100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

Identify four shortcomings of traditional accounting

Identify four shortcomings of traditional accounting methods in the context of accounting for human resources. (4 marks)(b) (i) Baraza Ltd., which supplies office equipment, has been trading for several years. Its issued share capital as at 1 January 2001 was 300,000,000 ordinary shares of Sh.100 per value. However, only 250,000,000 ordinary shares were fully paid and the balance were paid up to the amount of Sh.75. The shares issued at per. The following information relates to the period 1 January 2001 to 31 December 2003:On 1 April 2001, the outstanding amounts on the partly paid shares were received.2. During the year ended 31 December 2002, Baraza Ltd. decided to raise further capital by making a rights issue. The rights issue took place on 31 August 2002 on a 1 new share for every 2 existing shares basis at Sh.120 per share. The actual cum-rights price on the last day of quotation was Sh.180.3. Baraza Ltd. suffered from adverse publicity in the year 2003 and in order to prevent a significant loss of profits, a new company, Kikundi Ltd., was formed on 1 July 2003 to take over the business of Baraza Ltd. In order to gain acceptance by existing shareholders, Kikundi Ltd. issued 2 shares for every 1 held in Baraza Ltd. Uniting of interests principles have been adopted in Kikundi Ltd. accounts in order to maintain the comparability of reported earnings.The following are the income statements of Baraza Ltd. and Kikundi Ltd. for the years ended 31 December 2001, 2002 and 2003:Baraza Ltd.Income statement forYear ended 31 DecemberKikundi Ltd.Income statement forYear ended 31 December2001Sh.“million”2001Sh.“million”2001Sh.“million”Sales revenue8001,1001,800Cost of salesGross Profit(300)500(500)600(800)1000Administrative expenses(120)(130)(200)Distribution costs(60)(50)(100)Profit before tax320420700Taxation (140) (170)(250)Profit after tax180250450Extra ordinary item 20 – -Profit for the year200250450Dividends paid(50)(70)(200)Retained profit for the year 150 180 250Required:Calculate the earnings per share (EPS) figures which would appear in the financial statements of Baraza Ltd. and Kikundi Ltd. for the years ended 31 December 2001, 2002 and 2003 with comparative figures for 2002 and 2003. (12 marks)(ii) Explain the reasons underlying the method of calculation of earnings per share (EPS) in a financial year when there has been a rights issue. (4 marks) (Total: 20 marks)

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Custom Writing Service

Instant Quote
Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!