QUESTION FOUR: Here is the Trial balance of Falta Ltd as at 30 April 2018: Dr Cr $ $ Share capital: authorized and issued 200,000 Inventory as at 30 April 2017 102,994 Accounts receivable 227,219 Accounts payable 54,818 8% loan notes 40,000 Non-current assets replacement reserve 30,000 General reserve 15,000 Retained profits as at 30 April 2017 12,411 Loan note interest 1,600 Equipment at cost 225,000 Motor vehicle at cost 57,200 Bank 4,973 Cash 62 Sales 880,426 Purchases 419,211 Return inwards 18,400 Carriage inwards 1,452 Wages and salaries 123,289 Rent, business rates and insurance 16,240 Discounts allowed 3,415 Directors’ remuneration 82,400 Provision for depreciation at 30 April 2017: Equipment 32,600 Motor vehicles 18,200 1,283,455 1,283,455 Partnership accounts and company accounts Given the following information as at 30 April 2018, draw up an income statement and statement of financial position for the year to that date: (i) Inventory $111,317. (ii) The share capital consisted of 300,000 ordinary shares of 50p each and 50,000 12 per cent preference shares of $1 each. The dividend on the preference shares was proposed to be paid as well as a dividend of 18 per cent on the ordinary shares. (iii) Accrued: rent $802; directors’ remuneration $6,000. (iv) Loan note interest ½ year’s interest owing. (v) Depreciation on cost: equipment 20 per cent; motor vehicle 25 per cent. Transfers to reserves: General reserve $5,000; Non-current assets replacement reserve $10,000.

QUESTION FOUR: Here is the Trial balance of Falta Ltd as at 30 April 2018: Dr Cr $ $ Share capital: authorized and issued 200,000 Inventory as at 30 April 2017 102,994 Accounts receivable 227,219 Accounts payable 54,818 8% loan notes 40,000 Non-current assets replacement reserve 30,000 General reserve 15,000 Retained profits as at 30 April 2017 12,411 Loan note interest 1,600 Equipment at cost 225,000 Motor vehicle at cost 57,200 Bank 4,973 Cash 62 Sales 880,426 Purchases 419,211 Return inwards 18,400 Carriage inwards 1,452 Wages and salaries 123,289 Rent, business rates and insurance 16,240 Discounts allowed 3,415 Directors’ remuneration 82,400 Provision for depreciation at 30 April 2017: Equipment 32,600 Motor vehicles 18,200 1,283,455 1,283,455 Partnership accounts and company accounts Given the following information as at 30 April 2018, draw up an income statement and statement of financial position for the year to that date: (i) Inventory $111,317. (ii) The share capital consisted of 300,000 ordinary shares of 50p each and 50,000 12 per cent preference shares of $1 each. The dividend on the preference shares was proposed to be paid as well as a dividend of 18 per cent on the ordinary shares. (iii) Accrued: rent $802; directors’ remuneration $6,000. (iv) Loan note interest ½ year’s interest owing. (v) Depreciation on cost: equipment 20 per cent; motor vehicle 25 per cent. Transfers to reserves: General reserve $5,000; Non-current assets replacement reserve $10,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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QUESTION FOUR:
Here is the Trial balance of Falta Ltd as at 30 April 2018:
Dr Cr
$ $
Share capital: authorized and issued 200,000
Inventory as at 30 April 2017 102,994
Accounts receivable 227,219
Accounts payable 54,818
8% loan notes 40,000
Non-current assets replacement reserve 30,000
General reserve 15,000
Retained profits as at 30 April 2017 12,411
Loan note interest 1,600
Equipment at cost 225,000
Motor vehicle at cost 57,200
Bank 4,973
Cash 62
Sales 880,426
Purchases 419,211
Return inwards 18,400
Carriage inwards 1,452
Wages and salaries 123,289
Rent, business rates and insurance 16,240
Discounts allowed 3,415
Directors’ remuneration 82,400
Provision for depreciation at 30 April 2017:
Equipment 32,600
Motor vehicles 18,200
1,283,455 1,283,455
Partnership accounts and company accounts
Given the following information as at 30 April 2018, draw up an income statement and statement of financial position for the year to that date:
(i) Inventory $111,317. (ii) The share capital consisted of 300,000 ordinary shares of 50p each and 50,000 12 per cent preference shares of $1 each. The dividend on the preference shares was proposed to be paid as well as a dividend of 18 per cent on the ordinary shares. (iii) Accrued: rent $802; directors’ remuneration $6,000. (iv) Loan note interest ½ year’s interest owing. (v) Depreciation on cost: equipment 20 per cent; motor vehicle 25 per cent.
Transfers to reserves: General reserve $5,000; Non-current assets replacement reserve $10,000.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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