2,561
5,761
Non-current liabilities
9% debentures 800
6,561