THE SHAMBERERE NATIONAL POLYTECHNIC

P.O. BOX 1316-50100, Kakamega,

Email: [email protected] OR
[email protected], Mobile Phone: 0739-922-223,
Website: www.shambererenationalpoly.ac.ke

CONSTRUCTION MANAGEMENT

CLASS: DBT/DCE III

END OF TERM EXAMINATION -MARKING SCHEME

SEPTEMBER-DECEMBER 2024

TIME: 2 Hours

DIPLOMA IN BUILDING AND CIVIL ENGINEERING

INSTRUCTIONS TO CANDIDATES

Write your admission number and name

Answer all the questions

Do not write on the question paper

Switch off all electrical gadgets and phones

Attempt any THREE questions

1. (a) (i)Explain FIVE phases of a project life cycle.

Initiation Phase
In the initiation phase, the project idea is explored, evaluated, and formalized. Key
stakeholders are identified, a project charter or proposal is developed, and feasibility
studies are conducted. The main objective here is to determine whether the project is
viable and aligns with organizational goals.

Planning Phase
During the planning phase, detailed project plans are created. This includes defining
the project scope, objectives, and deliverables. Resources are allocated, budgets and
timelines are established, and risk management strategies are developed. A Work
Breakdown Structure (WBS) and Gantt charts are often used to provide a clear
roadmap for the project.

Execution Phase
In the execution phase, the project plan is put into action. Project resources are used to
complete tasks as outlined in the plan. Project managers oversee the team, monitor
progress, and ensure adherence to the schedule, budget, and quality standards. This
phase involves constant coordination and communication among team members.

Monitoring and Controlling Phase

This phase runs concurrently with the execution phase, as project managers measure
project performance and progress. They track key performance indicators (KPIs),
assess risks, control quality, and make adjustments if necessary. The goal is to ensure
the project stays on course and within the defined scope, schedule, and budget.

Closing Phase
The closing phase marks the completion of the project. Final deliverables are handed
over to the client or stakeholders, and any outstanding documentation is completed.
Project evaluations are conducted, lessons learned are documented, and team
members are reassigned. A project closure report may be generated to summarize
outcomes and areas for improvement.

(ii)State THREE factors involved in each of the following:

(I)precontract planning

(II)post contract planning

(16 marks)

(I) Pre-Contract Planning:

Project Scope Definition

This involves clearly defining the project objectives, deliverables, and constraints.
Establishing scope helps all stakeholders understand what the project will entail and
any limitations involved.
Resource Allocation
This includes determining the necessary materials, workforce, equipment, and budget
requirements for the project. It ensures that adequate resources are planned for project
success.

Risk Assessment and Mitigation

Identifying potential risks that may affect project success and developing mitigation
strategies. This ensures that the project team is prepared to manage unforeseen issues
effectively.

(II) Post-Contract Planning:

Detailed Scheduling
Creating a timeline with specific tasks, milestones, and deadlines. This provides a
clear framework for project execution and helps in monitoring progress.

Quality Control Plans

Developing a quality control system to ensure all work meets the project’s standards
and specifications. This helps in maintaining client satisfaction and project
compliance.

Communication Strategy
Establishing communication channels for stakeholders and team members. Effective
communication ensures that everyone involved is informed of project progress and
any changes.

(b)Explain the following terms as used in construction management

(i)work measurement;

(ii)method study.
(4 marks)

Work Measurement:Work measurement is a technique used to assess the amount of time

required for a qualified worker to complete a specific task at a defined level of performance.
It involves calculating the time, effort, and resources needed to complete activities,
providing a basis for setting labor standards and improving workflow. In construction, work
measurement helps ensure tasks are completed within a set timeframe, which aids in
effective scheduling and resource management.

Method Study: Method study, also known as method analysis, is the systematic
examination of the procedures and methods used in carrying out construction tasks.
The objective is to identify the most efficient, safe, and cost-effective way of
completing work by analyzing the sequence of operations, tools, and labor. In
construction management, method study is used to optimize processes, reduce waste,
and ensure quality standards by designing better workflows.
2.(a)Table 1 shows activities and duration of a section of work

(i)Use the information to draw a network diagram and show the critical path.

