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1. The following Trial Balance as at 31^st Dec 2004 belongs to Kisui Ltd specialist wholesalers.

Notes:

1. Inventory at 31.12.2004: $412,780 consists of goods for resale.
2. Plant and machinery is apportioned: distribute 60%, administrative 40%.
3. Accrued auditors remuneration $71,000.
4. Depreciate plant and machinery: 20% on cost.
5. Of the motor hire, $55,000 if for distributive purposes.
6. Corporation tax on profits, at rate of 35% is estimated at $238,500 an is payable on 1.10.2005.
7. Pension contributions for the staff amounted to $42,550 and social security contributions to $80,120. These figures include in wages and salaries in the trial balance. No employee carried over $30,000.
8. Plant of $75,000 been bought during the year.
9. Directors remuneration has been as follows:

In addition, each of them drew $2,000 as directors fees. Pensions are the personal responsibility of directors.

Required:

Subject to the limits of the information given to you, draw up an income statement for the year ending 31. December 2004, and a balance sheet as at that date. (15 marks)

DR CR 1,000,000 120,000 48,000 139,750 336,720 5,090,370 2,475,910 121,220 136,200 6,340 43,790 410,240 Ordinary share capital $ 1 share Share premium General reserve Retained profits as at 31/12/2003 Inventory 31/12/2003 Revenue Purchases Retum outwards Retum inwards Camiage inwards Carriage outwards Warehouse wages (average number of workers 59) Sales people's salaries (average number of workers 21) Administrative wages and salaries Plant and machinery Motor vehicle hire Provision for depreciation: plant and machinery General depreciation expenses Directors' remuneration Ordinary dividend Rents receivable Trade accounts receivable Cash at bank and in hand Trade accounts payable (payable before 31.3.2005) Bills of exchange payable (payable 28.2. 2005) 305,110 277,190 610,000 84,770 216,290 47,990 195,140 375,000 37,150 1,650,570 179,250 304,570 57,000 7,134,220 7,134,350 Kshs. Chaiman 46,640 Managing director 51,500 Finance director 46,000 Marketing Director 43,000 187,140 DR CR 1,000,000 120,000 48,000 139,750 336,720 5,090,370 2,475,910 121,220 136,200 6,340 43,790 410,240 Ordinary share capital $ 1 share Share premium General reserve Retained profits as at 31/12/2003 Inventory 31/12/2003 Revenue Purchases Retum outwards Retum inwards Camiage inwards Carriage outwards Warehouse wages (average number of workers 59) Sales people's salaries (average number of workers 21) Administrative wages and salaries Plant and machinery Motor vehicle hire Provision for depreciation: plant and machinery General depreciation expenses Directors' remuneration Ordinary dividend Rents receivable Trade accounts receivable Cash at bank and in hand Trade accounts payable (payable before 31.3.2005) Bills of exchange payable (payable 28.2. 2005) 305,110 277,190 610,000 84,770 216,290 47,990 195,140 375,000 37,150 1,650,570 179,250 304,570 57,000 7,134,220 7,134,350 Kshs. Chaiman 46,640 Managing director 51,500 Finance director 46,000 Marketing Director 43,000 187,140

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