WEXITO CONSULTING GROUP

P.O.Box 10378 Tel:+(255)784397398/+(255)784676646 Fax + (255)736608398

Balewa Rd-MUCCoBs Mwanza-Tanzania

IAS 1: REVIEW QUESTIONS

QUESTION ONE

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QUESTION TWO

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QUESTION THREE

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QUESTION FOUR (NBAA – MODIFIED)

a) IAS 1 requires assets and liabilities to be classified into current and non-current.
i) With reference to IAS 1-preparation of financial statements, differentiate between current
assets and non-current assets. (3 marks)
ii) Briefly explain, why do you think such classification is important (2 marks)

b) Kalambo Company Ltd. a retailing company, has an authorized share capital of Tshs. 700,000
Ordinary shares of Tshs. 1,000 each. The following trial balance was extracted from the books of
account as at 31st December 2014.
Dr Cr
Particulars Tshs. Tshs.
'000,000' '000,000'
Issued share capital 560
Share premium account 140
Profit and loss account 180
10% debentures 100
Furniture and fittings at cost 400
Depreciation to Is' January 2014 200
Cash balance 118
Trade debtors 500
Trade creditors 120
s
Stock at I 'January 2014 400
Hire charges (distribution, vehicles, etc) 680
Purchases 1,000
Administrative expenses 300
Deferred taxation 80
Distribution costs 200
Accrued expenses 50
Auditors' remuneration 40
Interim dividend (paid on Is' July 2014) 14
Trade investments at cost (market value Tshs. 140
170,000,000)
Debenture interest (gross) 10
Dividends received (on 1SI December 2014) 30
Turnover 2,400
Prepaid expenses 58
3,860 3,860

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 You are also given the following information

i) Turnover excludes value added tax

ii) Stock at 31st December 2014 was valued at Tshs. 600,000,000

iii) Depreciation of Tshs. 80,000,000 is to be charged on the furniture and fittings for the year to
31st December 2014.

iv) Administration includes Director's emoluments of Tshs. 110,000,000.

v) The corporation tax payable (based on the profits for the year to 31s1 December 2014 at a
rate of 30%) is estimated to amount to Tshs. 100,000,000.

vi) The company proposes to pay a final ordinary dividend of 10 percent.

REQUIRED:

Prepare Statement of Comprehensive Income and Statement of Financial Position for publication
for the year ended 31s1 December 2014, together with relevant notes. (20 marks)

QUESTION FIVE

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