(ii)Determine the duration required to complete this section of work.

(8 marks)

Table 1

Activity Event Duration (week)

A 1-2 3

B 1-3 2

C 1-4 5

D 2-5 0

E 2-7 6

F 3-5 4

G 4-5 3

H 4-6 1

I 5-7 4

J 6-7 2

Calculation of critical path and project duration

Critical path calculation

The critical path in this project is through the activities C → G → I, which

corresponds to the sequence of events 1 → 4 → 5 → 7.

Project Duration

The total duration required to complete this section of work is 12 weeks.

(b)Describe THREE documents used during material procurement

(6 marks)

 Purchase Requisition: An internal document submitted by a department to

request materials or services. It outlines the type, quantity, and specifications of
materials needed and initiates the procurement process.
 Request for Quotation (RFQ): This document is sent to potential suppliers to
request pricing, availability, and terms for the required materials. It allows the
procurement team to compare offers from multiple suppliers.
 Purchase Order (PO): Issued by the procurement department to the chosen
supplier, a PO is a legally binding document that details the specific items,
quantities, prices, delivery dates, and terms agreed upon.
 Goods Received Note (GRN): A document created upon receiving the materials,
confirming that the correct items and quantities have been delivered. It is
essential for verifying and recording received goods.
 Invoice: Provided by the supplier, the invoice details the costs for the supplied
materials, often referencing the purchase order. It is essential for payment
processing and financial record-keeping.
 Delivery Note: Accompanies the delivery from the supplier and lists the items
being delivered. It is used by the recipient to confirm that all ordered items have
been received in the correct quantities.

(c)Explain TWO effects of inadequate material management

(4 marks)

 Increased Costs: Poor material management can lead to excess inventory,

unnecessary purchases, or frequent urgent orders, which drive up procurement
and storage costs.
 Production Delays: If materials are not available when needed, it can disrupt the
production process, causing delays in project timelines and reducing productivity.
 Quality Issues: Poorly managed materials may not meet quality standards,
leading to defective products, rework, and potential customer dissatisfaction.
 Wastage and Spoilage: Ineffective tracking and storage can lead to materials
becoming outdated, damaged, or spoiled, resulting in waste and financial losses.
 Lower Employee Morale: When employees constantly face material shortages
or issues, it can create frustration, reduce morale, and impact overall team
efficiency.

(d)List FOUR sources of law in Kenya

(2 marks)

 The Constitution of Kenya – The supreme law that provides the legal
framework for governance.
 Legislation – Acts of Parliament and subsidiary legislation made by authorized bodies.

 Judicial Precedents – Past decisions of higher courts that set binding principles for
future cases.

 Customary Law – Traditional practices recognized by the community, provided they

don’t contradict statutory laws.

 International Law – Treaties and conventions that Kenya has ratified, which are part of
Kenyan law.

 Common Law and Equity – Principles inherited from the British legal system, applicable
where no Kenyan statute exists on the matter.

2. (a)Differentiate between a tort and a crime

(6 marks)

Aspect Tort Crime

Definition A civil wrong against an A wrongdoing against

individual, resulting in society or the state,
legal liability. punishable under criminal
 Aspect Tort Crime

law.

To compensate the victim To punish the offender,

Purpose and provide remedies for prevent future crimes, and
damages or injuries. protect society.

Plaintiff (injured party) vs. Prosecution (representing

Parties
Defendant (person causing the state) vs. Defendant
Involved
harm). (accused criminal).

Legal Civil court, with the victim Criminal court, where the
Proceeding seeking damages or state prosecutes the
s compensation. offender.

Burden of Balance of probabilities Beyond a reasonable doubt

Proof (more likely than not). (higher standard of proof).

Negligence, defamation,
Examples Theft, assault, murder.
trespass.

