At the end year ended 31/12/2005 Bidii farm recorded the following:

At the end year ended 31/12/2005 Bidii farm recorded the following:
Perennial crops 250,000
Bank loans 30,000
Cash at hand 5,000
Bank overdrafts 15,000
Land 350,000
Unpaid wages 3,000
Debts receivable 20,000
Stocks in store 25,000
Livestock 200,000
Bank balances 100,000
(a) Prepare a balance sheet as at 31/12/2005
(b) Did Bidii farm qualify for a loan and why?

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a)
b) Yes it qualified for a loan because it was solvent i.e. has more assets than liabilities.

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sharon kalunda answered the question on April 15, 2019 at 14:27

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• The following transactions were extracted from Mr. Tembo’s financial books for the year ending 31st Dec 2003.study and answer the questions that follow: (Solved)
  

  The following transactions were extracted from Mr. Tembo’s financial books for the year ending 31st Dec 2003.study and answer the questions that follow:
  
  i) Prepare a profit and loss account for Mr. Tembo’s farm for the year ending 31st Dec. 2003
  ii) Calculate the percentage profit or loss made by the farm

  Date posted: April 15, 2019 .    Answers (1)