Professional Documents
Culture Documents
SUPPLEMENTARY EXAMINATIONS
DATE: 19.09.2018
Instructions:
1|Page
Question One
Goba Ltd is involved in the manufacture of agricultural products and its financial statements are
as follows:
2016 2015
Tshs.'000' Tshs.'000'
Non-Current Assets:
Property, Plant & Equipment (PPE) 5120 3940
Total Non-Current Assets 5120 3940
Current Assets:
Inventories 1380 1220
Trade Receivables 780 680
Cash & Cash Equivalents 50 112
Total Current Assets 2210 2012
Non-Current Liabilities
Long Term loan 1500 1600
Total Non-Current Libilities 1500 1600
Current Liabilities
Trade Payables 1470 1500
Bank Overdraft 32 60
Tax Payable 110 60
Total Current Liabilities 1612 1620
2|Page
the firm made a loss on the sale of the PPE of Tshs. 40,000. The revaluation was perfomed
on 31st December 2016.
(iv) The company’s finance cost for the year equals its cash payment of Tshs. 92,000
Required;
a) Discuss the benefits of Goba ltd. preparing the statement of cash flows to the users of
financial statements. (5 marks)
b) Prepare the Statement of Cash Flows for the year ended 31st December 2016 for Goba
Ltd in accordance with IAS 7 statement of Cash Flows. (15 marks)
Question Two
The chief accountant of Geronimo Co. ltd have prepared the following financial statements from
company’s records for the financial year ended 31st December, 2016.
3|Page
Geronimo Co Ltd
Income statement for the period ending 31st December 2016
TZS
"000"
Sales revenue 1,100
Cost of sales (678)
Gross Profit 422
Operating expenses (309)
Operating profit 113
Investment Income:
Interest 15
Dividends 57
Interest expenses 22
Income tax (71)
Net profit for the year 92
Additional Information:
1. Operating expenses include a loss on disposal of non current assets of TZS. 5000
2. During the year plant which originally cost TZS.80,000 and depreciation of TZS. 15000
was disposed of.
Required:
Prepare cash flow statement for the year ending 31st December, 2016 using indirect method
and in accordance with IAS 7.
Question Three
The following financial statements was part of the final accounts of Rosee Co Ltd. for the year
ended 31st December, 2015:
Additional Information:
1. An amount of TZS. 250,000 was raised from the issue of share capital and a further TZS.
250,000 was raised from long term borrowings.
2. Interest expense was 400,000 for the period of which 170,000 was paid along with
100,000 relating to prior years.
3. During the period fixed assets worth TZS. 550,000 were acquired.
4. Plant with original cost of TZS. 80,000 and accumulated depreciation of TZS. 60,000 was
sold for TZS. 20,000
5. Sundry debtors and sundry creditors relate to credit sales and credit purchases only.
5|Page
Prepare cash flow statement of Rosee Co. ltd for the period ending 31st December 2015 in
accordance with IAS 7 - (20 marks)
Question Four
The following is the summarized Statement of Financial Position of Gamma ltd. as on 31 December
2013 and 31 December 2014.
AdditionalInformation:
1. During the year Investments costing TZS. 8,000 were sold for TZS 8,500.
2. Provision for taxation made for the year was TZS 9,000
3. During the year part of plant costing TZS 10,000 was sold for TZS 12,000 and the
profit was included in the profit and loss account
4. Dividend paid during the year amounted to TZS.44,080
5. Net profit during the year amounted to TZS 56,080.
Required:
Prepare Gamma ltd. Cash flow statement for the period ending 31.12.2014 using
indirect method. (20 marks)
6|Page