ILLUSTRATION

Ubandoma One Agriculture Ltd is a company which is involved in general agricultural

business. The trial balance below is extracted from the books of the company at 31st December,
2020.
N N
Sales:
Cattle 1,250,000
Milk and dairy 300,000
Crops:
Wheat 50,000
Maize 350,000
Beans 215,142
Yam 150,500
Costs of production:
Feeds 148,175
Fertilizer 182,132
Cattle 650,000
Seedlings 85,178
Insecticides 190,000
Capital (ordinary shares of N1 each) 2,454,484
Loan from BOA 320,000
Creditors for cattle 270,000
General Debtors 150,000
Tractor@ cost 980,000
Farm equipment @ cost 550,000
Farm Building @ cost 1,700,000
Bad Debt 65,000
Provision for Bad Debt 30,000

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Provision for depreciation:
Tractor 550,000
Equipment 120,000
Farm building 300,000
Stock (01/01/2021):
Cattle 350,000
Maize 37,589
Farm staff costs 189,519
Distribution cost 32,145
Repairs and maintenance 25,000
Veterinary fees 100,000
Livestock drugs 150,000
Petrol for machinery 36,000
Interest on loan 30,500
Profit and loss account 25,000
Cash balance 1,025,743
Rate 65,000
Electricity 38,145
Insurance 45,000
Interim Dividend paid 35,000
6,860,126 6,860,126
The following information is also relevant:
1. The stock of the company were valued at 31/12/2020 as follows:
Cattle N150, 000
Maize N36, 000
Beans N125, 000
Yam N57, 000
2. The company normally provides for depreciation on book value at the following rates:
Tractor 20%
Equipment 10%
Farm building 10%
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3. The following expenses were accrued
Farm staff cost N 15,000
Rates ` N2, 000
Insurance N 3,000
4. The provision for bad debt is to be increased by N2, 700. The estimated income tax of the
company for 2021 accounting year is N172, 875.
5. At the company’s board of directors meeting, the following decision have been taken:
i) Transfer to general reserve N135,000
ii) To pay final dividend of N150,000
You are required to:
1. Prepare the statement of financial performance of the company for the year
ended,31/12/2021
2. Prepare statement of financial position as at 31/12/2021