(b)Explain TWO defences to an action for trespass to land in the law of torts.
(4 marks)

 Consent: If the property owner consents to the entry onto their land, then the
trespass claim may be negated. This consent can be explicit (such as verbal or
written permission) or implied (such as a situation where a person is allowed to
enter for a specific purpose).
 Necessity: This defense applies when the trespasser enters another's land to
prevent greater harm or danger. For example, if someone enters a property to
escape a fire or to save someone’s life, the entry may be justified under the
doctrine of necessity.
 Public Right of Way: Individuals may have the right to enter land if there is a
recognized public right of way. If the trespasser enters a property via a designated
public path or road, this defense can be used to counter the claim of trespass.
 License: Similar to consent, a license grants permission to enter or use someone
else's property. This could be a temporary permission that can be revoked at any
time. If the trespasser had a valid license to enter the property, the owner cannot
claim trespass.
 Statutory Authority: If a person enters land under the authority of a statute or
regulation, this can serve as a defense to a trespass claim. For instance, utility
workers may enter private property to repair lines under statutory provisions that
allow such access.

(c)Define the following torts;

 (i)nuisance;

(ii)defamation
(4 marks)

(i) Nuisance

Nuisance is a tort that involves the unreasonable interference with a person's use and
enjoyment of their property. It can be classified into two categories.

 Private Nuisance: This occurs when a person's use or enjoyment of their land is
harmed by another's actions, such as excessive noise, pollution, or unpleasant
odors. The interference must be substantial and unreasonable, meaning that it
exceeds what is considered acceptable in a given community.
 Public Nuisance: This affects the general public or a community rather than just
one individual. It involves activities that significantly interfere with the public's
rights, such as blocking public roads or contaminating public waterways. Public
authorities typically have the standing to sue for public nuisance.

(ii) Defamation

Defamation is a tort that involves making false statements about an individual that
harm their reputation. It can be categorized into two types:

 Libel: This refers to defamation that occurs in a permanent form, such as written
statements, publications, or online content. Because libel is in a fixed medium, it
is generally considered more harmful than slander.
 Slander: This refers to spoken defamatory statements that are not recorded in a
permanent medium. Slander typically requires proof of special damages unless it
falls into certain categories, such as allegations of a crime or professional
misconduct.

(d)Explain the following forms of land ownership:

(i)freehold

(ii)leasehold

(iii)mortgage
(6 marks)

Freehold ownership refers to owning the land and any structures on it outright and
indefinitely. The owner has complete control over the property, including the right to
sell, lease, or alter it as they see fit. Freehold estates are typically considered the
highest form of property ownership because they are not bound by time; the owner
holds the title for life and can pass it on to heirs.

Leasehold ownership involves renting a property from a landlord (the freeholder) for
a specified period. The leaseholder has the right to use and occupy the property for the
duration of the lease, but they do not own the land. Lease agreements can vary in
length, ranging from a few years to several decades. At the end of the lease term,
ownership of the property reverts to the freeholder unless the lease is renewed.
Leaseholders are typically responsible for maintenance and may have restrictions on
modifications to the property.

A mortgage is not a form of ownership but rather a financial agreement where a

borrower (usually the property buyer) takes a loan from a lender (often a bank) to
purchase real estate. The property itself serves as collateral for the loan. The borrower
makes regular payments over time, and once the mortgage is paid off, they own the
property outright. If the borrower fails to make payments, the lender can initiate
foreclosure proceedings, potentially leading to the loss of the property.

3. (a)Outline FOUR roles of human resource managers

(6 marks)

 Recruitment and Selection (1 mark)

