Gce Model Questions Vol1 2018 Financial Accounting Question 3

The trial balance of XYZ Ltd at 31 December 2025 (all figures in \(\text{₦}\) thousands) is:\nCash \(50\), Trade receivables \(80\), Inventory \(120\), Property, plant & equipment (cost) \(300\), Accumulated depreciation \(100\), Accounts payable \(70\), Bank loan \(150\), Share capital \(200\), Retained earnings (b/f) \(30\).\nAdditional information:\n- Sales revenue for the year was \(\text{₦}500\).\n- Purchases during the year amounted to \(\text{₦}200\).\n- Closing inventory is \(\text{₦}140\).\n- Depreciation is charged on the gross block at 20 % using the reducing‑balance method.\n- Bad debts written off: \(\text{₦}5\); allowance for doubtful debts created: \(\text{₦}3\).\n- A final dividend of 10 % on the share capital is declared (payable next year).\n- The company issues 2 000 new shares of \(\text{₦}20\) each at a premium of \(\text{₦}5\) per share; the proceeds are received in cash.\nAssuming the company had 10 000 shares before the issue, prepare a statement of profit or loss for the year and compute the earnings per share (EPS) after the share issue.