Prepare in a vertical form for publication profit & lost account for the year ended 30th April 201

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
  1. Marlboro Ltd. Has an authorized share capital of sh. 1,000,000 in ordinary shares of sh.5 each 120,000 shares have been issued on which sh. 3.75 per share has been called up.

The following is the trial balance on 30th April, 2014.

The following information is relevant:

  1. The following items are provided for
    • Director’s fees sh. 45,000
    • Auditor’s remunerations sh. 9,000
    • Depreciation at 2% on cost of the freehold, land & buildings and 10% on cost of the plant & machinery.
    • Sh. 7,500 for doubtful debts.
  2. Quoted investments have a market value of sh.64, 000.
  3. The corporation tax at 30% based on the profits of the year is estimated at sh. 85,000.
  4. The directors decided to write off the preliminary expenses, transfer sh. 11,000 to General Revenue and sh.10,000 to a reserve for future fluctuations in raw material prices and distribute a divided of 50 cents per share.

Required

  1. Prepare in a vertical form for publication profit & lost account for the year ended 30th April 2014. 

A balance sheet as at that date. 

Dr
Cr
Shs.
Shs.
Share Capital
Freehold Land & Buildings at cost
450,000
400,000
Plant and machinery at cost (addition during the year Shs. 40,000) 450,000
Goodwill at cost
50,000
Preliminary exреnses
26,250
Quoted investments at cost
60,000
Stock April 30, 2014 at cost
117,500
Accounts receivable
225,000
Provision for dергесіation - April 30, 2014
On freehold land & building
On plant and machinery
100,000
150,000
Income from quoted investments
Share premiumn a/c
Accounts payable & accurals
2,500
20,000
75,000
Balance at bank
41,250
Cash in hand
1,875
Profit & Loss a/c - bal may, 1, 2013
Profit on trading for the year to 30 April 2014
192,500
281,875
Game reserves
O 100,000
1,371,875 1,371,875
Transcribed Image Text:Dr Cr Shs. Shs. Share Capital Freehold Land & Buildings at cost 450,000 400,000 Plant and machinery at cost (addition during the year Shs. 40,000) 450,000 Goodwill at cost 50,000 Preliminary exреnses 26,250 Quoted investments at cost 60,000 Stock April 30, 2014 at cost 117,500 Accounts receivable 225,000 Provision for dергесіation - April 30, 2014 On freehold land & building On plant and machinery 100,000 150,000 Income from quoted investments Share premiumn a/c Accounts payable & accurals 2,500 20,000 75,000 Balance at bank 41,250 Cash in hand 1,875 Profit & Loss a/c - bal may, 1, 2013 Profit on trading for the year to 30 April 2014 192,500 281,875 Game reserves O 100,000 1,371,875 1,371,875
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Investments and Financial instruments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education