HR managers are responsible for attracting, screening, and selecting qualified
candidates for job vacancies. This includes crafting job descriptions, posting job
ads, conducting interviews, and making hiring decisions.
 Training and Development (1 mark)
They design and implement training programs to enhance employee skills and
knowledge. HR managers also focus on career development initiatives, helping
employees grow within the organization.
 Performance Management (1 mark)
HR managers develop performance appraisal systems to evaluate employee
performance. They facilitate feedback processes and set performance goals,
ensuring alignment with organizational objectives.
 Employee Relations (1 mark)
They act as a bridge between management and employees, addressing workplace
conflicts, grievances, and ensuring a positive work environment. This role
involves fostering communication and promoting employee engagement.
 Compensation and Benefits (1 mark)
HR managers design and manage compensation structures, including salaries,
bonuses, and benefits packages. They ensure that these offerings are competitive
and align with industry standards to attract and retain talent.
 Compliance and Legal Issues (1 mark)
They ensure that the organization complies with labor laws and regulations, such
as workplace safety, anti-discrimination policies, and employee rights. This role
involves staying updated on legal changes and implementing necessary policies.
 Strategic Planning (1 mark)
HR managers contribute to the organization’s strategic goals by aligning HR
practices with business objectives. They analyze workforce trends and develop
strategies to meet future staffing needs, ensuring the organization is prepared for
growth and change.

(b)Explain THREE powers of factory inspectors

(6 marks)
 Entry and Inspection: Factory inspectors have the authority to enter any
workplace or factory at any reasonable time to conduct inspections. This allows
them to assess compliance with safety standards and regulations.
 Examination of Documents: Inspectors can demand to see various records,
including health and safety documentation, employee records, and accident
reports. This helps them verify compliance and investigate any incidents.
 Issuing Notices: They can issue improvement or prohibition notices if they
identify breaches of health and safety regulations. Improvement notices require
specific changes to be made, while prohibition notices can halt work activities
that pose a risk to health or safety.
 Taking Samples and Conducting Tests: Inspectors are empowered to take
samples of materials or substances in the workplace for testing. This is essential
for assessing exposure levels to harmful substances.
 Investigating Accidents and Complaints: Inspectors can investigate workplace
accidents and complaints from employees regarding unsafe conditions. This
involves gathering evidence and determining if any laws were violated.
 Enforcement Action: Factory inspectors have the authority to initiate legal
proceedings against employers or individuals who fail to comply with health and
safety laws. This can include penalties, fines, or other legal actions to ensure
compliance.

(c)Explain THREE functions of trade unions

(6 marks)

 Collective Bargaining: Trade unions negotiate with employers on behalf of their

members to establish favorable working conditions, wages, benefits, and hours. This
process allows workers to have a unified voice, leading to better outcomes than
individual negotiations.

 Representation: Unions represent their members in various forums, including

grievance procedures, disciplinary hearings, and discussions with management.
This ensures that workers' rights are protected and that they have support in
disputes with their employers.
 Advocacy for Workers' Rights: Trade unions advocate for policies and
legislation that protect workers' rights and improve labor conditions. This
includes campaigning for better health and safety regulations, anti-discrimination
laws, and fair labor practices.
 Education and Training: Unions often provide educational programs and
training opportunities to their members. This helps workers improve their skills,
understand their rights, and stay informed about labor laws and workplace issues.
 Support and Solidarity: Trade unions foster a sense of community and
solidarity among workers. They offer support during strikes, layoffs, or other
difficult times, helping members to cope with challenges through mutual aid and
assistance.
 Political Engagement: Many trade unions engage in political activities to
influence labor-related legislation and policies. They may endorse political
candidates, lobby for labor-friendly policies, and mobilize members to participate
in elections, ensuring that workers' interests are represented in government.
 (d)State FOUR methods of motivating employees
(2 marks)

 Recognition and Praise: Acknowledge employees’ achievements and

contributions publicly or privately to boost morale and encourage continued
performance.
 Incentives and Rewards: Offer bonuses, commissions, or other financial
rewards for meeting or exceeding targets to motivate employees to achieve goals.
 Career Development Opportunities: Provide training, mentoring, and pathways
for advancement to help employees grow their skills and advance their careers.
 Flexible Work Arrangements: Allow for remote work, flexible hours, or
compressed workweeks to enhance work-life balance and improve job
satisfaction.
 Empowerment and Autonomy: Give employees more control over their work
and decision-making, fostering a sense of ownership and responsibility.
 Team Building Activities: Organize team-building exercises to strengthen
relationships among colleagues and improve collaboration, which can enhance
motivation.
 Clear Goals and Feedback: Set clear, achievable goals and provide regular
feedback to help employees understand their progress and areas for improvement.

