The following additional financial data was also available as at 31/12/2021: Inventory value was £12,000,000. The amount paid for marketing expenses to the year-end includes £5,000,000, which is for the next accounting period. The company had outstanding business rate of £500,000. 8% of the company motor vehicles were used by the senior management of the company for company business. The company depreciation policy is as follows: The depreciation rate on motor vehicles is 30% on a reducing balance basis. The depreciation on office equipment is 40% on cost. The authorised ordinary share capital is 200,000,000 shares at 80p each. The authorised 10% preference share capital is 50,000,000 shares at 60p each. A trade receivable of £12,000,000 was irrecoverable. The provision for doubtful debts is to be 5% on trade receivables. Preference share dividends were paid by bank transfers, and not reflected in the relevant books of accounts listed in the trial balance Show all necessary workings and proper headings of the financial statements: For ABC Ltd., prepare the following: Income Statement for the year ended 31/12/2021. Statement of Financial Position as at 31/12/2021.
The following additional financial data was also available as at 31/12/2021: Inventory value was £12,000,000. The amount paid for marketing expenses to the year-end includes £5,000,000, which is for the next accounting period. The company had outstanding business rate of £500,000. 8% of the company motor vehicles were used by the senior management of the company for company business. The company depreciation policy is as follows: The depreciation rate on motor vehicles is 30% on a reducing balance basis. The depreciation on office equipment is 40% on cost. The authorised ordinary share capital is 200,000,000 shares at 80p each. The authorised 10% preference share capital is 50,000,000 shares at 60p each. A trade receivable of £12,000,000 was irrecoverable. The provision for doubtful debts is to be 5% on trade receivables. Preference share dividends were paid by bank transfers, and not reflected in the relevant books of accounts listed in the trial balance Show all necessary workings and proper headings of the financial statements: For ABC Ltd., prepare the following: Income Statement for the year ended 31/12/2021. Statement of Financial Position as at 31/12/2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following additional financial data was also available as at 31/12/2021:
- Inventory value was £12,000,000.
- The amount paid for marketing expenses to the year-end includes £5,000,000, which is for the next accounting period.
- The company had outstanding business rate of £500,000.
- 8% of the company motor vehicles were used by the senior management of the company for company business.
- The company
depreciation policy is as follows: - The depreciation rate on motor vehicles is 30% on a reducing balance basis.
- The depreciation on office equipment is 40% on cost.
- The authorised ordinary share capital is 200,000,000 shares at 80p each.
- The authorised 10%
preference share capital is 50,000,000 shares at 60p each. - A trade receivable of £12,000,000 was irrecoverable.
- The provision for doubtful debts is to be 5% on trade receivables.
- Preference share dividends were paid by bank transfers, and not reflected in the relevant books of accounts listed in the
trial balance
Show all necessary workings and proper headings of the financial statements:
- For ABC Ltd., prepare the following:
- Income Statement for the year ended 31/12/2021.
- Statement of Financial Position as at 31/12/2021.
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