Question

Stakeholders of LMG SAOG have been referring the company financial reports for variety of
reasons.
(a) Select FIVE of stakeholders from your own choice and explain the reasons for them to use
LMG SAOG's financial information

The following information is available for LMG SAOG as at 31st December 2019.

Debtors	11000	Debentures	15400
Creditors	12900	Retain Earnings	(1201)
Bank Overdraft (OD)	1270	Buildings	45000
Land	25000	Cash in hand	12800
Inventories	11300	Share capital	?

(b) Prepare LMG SAOG’s balance sheet as at 31st December 2019 and find the value of share capital. Note: Balance sheet must be in good format and with appropriate headings.

,

Answer 1

Balance sheet of LMG SAOG's as on 31st December 2019
Assets	Liabilities
Particulars	Amount	Particulars	Amount
Current Assets :		Current Liabilities:
Cash In Hand	12,800	Bank Overdraft (OD)	1,270
Debtors	11,000	Creditors	12,900
Inventories	11,300
		Non - Current Liabilities :
Non Current Assets :		Debentures	15,400
Land	25,000
Buildings	45,000	Sare Holders Funds :
		Share Capital	76,731
		Retained Earnings	(1,201)
Total	105,100	Total	105,100

The value of share capital is 76,731