5.The following trial balance was extracted from books of accounts of Panta
Limited as at 31 December 2015:

Share capital ksh.100 ordinary shares

300,000,000

Share premium
100,000,000

10% lone notes

Non current assets

Freehold land 280,000,000

Buildings 300,000,000

Plants and Equipment 80,000,000

Accumulated depreciation(1 January 2015)

Buildings
40,000,000

Plants and Equipment

32,000,000
Motor vehicle
40,000,000

Sales
1,053,000,000

Trade receivable and trade payable 71,200,000

41,400,000

Bad debt(1 January 2015) 3,800,000

Provision for bad and doubtful (1 January 2015)

3,200,000

Salaries and wages 92,400,000

Rent and rates 14,200,000

10% loan note interest 30,000,000

Revenue reserves (1 January 2015)

150,200,000

Directors salaries 72,000,000

Motor vehicle running expenses 33,600,000

General Expenses 2,400,000

Inventory (1 January 2015) 149,000,000

Balance at Bank
3,600,000

Additional information

(I) Share capital is divided into 3,000,000 ordinary shares of ksh.100 each,all of
which were issued and fully paid.

(II) Inventory as at 31 December 2015 was valued at ksh.162,400,000(closing

stock)

(III) The provision for doubtful debts is to be adjusted to 3,600,000.

(IV) Motor vehicle running expenses due but unpaid as at 31 December 2015
were ksh.4,200,000.

(V) Rent and rates paid in advance as at 31 December 2015 amounted to

ksh.3,000,000.

(VI) Depreciation is charged as follows:

 -plant and equipment 10% per annum on cost.

-motor vehicle 20% per annum on cost.

-building to be depreciated by ksh.800,000.

-Directors have proposed divident of ksh.10 per share for the year ending.

Prepare

(a) Income statement for the year ended 31 December 2015

(10 marks)

(b)Balance sheet at 31 December 2015

(10 marks)

(a) Income Statement for the Year Ended 31

December 2015

Step 1: Calculate Revenue

 Sales: Ksh 1,053,000,000

Step 2: Calculate Cost of Goods Sold (COGS)

 Opening Inventory: Ksh 149,000,000

 Closing Inventory: Ksh 162,400,000

COGS=Opening Inventory+Purchases−Closing Inventory\

text{COGS} = \text{Opening Inventory} + \text{Purchases} - \
text{Closing
Inventory}COGS=Opening Inventory+Purchases−Closing Inventor
y

Since no purchases are mentioned, we can assume COGS to be the difference in

inventory:

 COGS = Opening Inventory - Closing Inventory = Ksh 149,000,000 - Ksh 162,400,000

= Ksh -13,400,000 (This indicates a loss due to inventory increase)

Step 3: Calculate Operating Expenses

 Salaries and Wages: Ksh 92,400,000

 Rent and Rates: Ksh 14,200,000 - Ksh 3,000,000 (prepaid) = Ksh 11,200,000
 Directors' Salaries: Ksh 72,000,000
 Motor Vehicle Running Expenses: Ksh 33,600,000 + Ksh 4,200,000 (due but unpaid) =
Ksh 37,800,000
 General Expenses: Ksh 2,400,000
  Total Depreciation:

o Buildings: Ksh 800,000

o Plant and Equipment: Ksh 80,000,000 * 10% = Ksh 8,000,000
o Motor Vehicle: Ksh 40,000,000 * 20% = Ksh 8,000,000

 Total Depreciation = Ksh 800,000 + Ksh 8,000,000 + Ksh 8,000,000 = Ksh 16,800,000

Total Operating Expenses:

Total Operating Expenses=92,400,000+11,200,000+72,000,000+3

7,800,000+2,400,000+16,800,000=Ksh232,600,000\text{Total
Operating Expenses} = 92,400,000 + 11,200,000 + 72,000,000 +
37,800,000 + 2,400,000 + 16,800,000 = Ksh
232,600,000Total Operating Expenses=92,400,000+11,200,000+7
2,000,000+37,800,000+2,400,000+16,800,000=Ksh232,600,000

