Prepare in a vertical form for publication profit & lost account for the year ended 30th April 201
Prepare in a vertical form for publication profit & lost account for the year ended 30th April 201
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- 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
The following information is relevant:
- 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.
- Quoted investments have a market value of sh.64, 000.
- The corporation tax at 30% based on the profits of the year is estimated at sh. 85,000.
- 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
- 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b4b5832-ca80-432d-a364-a9abcac6c1a9%2F56a16a6f-6064-4714-a5a2-41f5e4a7f8b6%2Fk0lfpd_processed.png&w=3840&q=75)
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
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