QUESTIONS 699,992 59,684 78,840 12,580 95,834 11,492 1,400 13,000 1,600 8,615 8,500 1,040 11, , ,440 24,800 11, ,000 30,000 61,610

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1 NUMBER ONE QUESTIONS HDL Ltd, which manufactures footwear, makes up its accounts to 31 March each year. The company has an authorized share capital of Sh. 6,, divided into 15,, 6.5% preference shares of Sh. 2 each and 3,, ordinary shares of Sh. 1 each. The following trial balance was extracted as at 31 March 22. Trial balance as at March 22 Cost of Sales Motor vehicle expenses Selling and distribution costs Depreciation of motor vehicles for the year Wages and salaries Administration expenses Audit fees Sales Discounts received Investment income trade investments others Preference dividends paid Debenture interest Corporation tax paid installment Compensation to director for loss of office Depreciation of fixtures for the year) 8% debentures Cash in hand Ordinary share capital issued and paidup) Bank balance Preference share capital issued and paidup) Inventory 31 March 22) Debtors/creditors Deferred tax Motor vehicles net book value) Provision for doubtful debts Fixtures and fittings net book value) Profit and loss account 1 April 21) General reserves Share premium Freehold land and building cost) Investments trade market value Sh.35,,) Others market value Sh.62,,) 699,992 59,684 78,84 12,58 95,834 11,492 1,4 13, 1,6 8,615 8,5 1,4 3, 11,745 24, ,44 24,8 11,3 27, 3, 61,61 1,945,64 Sh 1,191, ,72 1,68 2, 2, 2, 12, 3, 14,4 11,848 6, 4, 1,945,64 Sh

2 Additional information: 1. Wages and salaries include salary paid to Managing Director of Sh. 3,, and salary paid to Sales Director of Sh. 25,,. 2. Provision is due to be made for directors fees Sh. 15,,. 3. Provision for doubtful debts is to be adjusted to Sh. 16,822,. 4. Timing differences of Sh. 4,, are expected to reverse in the near future. 5. The directors recommended an ordinary dividend of Sh.1.35 per share. 6. Corporation tax for the year is Sh.11; 82,.The corporation tax rate is 3%on adjusted profit. 7. Land and buildings were professionally valued at Sh.3,, at the year end. The directors wish to incorporate the valued amount in the financial statements. 8. Information about other fixed asset is as follows: Motor vehicles Sh Fixtures & fittings Sh Cost (including additions during the year) 51,2, 2,8, Additions during the year 2,24, 1,6, Cost of assets disposed of during the year (No entry made 2,8, 1,455, yet) Accumulated depreciation of asset disposed of during the 2,15, 95, year Proceeds of asset disposed of (including in sales in the trial balance) 715, 5, Required (a) Income statement for the year ended 31 March 22 (b) Balance sheet as at 31 March 22 (13 marks) (12 marks) (Total: 25 marks) (The above two statement should be presented in the form suitable for publication in accordance with the requirements of International Accounting Standards.IASs)

3 NUMBER TWO Kariuki, Mamba and Richards have carried on partnership for several years, sharing profits and losses equally after allowing for annual salaries as follows: Kariuki Mamba Richards Sh. 1,5, 9, 9, They decided to convert the partnership into limited company; Kamari Ltd.as at 3 November 21, the following terms: 1. Goodwill to be valued at Sh.13,5, 2. Other assets to be valued as follows:

