As the accountant, how do i prepare a Trading and Profit and Loss Account
Tiger Ltd. has an authorized capital of 700,000 $1 ordinary shares, of which 300,000 have been issued as fully paid. The following information was extracted from the accounts for the year ended September 30, 2019:
|
Details/Accts. |
$ DR |
$ CR |
|
Motor Vehicle at cost |
1,750,000 |
|
|
Acc. Depreciation Motor Vehicle |
|
450,000 |
|
Freehold premises at cost |
400,000 |
|
|
Carriage inwards |
35,500 |
|
|
Sales |
|
4,500,000 |
|
Stock, October 1, 2018 |
95,000 |
|
|
Administration (Wages and Salaries) |
170,000 |
|
|
Distribution (Wages and Salaries) |
250,000 |
|
|
Motor vehicle running costs |
350,000 |
|
|
Purchases |
935,000 |
|
|
Returns inward |
32,000 |
|
|
Returns outward |
|
51,000 |
|
Directors’ remuneration |
865,000 |
|
|
Auditors’ fees |
120,000 |
|
|
General administrative expenses |
78,500 |
|
|
Discounts allowed |
25,000 |
|
|
|
|
320,000 |
|
Ordinary Shares |
|
300,000 |
|
Interim Dividends paid |
15,000 |
|
|
Cash |
500,000 |
|
|
|
5,621,000 |
5,621,000 |
Additional Information:
(i) The closing stock was valued at $300,000.
(ii) The ordinary share dividends for the year were: Interim 5% already paid; Final 10% proposed.
(iii) The directors decided to transfer $250,000 to General Reserve.
(iv) Expenses in arrears at September 30, 2019 were:
Motor vehicle running costs $80,000 and Salaries and wages: Distribution staff $70,000
(v) Expenses paid in advance were: General administrative costs $9,000 and Auditors’ fees $40,000
(vi) The liability for corporation tax for the year ended September 30, 2018 had been agreed at $580,000.
(vii) The company
(viii) The company depreciated Motor Vehicle at 10% per annum using the
(ix) The company’s motor vehicles were used by staff as follows:
Distribution staff 500,000 miles per annum
Administration staff 200,000 miles per annum
As the accountant, how do i prepare a Trading and
Step by step
Solved in 3 steps with 1 images
