problem1. You have been provided with the following trial balance as at 31 May 2008 for limited liability Company called Macdillon.
The following notes are appropriate:-
i. Inventory at 31st May 2008 was valued at Rs 800,000.
ii. Marketing and advertising expenditures include Rs 6,000 paid in advance for a marketing campaign which will begin in June 2008.
iii. There are wages outstanding of Rs 10,000 for the year ended 31st May 2008.
iv. A customer ceased trading owing the company Rs 38,000; the debt is not expected to be recovered.
v. An allowance for doubtful debts is to be provided amounting to 5% of trade receivables.
vi. Depreciation is to be provided for as follows:-
(a) Buildings at 5% per annum on their original cost.
(b) Motor vehicles at 25% per annum of their written-down value.
(c) Plant and equipment at 20% per annum of their written-down value.
vii. No dividends have been paid or declared.
viii. Income tax of Rs 250,000 is to be provided for the year.
ix. The audit fees are estimated to be Rs 20,000.
Make the following financial statements for year ended 31st May 2008 for Macdillon in accordance with IAS 1 Presentation of Financial Statements:
i. An Income Statement
ii. A Statement of Financial Position ( Balance Sheet)