4 Freehold property Furniture and fittings Motor Vehicles Shs. 27,, 2,4, 6,, 3. Each partner is becoming director of the company at the same salary as that previously allowed in the partnership. 1. Mamba s loan is to converted into share capital at par. 5. Shares are to be issued to each partner at parin respect of the amounts of their equity holdings at 3 November The financial year of partnership ends on 3 May.No action has been taken to carryout the terms of conversion of partnership into the limited company in the books of accounts. On 31 May 22, the trial balance showed the following position: Capital accounts at 1 June 21 Kariuki Mamba Richards Stock 31 May 22 Cost of sales Sales Sh Sh 14,4 36, 18, 9, 6, 6, Administrative expenses Selling expenses Accounting &Audit expense Incorporation expenses Drawings: Kariuki Mamba Richards Freehold property at cost Furniture and fittings at cost Accumulated depreciation Debtors and Creditors Prepayments and Accruals Loan from Mamba(1% interest per annum) Motor Vehicles at cost Accumulated depreciation Bank balance 6, 3, 1,2 6 1, ,8 6, 9, 6 12, 117,9 3,6 7,2 3 9, 3,6 1,2 117,9 Additional information; i. The sales during the second half of the year were 6% of the total sales though the gross profit percentage remained the same throughout the year.

5 ii. The selling expenses were proportional to the sales for each period. All the expenses were incurred evenly throughout the year. iii. Salary drawings were made evenly. Drawing made after incorporation were to be treated as director s salaries. iv. There were no purchases or sales of fixed assets during the year.depreciation is to be provided on cost as follows; Furniture and fittings Motor vehicles 1% per annum 2% per annum v. No dividends are paid or proposed but it is decided to write off the incorporation expenses and also Sh.3,5, of the goodwill. Required (a) Trading and profit and loss account for Kamari Ltd. for the six months ended 31 May 22 (8 marks) (b) Calculation showing the value of shares to be issued to each partner. (4 marks) (c) Balance sheet as at 31 May 22. (8 marks) (Total: 2 marks) NUMBER THREE On April 21, Dotty Manufacturers Ltd.opened a branch in Cumala, a foreign country whose currency is the cuma (cm),to sell an assortment of dolls.the branch manager was authorized to purchase local dolls for resale, but it was expected that the major proportion of the sales would be the dolls supplied by the head office in Kenya. On 31 March 22, the trial balance of the head office and branch were as follows; Share capital Reserves Profit and loss a/c Premises at cost Fixtures and fittings Provision for dep. fixtures & fittings Stock 1 April 21 Debtors Creditors Bank balance Cash in hand Sales Purchases Goods sent to branch Goods received from head office Branch current account Head office current account Branch stock adjustment account Trial balance as at 31 March 22 Head Office Branch Ksh Ksh Ksh Ksh 5,, 2,, 12,, 45,, 16,, 94,5, 14,5, 17,55, 9,2, 98, 65,63, 15,9, 6,4, 4,5, 11,9, 13,52, 3,38, 35,1, 27,84, 8,598, 48,87, 156,5, 12,336, 277,233, 129,35,

6 Administration expenses Distribution expenses 19,25, 7,33, 21,89, 21,89, 28,514,6 19,815,4 418,919, 418,919, Additional information 1. Stock on hand as at 31 March 22 was Stock on hand as at 31 March 22 was Head office Branch; From head office From local purchases Ksh.28,5, Zm.12,, Zm.9,775, 2. Goods were invoiced by head office to branch at cost plus 23%. The branch sold the goods at invoiced price plus 5%. Goods sent to branch from head office were converted at affixed rate of 1 cumas to 1 Ksh. 3. On 31 March 22,goods in transit from head office to branch were at an invoiced value of Ksh.1,25, 4. A remittance of Cm 5,8, from branch to head office was in transit n 31 march 22.The remittance was converted at Cm.12.5 to Ksh.1 5. The fixtures and fittings were acquired when the exchange rate was Cm 1.5 to Ksh.1 on 1 July Depreciation of the head office and branch fixtures and fittings is to be provided at the rare of 1% per annum on cost. A full year s depreciation should be provided branch fixtures and fittinds. 7. The branch manager was to be allowed a commission of 2% on the sales of dolls supplied by the head office. 8. Rates of exchange at other dates were; 1 June March 22 Average for the year Date of purchase of closing stock Cumus to to to to Ksh Required (a). Trading, profit and loss account in columar form for the head office, the branch and the combined business for the year ended 31 March 22. (12 marks) (b). Balance sheet of the office, branch and the combined business as at 31 March 22 (8 marks) (Total: 2 marks) (Use the temporal method to translate branch balances into Kenya shillings)

7 NUMBER FOUR On 1 April 21 Pega Ltd.acquired 4,5, ordinary shares of Ksh.2 par value in Menga Ltd at a cost of Ksh.152,,.Further, on 1 July 21 Mega Ltd acquired 15,, ordinary shares of Ksh 2 par value in Lera Ltd at a cost of Ksh.716, 6,.Directors were appointed to the boards of both companies by Pega Ltd so as to take an active part in their management. Given below is the information extracted from the books of the companies as at 31 March 22.