Step 4: Calculate Interest Expense

 Loan Note Interest: Ksh 30,000,000

Step 5: Calculate Net Profit Before Tax

Net Profit Before Tax=Sales−COGS−Operating Expenses−Interest

Expense\text{Net Profit Before Tax} = \text{Sales} - \text{COGS}
- \text{Operating Expenses} - \text{Interest
Expense}Net Profit Before Tax=Sales−COGS−Operating Expenses
−Interest Expense Net Profit Before Tax=Ksh1,053,000,000−
(−13,400,000)−Ksh232,600,000−Ksh30,000,000\text{Net Profit
Before Tax} = Ksh 1,053,000,000 - (-13,400,000) - Ksh 232,600,000
- Ksh 30,000,000Net Profit Before Tax=Ksh1,053,000,000−
(−13,400,000)−Ksh232,600,000−Ksh30,000,000
=Ksh1,053,000,000+Ksh13,400,000−Ksh232,600,000−Ksh30,000,
000= Ksh 1,053,000,000 + Ksh 13,400,000 - Ksh 232,600,000 - Ksh
30,000,000=Ksh1,053,000,000+Ksh13,400,000−Ksh232,600,000−
Ksh30,000,000 =Ksh803,800,000= Ksh
803,800,000=Ksh803,800,000

Step 6: Tax Calculation

 Assuming a tax rate of 30% (not mentioned in the question, this is a common
assumption):

Tax=Ksh803,800,000∗30\text{Tax} = Ksh 803,800,000 * 30% =

Ksh 241,140,000Tax=Ksh803,800,000∗30
Step 7: Calculate Net Profit After Tax

Net Profit After Tax=Net Profit Before Tax−Tax\text{Net Profit

After Tax} = \text{Net Profit Before Tax} - \
text{Tax}Net Profit After Tax=Net Profit Before Tax−Tax
Net Profit After Tax=Ksh803,800,000−Ksh241,140,000=Ksh562,66
0,000\text{Net Profit After Tax} = Ksh 803,800,000 - Ksh
241,140,000 = Ksh
562,660,000Net Profit After Tax=Ksh803,800,000−Ksh241,140,000
=Ksh562,660,000

Income Statement

Panta Limited

Income Statement for the Year Ended 31 December 2015

Sales Ksh 1,053,000,000

Less: COGS Ksh -13,400,000

-------------------------------------------

Gross Profit Ksh 1,066,400,000

Less: Operating Expenses

Salaries and Wages Ksh 92,400,000

Rent and Rates Ksh 11,200,000

Directors' Salaries Ksh 72,000,000

Motor Vehicle Running Expenses Ksh 37,800,000

General Expenses Ksh 2,400,000

Depreciation Ksh 16,800,000

-------------------------------------------

Total Operating Expenses Ksh 232,600,000

-------------------------------------------

Operating Profit Ksh 833,800,000

Less: Interest Expense Ksh 30,000,000

-------------------------------------------

Net Profit Before Tax Ksh 803,800,000

Less: Tax (30%) Ksh 241,140,000

-------------------------------------------

Net Profit After Tax Ksh 562,660,000

(b) Balance Sheet at 31 December 2015

Step 1: Assets

 Non-Current Assets

o Freehold Land: Ksh 280,000,000

o Buildings: Ksh 300,000,000 - Ksh 40,000,000 (accumulated depreciation) -
Ksh 800,000 (current year depreciation) = Ksh 259,200,000
o Plant and Equipment: Ksh 80,000,000 - Ksh 32,000,000 (accumulated
depreciation) - Ksh 8,000,000 (current year depreciation) = Ksh 40,000,000
o Motor Vehicle: Ksh 40,000,000 - Ksh 40,000,000 (accumulated depreciation)
- Ksh 8,000,000 (current year depreciation) = Ksh -8,000,000 (indicating that
it is fully depreciated)

 Total Non-Current Assets:

Total Non-Current Assets=Ksh280,000,000+Ksh259,200,000+Ksh4

0,000,000+Ksh0=Ksh579,200,000\text{Total Non-Current Assets}
= Ksh 280,000,000 + Ksh 259,200,000 + Ksh 40,000,000 + Ksh 0
= Ksh 579,200,000Total Non-
Current Assets=Ksh280,000,000+Ksh259,200,000+Ksh40,000,000
+Ksh0=Ksh579,200,000

 Current Assets

o Trade Receivables: Ksh 71,200,000

o Inventory (Closing Stock): Ksh 162,400,000
o Bank Balance: Ksh 3,600,000

 Total Current Assets:

Total Current Assets=Ksh71,200,000+Ksh162,400,000+Ksh3,600,
000=Ksh237,200,000\text{Total Current Assets} = Ksh 71,200,000
+ Ksh 162,400,000 + Ksh 3,600,000 = Ksh
237,200,000Total Current Assets=Ksh71,200,000+Ksh162,400,000
+Ksh3,600,000=Ksh237,200,000

Total Assets:

Total Assets=Ksh579,200,000+Ksh237,200,000=Ksh816,400,000\
text{Total Assets} = Ksh 579,200,000 + Ksh 237,200,000 = Ksh
816,400,000Total Assets=Ksh579,200,000+Ksh237,200,000=Ksh8
16,400,000

Step 2: Liabilities

 Current Liabilities

o Trade Payables: Ksh 41,400,000

o Motor Vehicle Running Expenses (unpaid): Ksh 4,200,000
o Loan Note Interest: Ksh 30,000,000

 Total Current Liabilities:

Total Current Liabilities=Ksh41,400,000+Ksh4,200,000+Ksh30,00

0,000=Ksh75,600,000\text{Total Current Liabilities} = Ksh
41,400,000 + Ksh 4,200,000 + Ksh 30,000,000 = Ksh
75,600,000Total Current Liabilities=Ksh41,400,000+Ksh4,200,000
+Ksh30,000,000=Ksh75,600,000

 Non-Current Liabilities

o Loan Notes: Ksh 0 (not specified, assuming none mentioned)

Step 3: Equity

 Share Capital: Ksh 300,000,000

 Share Premium: Ksh 100,000,000
 Revenue Reserves (Retained Earnings): Ksh 150,200,000 + Ksh 562,660,000 (net
profit after tax) - Ksh 30,000,000 (dividend proposed) = Ksh 682,860,000

Total Liabilities and Equity:

Total Liabilities and Equity=Ksh75,600,000+Ksh0+Ksh300,000,00

0+Ksh100,000,000+Ksh682,860,000=Ksh1,158,460,000\text{Total
Liabilities and Equity} = Ksh 75,600,000 + Ksh 0 + Ksh
300,000,000 + Ksh 100,000,000 + Ksh 682,860,000 = Ksh
1,158,460,000Total Liabilities and Equity=Ksh75,600,000+Ksh0+K
sh300,000,000+Ksh100,000,000+Ksh682,860,000=Ksh1,158,460,0
00

Balance Sheet

plaintext

Copy code

Panta Limited

Balance Sheet as at 31 December 2015

Assets

Non-Current Assets

Freehold Land Ksh 280,000,000

Buildings Ksh 259,200,000

Plant and Equipment Ksh 40,000,000

Motor Vehicle Ksh 0

-------------------------------------------

Total Non-Current Assets Ksh 579,200,000

Current Assets

Trade Receivables Ksh 71,200,000

Inventory (Closing Stock) Ksh 162,400,000

Balance at Bank Ksh 3,600,000

-------------------------------------------

Total Current Assets Ksh 237,200,000

-------------------------------------------

Total Assets Ksh 816,400,000

Liabilities

Current Liabilities

Trade Payables Ksh 41,400,000

Motor Vehicle Running Expenses (unpaid) Ksh 4,200,000

Loan Note Interest Ksh 30,000,000

-------------------------------------------

Total Current Liabilities Ksh 75,600,000

窗体顶端

窗体底端