Consider the following data being taken out of the trial balance of GPA Ltd. as at 31 March 2017: Dr Cr Ordinary shares of $5 each 520,000 Preference shares of $1 each 10,000 8% debentures 84,000 General reserve 89,700 Retained profits 145,623 Motor vehicles at cost 175,000 Machinery at cost 196,000 Accumulated depreciation - vehicles 109,500 Accumulated depreciation - machinery 127,800 Stock at 31 March 2016 94,403 Debtors 225,640 Creditors 91,661 Cash at bank 566,662 Purchases 222,820 Sales 630,260 Wages & salaries 73,740 General expenses 84,608 Directors’ remuneration 30,364 Rent and rates 100,807 Debenture interest 2,880 Interim dividend paid – Ordinary shares 9,400 Interim dividend paid – 10% Preference shares 500 Insurance 25,720 Total 1,808,544 1,808,544 The following additional information relating to GPA Ltd. is also available: Stock at 31 March 2017 was valued at $59,200. Machinery costing $43,600, which $28,280 depreciation had been provided, was sold for $21,560 during the year. This transaction has not been recorded because the proceeds of sale has not yet received at year end. There was no purchase of fixed assets during the year. Depreciation on motor vehicles and machinery are provided on straight-line basis on cost at the rate of 10% p.a. and 5% p.a. respectively. Accrued Rates amount of $5,680 and prepaid insurance $9,800 were in the year. The estimated tax expenses for the year amounting to $6,540. The directors have decided to increase the general reserve up to $90,000 in total. REQUIRED: Prepare a Statement of profit or loss and other comprehensive income for the year ended 31 March 2017, a Statement of changes in equity and a Statement of financial position as at that date.

Consider the following data being taken out of the trial balance of GPA Ltd. as at 31 March 2017: Dr Cr Ordinary shares of $5 each 520,000 Preference shares of $1 each 10,000 8% debentures 84,000 General reserve 89,700 Retained profits 145,623 Motor vehicles at cost 175,000 Machinery at cost 196,000 Accumulated depreciation - vehicles 109,500 Accumulated depreciation - machinery 127,800 Stock at 31 March 2016 94,403 Debtors 225,640 Creditors 91,661 Cash at bank 566,662 Purchases 222,820 Sales 630,260 Wages & salaries 73,740 General expenses 84,608 Directors’ remuneration 30,364 Rent and rates 100,807 Debenture interest 2,880 Interim dividend paid – Ordinary shares 9,400 Interim dividend paid – 10% Preference shares 500 Insurance 25,720 Total 1,808,544 1,808,544 The following additional information relating to GPA Ltd. is also available: Stock at 31 March 2017 was valued at $59,200. Machinery costing $43,600, which $28,280 depreciation had been provided, was sold for $21,560 during the year. This transaction has not been recorded because the proceeds of sale has not yet received at year end. There was no purchase of fixed assets during the year. Depreciation on motor vehicles and machinery are provided on straight-line basis on cost at the rate of 10% p.a. and 5% p.a. respectively. Accrued Rates amount of $5,680 and prepaid insurance $9,800 were in the year. The estimated tax expenses for the year amounting to $6,540. The directors have decided to increase the general reserve up to $90,000 in total. REQUIRED: Prepare a Statement of profit or loss and other comprehensive income for the year ended 31 March 2017, a Statement of changes in equity and a Statement of financial position as at that date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Consider the following data being taken out of the trial balance of GPA Ltd. as at 31 March 2017:

	Dr	Cr
Ordinary shares of $5 each		520,000
Preference shares of $1 each		10,000
8% debentures		84,000
General reserve		89,700
Retained profits		145,623
Motor vehicles at cost	175,000
Machinery at cost	196,000
Accumulated depreciation - vehicles		109,500
Accumulated depreciation - machinery		127,800
Stock at 31 March 2016	94,403
Debtors	225,640
Creditors		91,661
Cash at bank	566,662
Purchases	222,820
Sales		630,260
Wages & salaries	73,740
General expenses	84,608
Directors’ remuneration	30,364
Rent and rates	100,807
Debenture interest	2,880
Interim dividend paid – Ordinary shares	9,400
Interim dividend paid – 10% Preference shares	500
Insurance	25,720
Total	1,808,544	1,808,544

The following additional information relating to GPA Ltd. is also available:

Stock at 31 March 2017 was valued at $59,200.

Machinery costing $43,600, which $28,280 depreciation had been provided, was sold for $21,560 during the year. This transaction has not been recorded because the proceeds of sale has not yet received at year end.

There was no purchase of fixed assets during the year. Depreciation on motor vehicles and machinery are provided on straight-line basis on cost at the rate of 10% p.a. and 5% p.a. respectively.

Accrued Rates amount of $5,680 and prepaid insurance $9,800 were in the year.

The estimated tax expenses for the year amounting to $6,540.

The directors have decided to increase the general reserve up to $90,000 in total.

REQUIRED:

Prepare a Statement of profit or loss and other comprehensive income for the year ended 31 March 2017, a Statement of changes in equity and a Statement of financial position as at that date.

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