8 Freehold property at cost Plant and machinery at cost Stock Debtors Amount due from Mega Ltd Investments Bank balances Balance sheet as at 31 March 22 Pega Menga Lera Sh. Sh. Sh. 72, 2, 1,375, 45, 35, 38, 218, 36,6 374,8, 185, 125, 48, 868 9, 4, 3,717,8 862, 1,123,6 Share capital Share premium Capital reserve Retained profit (as at 31 March 22) 1,, 2, 3, 786 2,286, 3, 24, 218, 542, 4, 56, 288, 744, Creditors Amount due to Lera Ltd. Accumulated depreciation plant and machinery Taxation Bank balance 59, 36, 521,8 19, 94, 3,717,8 11, 12, 9, 862, 152, 124,6 13, 1,123,6 Additional information is given as follows 1. Profit for the year ended 31 March 22 after tax and before dividends were as follows; Pega Ltd Menga Ltd Lera Ltd Sh 252,, 12,, 128,, These profits are included in the retained profits. 2. No interim dividends were paid in the year but final proposed dividends are as follows; Pega Ltd Menga Ltd Lera Ltd 2% 1% 1% 3. Profits accrued uniformly throughout the year

9 4. Included in the stock of Pega Ltd. were goods purchased from Lera Ltd. at Sh.4,,.Tera had made profits of 25% on cost of the goods. 5. A Remittance of Sh 12,, from Mega ltd to Lera Ltd at the end of financial year was received in April On1 April 21 plant and machinery of Menga Ltd was revalued upwards by Sh 24,, and the revaluation was not incorporated in the books.plant and machinery is depreciated at the rate of 1% per annum based on cost. 7. Goodwill or premium on consolidation is amortized on a straight line basis over five years. Required Consolidated balance sheet of Pega Ltd and its subsidiary as at 31 March 22(2 marks) NUMBER FIVE The parents of Hari, Ted and Ken died in March Friends and well wishers organized a fundraising in May 1998 which raised Sh. 3,96,. This money was to cater for the welfare of the three orphans. Mr. Mbaoni, who was appointed the trustee, invested this amount as follows. 9,6 ordinary shares of Sh. 1 per value in Kimbo Ltd. 12,6 ordinary shares of Sh. 1 per value in Dima Ltd. 13,2 ordinary shares of Sh. 1 per value in Kewa Ltd. Sh 864, 1,512, 1,584, 3,96, Mr Mbaoni also established an accumulation and maintenance trust to hold these investments on behalf of the children. The trust had a wide investment clause. The accounts were to be made to 3 April each year. When a beneficiary reached the age of 21 years, Mr. Mbaoni would transfer the share of the fund due to him/her. Hari turned 21 years on 3 April 22. The balances on the accumulation fund for Hari, Ted and Ken and Ken as at 1 March 21 were SH. 414,, Sh. 27,9 and Sh. 69,3 respectively. To that date, Mr. Mbaoni had used accumulated income to purchase 5,775 ordinary shares of Sh. 1 per value in Kewa Ltd. In the year to 3 April 22, Sh. 445,5 was received from capital investments and Sh. 124,74 from accumulation investments. Maintenance payments were made as follows: Hari Sh. 154, Ted Sh. 162, Ken Sh. 188, On 3 April 22, the market value of the shares in the companies, all listed at Kambani stock Exchange (NSE) were as follows:

