QUESTION 1

The following information has been extracted from the books of Allied Components Ltd for the
year ended 31December 2010
Allied Components Ltd, Trial Balance as at 31 December !1!
"!!! "!!!
!ss"ed and paid#"p capital
$rdinary shares 1 000
%& 'reference shares 1 000
(hare premi"m acco"nt 100
'rofit and loss balance at 1 )an"ary 2010 *
'remises +at cost, 1 %00
-."ipment/ 0achinery +at cost, 1*0
0otor 2ehicles +at cost, 3*0
!n2estments 100
'ro2ision for depreciation at 1 )an"ary 2010
'remises 20
-."ipment/ 0achinery 130
0otor 2ehicles 110
Debtors/ Creditors 2%0 *0
4ank and cash balances 325
4ank loan +2020, 123
'"rchases/ (ales 1 221 3 *33
6et"rns 33 21
(tock at 1 )an"ary 2010 %*
(ales and distrib"tion costs
(ales salaries %*
7areho"se costs 1*0
Ad2ertising/ '"blicity 2*0
0otor expenses 1*0
Administration expenses
$ffice salaries %0
8eneral o2erheads 2**
6ates/ !ns"rance 1*
9eat and Light 23
!nterest paid 10
Di2idends recei2ed 10
Disco"nts 12 13
6eser2es 300
1 *31 1 *31
Ot#er in$ormation as on 31 December !1!%
1: (tock is 2al"ed at ;1* 000:
2, Depreciation charges for the year
-."ipment/ 0achinery ;230 000:
0otor 2ehicles ;300 000:
3, ;2 000 of debtors is deemed to be irreco2erable and a pro2ision for do"btf"l debts
of 1& m"st be created:
3, ;1* 000 of motor expenses is owing whilst ;2* 000 of general o2erhead has been
paid in ad2ance:
*, The board of directors recommended that the preference shareholders be paid
their di2idend and that 10& sho"ld be pro2ided for ordinary share di2idends:
1, A s"m of ;200 000 is to be set aside for corporation tax and ;300 000 is to be
transferred to reser2es
&e'(ired%
a, A (tatement of Comprehensi2e !ncome for Allied Components Ltd for the year ended
31 December 2010 and/
b, A (tatement of Comprehensi2e !ncome/
b, A (tatement of <inancial 'osition for Allied Components as at that date: