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Required 1. Prepare the income statement for the year ended 31 October 2019 2. The statement of financial position as at 31 October 2019

Required 1. Prepare the income statement for the year ended 31 October 2019 2. The statement of financial position as at 31 October 2019

FINANCIAL ACCOUNTING
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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Additional information as at 31 October 2019. a. Closing inventory has been counted and is valued at R75,000 b. An invoice of R15 000 for energy expenses for October 2019 has not been received. c. The allowance for debtors is to be increased to 5% of trade receivable. d. Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses. e. Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales f. Tax has been calculated as R45 000 for the year. g. The current share price of Carl Ltd is R1.30 per share h. Debenture interest has not been paid for the year. The items listed below should be apportioned as indicated Cost of Sales Administrative Distribution Costs Expenses Discounts received 100% Energy expenses 40% 20% 40% Wages 40% 25% 35% Director's remuneration 100% Required 1. Prepare the income statement for the year ended 31 October 2019 2. The statement of financial position as at 31 October 2019 NOTE: Show all workings
Transcribed Image Text:Additional information as at 31 October 2019. a. Closing inventory has been counted and is valued at R75,000 b. An invoice of R15 000 for energy expenses for October 2019 has not been received. c. The allowance for debtors is to be increased to 5% of trade receivable. d. Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses. e. Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales f. Tax has been calculated as R45 000 for the year. g. The current share price of Carl Ltd is R1.30 per share h. Debenture interest has not been paid for the year. The items listed below should be apportioned as indicated Cost of Sales Administrative Distribution Costs Expenses Discounts received 100% Energy expenses 40% 20% 40% Wages 40% 25% 35% Director's remuneration 100% Required 1. Prepare the income statement for the year ended 31 October 2019 2. The statement of financial position as at 31 October 2019 NOTE: Show all workings
You are presented with the following trial balance of Carl Ltd at 31 October 2018. Dr Cr R,000 R,000 Building at cost 740 Buildings, accumulated depreciation, 1 November 2018 60 Plant at cost 220 Plant, accumulated depreciation, 1 November 2018 110 Land at cost 235 Bank balance 50 Revenue 1,800 Purchases 1,105 Discounts received 90 Returns inwards 35 Wages 180 Energy expenses 105 Trade Payables 250 Trade Receivables 320 Inventory at 1 November 2018 160 Allowance for debtors at 1 November 2018 10 Administrative expenses 80 Director's remuneration 70 Accumulated profit at 1 November 2018 130 10% Debenture 50 Dividend paid 30 R1 Ordinary shares 650 Share premium account 80 3,280 3,280
Transcribed Image Text:You are presented with the following trial balance of Carl Ltd at 31 October 2018. Dr Cr R,000 R,000 Building at cost 740 Buildings, accumulated depreciation, 1 November 2018 60 Plant at cost 220 Plant, accumulated depreciation, 1 November 2018 110 Land at cost 235 Bank balance 50 Revenue 1,800 Purchases 1,105 Discounts received 90 Returns inwards 35 Wages 180 Energy expenses 105 Trade Payables 250 Trade Receivables 320 Inventory at 1 November 2018 160 Allowance for debtors at 1 November 2018 10 Administrative expenses 80 Director's remuneration 70 Accumulated profit at 1 November 2018 130 10% Debenture 50 Dividend paid 30 R1 Ordinary shares 650 Share premium account 80 3,280 3,280
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