10 Kimbo Dima Kewa Sh. 12 per share Sh. 16 per share Sh. 14 per share Hari was to receive 1, shares of Sh. 1 per value in Dima Ltd. and the balance due to him on capital would be made up of the shares in Kimbo Ltd. Out of the accumulation assets, Hari was to receive Sh. 64,444 in cash and the balance in shares in the Kewa Ltd. Required: (a). The beneficiaries and accumulation accounts for the period ended 3 April 22. (8 marks) (b). The distribution statements for the capital and accumulation assets as at 3 April 22. (7 marks) (Total: 15 marks) NUMBER ONE (a) ANSWERS HDL Ltd Income statement for the year ended 31 March 23 Turnover (W1) Cost of sales Gross profit Other Incomes : Discount received Profit on disposal Investment income Selling and distribution expenses Administrative expenses Finance costs Profit before tax Income tax expense: Current Deferred Profit for the period Sh ,68 176,14 245,688 1,6 11,82 (1,8) Sh. 1,19,694 (699,922) 49,657 3,57 494,164 (423,392) 7,772 (1,2) 6,752 Bal b/f Prior adjustment Restated HDL Ltd STATEMENT OF CHANGES IN EQUITY AS AT Ordinary share capital Sh. Preference share capital Sh. Share premium Sh. General reserve Sh. F.A Rev. Reserve Sh. Retained earnings Sh. 2, 2, 2, 2, 4, 4, 6, 6, 3, 11,848 11,848 Total Sh. 61,848 61,848 3,

11 Rev. gain on NCA Rev. gain on investment Rev. gain on foreign Net profit: year Dividends: Interim 39 6,752 (13,) 39 6,752 (13,) Bal b/d 2, 2, 4, 6, 3,39 158,6 68,899

12 (b) HDL Ltd Balance sheet as at 31 March 22 Non Current Assets Plant, property and equipment Investments Other Current Assets Stock Debtors (336,44 16,822) Trade investments Cash and bank (11, ,) FINANCED BY: Authorised share capital 15m shares 6.5% Sh.2 5m share Sh.1 Issued and fully paid 1m 6.5% preference Sh.2 2m Ordinary Sh.1 Reserves Share premium Revaluation reserve General reserve Retained profit Shareholders funds Non current liabilities 8% debentures Deferred tax Current liabilities Trade creditors Tax payable (11,82 8,615) Accrued directors fee Sh. 24, ,618 3, 14,745 4, 3,39 6, 158,6 2, 1,2 Sh. 334, , , 3, 6, 2, 2, 4, 13,39 158,6 688,99 21, , 3,25 15, 255,25 TOTAL EQUITY AND LIABILITIES Workings 1. Turnover Sh. As per trial balance Less proceeds and disposals 1,191,864 (1,215) 1,19, Selling and distribution costs

13 As per TB Motor vehicle expenses Wages Depreciation: Motor vehicle 3. Administrative expenses Wages and salaries As per TB Audit fees Depreciation: fixtures Compensation of director for loss of office Provision for doubtful debts (16,822 14,4) Director s fee 78,84 59,864 25, 12,58 176,14 7,834 11,492 1,4 1,4 8,5 2,422 15, 245, Profit on assets disposed Cost Acc. Dep. NBV Proceeds Profit & Loss Motor vehicles 2,8 2, Fixtures & Fittings 1, ,5 Total 4,255 3,55 1,2 1,215 Profit U Loss Bal c/d (3% x 4,) DEFERRED TAX A/C Sh. Sh. 1,8 1,2 Bal b/d 3, 3, 3, Notes to the accounts Note 1 Accounting policies These financial statements have been prepared under the historical cost basis of accounting which is modified to accommodate the revaluation of certain properties and in accordance with the applicable IFRSs. Property plant and equipment is shown at cost or revalued amount less the total accumultaed depreciation, which is based on the estimated useful life of the assets. Inventory has been stated at the lower of cost and net relisable value. Note 2 Profit before tax The profit before tax has been arrived at after charging the following expenses

14 Directors fee Compensation to director for loss of office Depreciation Auditors fee Staff costs Sh. 25, 8,5 13,65 1,4 4,834 Note 3 Taxation Corporation tax is based on the adjusted profits for tax purpose at a corporation tax rate of 3% Note 4 Propety plant and equipment COST/VALUATION Freehold land & Buildings Sh. Motor vehicles Sh. Fixtures & Fittings Sh. 19,2 1,6 (1,455) Total Sh. Bal as at Additions Disposals Revaluations 27, 3, 48,96 2,24 (2,8) 338,16 3,84 (4,255) 3, Bal as at , 48,4 19, ,745 Accumulated Depreciation Bal as at Eliminated on disposal Charge for the year Bal as at NBV as at NBV as at Note 5 Dividends 3, 27, 13,82 (2,15) 12,58 24,25 24,15 35,14 8,46 (95) 1,4 8,595 1,75 1,74 22,28 (3,55) 13,65 32, ,88 315,88 During the year the company paid a dividend of sh.1.3 on the preference shares outstanding. The directors are now proposing a dividend of sh.1.35 per s share on the number of ordinary shares outstanding at the end of the year. NUMBER TWO It is difficult to approach the question by preparing the profit and loss account for the last six months because this is what the examiner asked for. Therefore the results for the fisrt six months have been included for the purpose of illustration only.

15 Kamari ltd Trading profit and loss account for the year ended 31 May 22 Six months to Six months to Total Sh. Sh. Sh. Sh. Sh. Sh. Sales Cost of sales Gross profit Less Expenses 24, 14,4 9,6 36, 21,6 14,4 6, 36, 24, Administrative expenses Selling expenses Audit fees Incorporation expenses Depreciation: Furniture 3, 1, ,2 45 3, 1, ,65 3, 3, 1, ,8 45 1,65 3,5 3,5 Motor vehicle Interest on loan Director s salaries Goodwill written off Net profit Less salaries: Kariuki Mamba Richards Share of profits: Kariuki Mamba Richards ,75 2,85 1,65 1,2 (1,2) 11,87 2, ,2 5,38 1,65 3,73 (1,2) 2,53 Drawin gs Kari uki Sh , Mamb a Sh ,51 Richar ds Sh ,6 CAPITAL ACCOUNTS Kariu ki Sh. Balance b/d Salaries 18, 75 Mamb a Sh. 9, 75 Richar ds Sh. 6, 45

16 Share capital Profits Goodwill Revaluation Interest Loan 23,75 4 4, , , 4 4,5 1 23,96 11,51 23,75 23,96 11,51

17 Kamari ltd Balance sheet as at 31 May 22 Non Current assets Property, plant and equipment (note 1) Goodwill Current Assets Inventories Accouts receivable Prepayments Financed by : Ordinary share capital Retained profits Current liabilities Accounts payables Accruals Bank overdraft TOTAL EQUITY AND LIABILITIES Ksh. 14,4 9, 6 7,2 3 1,2 Ksh. 34,68 1, 24, ,63 2,53 59,98 8,7 68,68 NOTE 1 PROPERTY, PLANT AND EQUIPMENT COST ACC.UMULAT ED DEPRECIATI ON Freehold property Furniture and fittings Motor vehicles 27, 2,4 6, (12) (6) NBV 27, 2,28 5,4 34,68 Motor vehicles Capital: K M R Revaluation account 1, ,5 Freehold property Furniture & Fittings 1,2 3 1,5

