QUESTION Here is the Trial Balance of Mr T Ltd as at 30 April 2020: Dr Cr K K Share capital: authorized and issued 200,000 Inventory as at 30 April 2019 102,994 Accounts receivable 227,219 Accounts payable 54,818 8% loan notes 40,000 Non-current asset replacement reserve 30,000 General reserve 15,000 Retained profits as at 30 April 2019 12,411 Loan note interest 1,600 Equipment at cost 225,000 Motor vehicles at cost 57,200 Bank 4,973 Cash 62 Sales 880,426 Purchases 419,211 Returns 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 FINANCIAL STATEMENTS AND COMPANY VALUATION Provision for depreciation at 30 April 2019 Equipment 32,600 Motor vehicles 18,200 1,283,455 1,283,455 Given the following information as at 30 April 2020, draw up an income statement and statement of financial position as at that date. (i) Inventory K111,317. (ii) The share capital consisted of 300,000 ordinary shares of K1 each. The dividend on the preference shares of 50n each and 50,000 12 per cent preference shares of k1 each. The dividend on the preference shares were proposed to be paid as well as dividend of 18 per cent on the ordinary shares. (iii) Accrued: rent 802; Directors’ remuneration K6,000. (iv) Loan note interest ½ year’s interest owing. (v) Depreciation on cost: Equipment 20 per cent; Motor vehicles 25 per cent. (vi) Transfers to reserves: General reserve K5,000; Non Current assets replacement reserve K10,000.
QUESTION
Here is the
Dr Cr
K K
Share capital: authorized and issued 200,000
Inventory as at 30 April 2019 102,994
Accounts payable 54,818
8% loan notes 40,000
Non-current asset replacement reserve 30,000
General reserve 15,000
Retained profits as at 30 April 2019 12,411
Loan note interest 1,600
Equipment at cost 225,000
Motor vehicles at cost 57,200
Bank 4,973
Cash 62
Sales 880,426
Purchases 419,211
Returns 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
FINANCIAL STATEMENTS AND COMPANY VALUATION
Provision for
Equipment 32,600
Motor vehicles 18,200
1,283,455 1,283,455
Given the following information as at 30 April 2020, draw up an income statement and
(i) Inventory K111,317.
(ii) The share capital consisted of 300,000 ordinary shares of K1 each. The dividend on the
(iii) Accrued: rent 802; Directors’ remuneration K6,000.
(iv) Loan note interest ½ year’s interest owing.
(v) Depreciation on cost: Equipment 20 per cent; Motor vehicles 25 per cent.
(vi) Transfers to reserves: General reserve K5,000; Non Current assets replacement reserve K10,000.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Assuming you are being to prepare the Statement of Changes in Equity as part of the requirements. How would you go about it?
by Bartleby ExpertHow did you get the
by Bartleby Expert
