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BMIS – L1 – SA – Q1.5 – The business organisation and its stakeholders
Checks if a limited company is a legal person.
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- 20 Marks
FA – L1 – Q73 – Preparation of limited liability company financial statements
Prepare Kamisa Health Limited's statement of profit or loss and financial position for 31 March 20X9 per IAS 1, using trial balance and additional info.
Question
The following trial balance has been extracted from the books of account of Kamisa Health Limited, a limited liability company, at 31 March 20X9.
| Description | ZMW ‘000 (DR) | ZMW ‘000 (CR) |
|---|---|---|
| Administrative expenses | 210 | |
| Share capital (ordinary shares of ZMW 1 fully paid) | 600 | |
| Trade receivables | 470 | |
| Bank overdraft | 80 | |
| Income tax (overprovision in 20X8) | 25 | |
| Retirement benefit liability | 180 | |
| Distribution costs | 420 | |
| Non-current asset investments | 560 | |
| Investment income | 75 | |
| Plant and equipment (At cost) | 750 | |
| Accumulated depreciation (at 31 March 20X9) | 220 | |
| Accumulated profit (at 1 April 20X8) | 240 | |
| Purchases | 960 | |
| Inventories (at 1 April 20X8) | 140 | |
| Trade payables | 260 | |
| Revenue | 1,950 | |
| Dividend paid | 120 | |
| Total | 3,630 | 3,630 |
Additional Information
(1) Inventories at 31 March 20X9 were valued at ZMW 150,000.
(2) The following items are already included in the balances listed in the above trial balance.
(3) The income tax expense based on the profit on ordinary activities is estimated to be ZMW 54,000.
(4) The retirement benefit liability is to be increased by ZMW 16,000. The increase should be charged to administrative expenses. No retirement benefits are expected to be paid for the foreseeable future.
Required:
Prepare the company’s statement of profit or loss for the year to 31 March 20X9 and a statement of financial position at that date in accordance with IAS 1 Presentation of Financial Statements.
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