18 NUMBER THREE Dotty manufacturers Trading Profit and Loss Account 31 march 22 Sales Goods sent to branch Cost of Sales Opening Stock Purchases Goods from Head office Less closing stock Gross profit Expenses Depreciati on Fitting Administr ation Distributio n UPCI and GIT Exchange Loss Managers Commissi on Net Profit Profit and Loss b/f Profit and Loss c/f KSh. Head office Branch Branch Combined KSh. Cm. Cm. KSh. KSh. KSh. KSh. 11,9. 277, ,23. _16, , , ,23. 14,5. 65,63. 79,68. 28,5. ) 1,6. 19,25. 7, (51,18. ) 66,81. (28,67. ) 38,14. _ 48, ,5. 25,37. (21,775. ) 9,45. 28, ,815.4 _4,353. (183,532. ) 93,71. (62,133. ) 31,568. 4, ,65. 2,87. (2,5. ) 9. 2, ,81.4 1, (18,37. ) 7, (6, ) ,5. 7,67. 84,117. (3,31. ) 2,5. 21, , , , ,293. (52,87. ) 73, (34, ) 38, ,. 5,

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20 Balance Sheet Head office Branch Branch Combined KSh. KSh. Cm Cm. KSh. KSh. KSh. KSh. Non Current Assets Premises Fixtures & Fittings Less Depreciati on Branch Current Accts Less UPCs Current Assets Stock at warehouse in transit Debtors Bank balance Cash in transit Cash in hand Current liabilities Creditors Managers Commissi on Net Assets Share capital 14, (24. ) 28,5. 1,. 17,55. 9, ,694. 4,5. (4,5. 45,. 16,. (8,. ) 53,. 14, , _53, , , ,1. 27,84. 8,598. 9, ,336. 4,353. (16,689. ) 94,5. (9,45. ) 85,5. _73, ,918. 2,5. 2,925. 2, , , (1,39.75 ) 9,. _(9. ) 8,1. 6, , , ,. 2, , _1, , , (5,89.75 ) 45,. 25,. (8,9. ) 61,1. _59, ,

21 Reserves Profit&Lo ss Account Head office current account ) 5,. 2,. _5, , , , , , ,. 2,. 5, ,

22 Workings Translated Trial Balance Branch Rate Branch Cm. Cm. KSh. Fixtures and fittings Debtors Creditors Bank Cash Sales Purchases Goods from Head office Head office current account Administration expenses Distribution expenses Commission expenses Commission accrued Depreciated Fixtures Depreciated Provision Closing StockEx. Kenya Local Closing SdEx. Kenya Local Exchange loss balance fig) 94,5. 35,1. 27,84. 8, , ,5. 28, , ,353. 9,45. 12,. 9, , , , ,35. 4,353. 9,45. 12,. 9, ,497. 1/1.5 1/12 1/12 1/12 1/12 1/11 1/11 1/1 ACT 1/11 1/11 1/11 1/12 1/1.5 1/1.5 1/1 1/11.5 1/1 1/1.5 9,. 2,925. 2, , ,65. 2, , ,2. 85 KSh. 1,28. 25,23. 14, , , Books of Head Office Branch Current Account KSh. Balance b/d 15,9. 15,9. Goods in transit Cash in transit Balance c/d _1, , KSh. 1, , ,9.

23 Managers Commission Cost of sales relating to goods from head office Cm. Goods from Head office 156,5. Less Closing Stock 12,.) 144,5. Mark up of 5% 72, ,75. Commission at 2% 4,335.

24 NUMBER FOUR WORKINGS 1. Determination of group structure Control in Menga = 4,5 x 1% = 3% (Associate) 15, Control in Lera = 15, x 1% 75%(Subsidiary) 2, 2. Unrealized profit on stock Buying price Margin Selling price Treatment: Dr Holding co. Dr MI Cr group stock % x 8, 25% x 8, % Sh. 32, 8, 4, = 6, = 2, 8, 3. Premium on acquisition of associate. Cost of investment Share of associate equity Ordinary share capital Share premium Retained (218 12) 3% x 44, Amortization per annum 2, = 4, 2 Sh. Sh. 152, 3, 24, 116, 132, 2, Cost of investment Share of post acquisition profit INVESTMENT IN ASSOCIATE Sh. 152, 21,6 Premium Amortization Balance to CBS Sh. 4, 173,6 173,6 4. Analysis of Lera Cost of investment COST OF CONTROL Sh. 716, Share of Equity OSC (75% x 4,) Capital reserve (75% x 56,) Sh. 3, 42,

25 Profits 75% ( ) ¼ 1/7) 75% x 3/12 (128 4) Preacquisition dividend (75% x 4 x ¾) Revaluation reserve (75% x 24,) Goodwill 12, 16,5 7,5 18, 5, 716, 716, Goodwill amortization C/D = 5, x 9/12 = 7, GROUP RETAINED EARNINGS A/C Sh. Cost of control 136,5 Balance b/d (Mega) (786 2) (12, + 16,5) Lera Ltd (288 1% x 4) MI (25% x 248,) 62, Associate (investment) UPCS 6, Share of post acquisition Depreciation adjustment Share of dividends: subsidiary (18, x 1%) 18, (75% x 4, x 9/12) Goodwill amortization 7,5 Associate (3% x 3,) Premium 4 To CBS 653,1 Sh. 586, 248, 21,6 22,5 9, 887,1 887,1 6. MINORITY INTEREST Sh. Sh. UPCS To CBS 2, 174, OSC (25%x 4) Capital Reserves (25% x 56) Retained profit 25% (288 4) 1, 14, 62, 176, 176, 7. PLANT & MACHINERY Pega (1,375, 521,8) Lera (35,6 124,6) Share of revaluation (75% x 24) Depreciation in revaluation 853,2 225,6 18, (18,) 1,24,6

26 PEGA LTD & SUBSIDIARY CONSOLIDATED BALANCE SHEET AS AT Non Current Assets Property (72 + 2) Plant & Machinery Goodwill Investment in associate Current Assets Stock ( ) Debtors ( ) Dividends Receivable Cash in Transit Bank Financed by: Share capital Share premium Capital Reserve Retained Earnings MI: Non current liability Current liabilities Creditors ) Tax ( ) Dividends proposed (Mega) (2% x 2M MI share dividend (25% x 4,) Bank overdraft TOTAL EQUITY AND LIABILITIES Sh. 732,6 499,8 9, 12, 4, 742, 293, 2, 1, 94, Sh. 92, 1,24,6 42,5 169,6 2,372,7 1,293,4 366,61 1,, 2, 3, 653,1 215,31 174, 2,327,1 1,339, 366,61 NUMBER FIVE (a) Maintenanc e Distribution A/C BENEFICIARIES ACCUMULATION A/C HA RI Sh. TE D Sh. KE N Sh. 154, 553,4 162, 267,2 188, 54,6 Balance b/d Capital income (1:1:1) Acc. Income HARI Sh. 41,4 148,5 TED Sh. 27,9 148,5 KE N Sh. 69,3 148,5

27 Bal c/d Revaluation gain 74,714 7,258 WORKINGS: 77, , , Distribution of accumulation income HARI 414, x 124,74 = 74,714 Ted 691,2 27,9 x 124,74 = 37,52 691,2 77, ,52 35, ,2 2 12,5 6 11,76 242, 66 Ken 69,3 x 124,74 = 12,56 691,2 2. Revaluation gains / Trust Initial MPs Sh Kimbo Ltd Dima Ltd Kewa Ltd Total New MPs Sh Difference Sh No. of shares Sh 9,6 12,6 13,2 Gain to Acc. Sh 288, 54, 264, 1,56, 3. Revaluation gains /Accumulation 14 x5, ,2 = 117,3 Distribution of the revaluation gains 414, Hari x117,3 691,2 27,9 Ted x117,3 691,2 69,3 Ken x117,3 691,2 = 7,258 = 35,282 = 11,76 TRUST CAPITAL A/C Sh. Sh.

28 Distribution 1/3 Bal c/d 2/3 1,672, Bal b/d 3,96, 3,344, Revaluation gain 1,56, 5,16, 5,16, (b) DISTRIBUTION STATEMENT A/C Sh. 1, shares in Lima Ltd 1,6, Trust capital 6 shares in Sh.12 72, 1,672, Sh. 1,672, 1,672, Cash 3493 shares in Sh.14 64,444 Accumulation A/c 553, ,28 553, ,472

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