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The following balance was extracted from the books of ABC Ltd at 31 December 2017. REGAL GUL 9. The following trial balance was extracted from the books of ABC Ltd at 31 December 2017 ABC Steel Ltd Trial balance at 31 December 2017 Recained eamings at 31 December 2016 us Additional information: Distribution expenses of £20,000 are to be accrued 2. Wages and salaries andrent and rates are to be apportioned: 50% Distribution expenses 50% Administrative expenses All other expenses are to be included under administrative expenses. 3. Closing inventories at 31 December 2017 are valued at £1,810,000 4. The balance of the loan stock interest for the year ended 31 December 2017 needs to be accrued. 5. Directors' remuneration is to be treated as ar administrative expense. 6. Depreciation for the year ended 31 December 2017 is to be provided for as follows: Fixtures - 20% on cost Motor vehicles -30% reducing balance. 7. Corporation tax charge for the year is estimated to be £130,000 REQUIRED: Task A Draft a Statement of Profit or Loss for ABC Ltd for the year ended 31 December 2017. Task B Draft a Statement of Financial Position for ABC Ltd as at 31 December 2017. The financial statements are to be presented in accordance with the format prescribed by IAS 1.

The following balance was extracted from the books of ABC Ltd at 31 December 2017. REGAL GUL 9. The following trial balance was extracted from the books of ABC Ltd at 31 December 2017 ABC Steel Ltd Trial balance at 31 December 2017 Recained eamings at 31 December 2016 us Additional information: Distribution expenses of £20,000 are to be accrued 2. Wages and salaries andrent and rates are to be apportioned: 50% Distribution expenses 50% Administrative expenses All other expenses are to be included under administrative expenses. 3. Closing inventories at 31 December 2017 are valued at £1,810,000 4. The balance of the loan stock interest for the year ended 31 December 2017 needs to be accrued. 5. Directors' remuneration is to be treated as ar administrative expense. 6. Depreciation for the year ended 31 December 2017 is to be provided for as follows: Fixtures - 20% on cost Motor vehicles -30% reducing balance. 7. Corporation tax charge for the year is estimated to be £130,000 REQUIRED: Task A Draft a Statement of Profit or Loss for ABC Ltd for the year ended 31 December 2017. Task B Draft a Statement of Financial Position for ABC Ltd as at 31 December 2017. The financial statements are to be presented in accordance with the format prescribed by IAS 1.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 77E: Ratio Analysis The following information was taken from Logsden Manufacturings trial balances as of...
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The following balance was extracted from the books of ABC Ltd at 31 December 2017. REGAL GUL 9. The following trial balance was extracted from the books of ABC Ltd at 31 December 2017 ABC Steel Ltd Trial balance at 31 December 2017 Recained eamings at 31 December 2016 us Additional information: Distribution expenses of £20,000 are to be accrued 2. Wages and salaries andrent and rates are to be apportioned: 50% Distribution expenses 50% Administrative expenses All other expenses are to be included under administrative expenses. 3. Closing inventories at 31 December 2017 are valued at £1,810,000 4. The balance of the loan stock interest for the year ended 31 December 2017 needs to be accrued. 5. Directors' remuneration is to be treated as ar administrative expense. 6. Depreciation for the year ended 31 December 2017 is to be provided for as follows: Fixtures - 20% on cost Motor vehicles -30% reducing balance. 7. Corporation tax charge for the year is estimated to be £130,000 REQUIRED: Task A Draft a Statement of Profit or Loss for ABC Ltd for the year ended 31 December 2017. Task B Draft a Statement of Financial Position for ABC Ltd as at 31 December 2017. The financial statements are to be presented in accordance with the format prescribed by IAS 1.
Transcribed Image Text:The following balance was extracted from the books of ABC Ltd at 31 December 2017. REGAL GUL 9. The following trial balance was extracted from the books of ABC Ltd at 31 December 2017 ABC Steel Ltd Trial balance at 31 December 2017 Recained eamings at 31 December 2016 us Additional information: Distribution expenses of £20,000 are to be accrued 2. Wages and salaries andrent and rates are to be apportioned: 50% Distribution expenses 50% Administrative expenses All other expenses are to be included under administrative expenses. 3. Closing inventories at 31 December 2017 are valued at £1,810,000 4. The balance of the loan stock interest for the year ended 31 December 2017 needs to be accrued. 5. Directors' remuneration is to be treated as ar administrative expense. 6. Depreciation for the year ended 31 December 2017 is to be provided for as follows: Fixtures - 20% on cost Motor vehicles -30% reducing balance. 7. Corporation tax charge for the year is estimated to be £130,000 REQUIRED: Task A Draft a Statement of Profit or Loss for ABC Ltd for the year ended 31 December 2017. Task B Draft a Statement of Financial Position for ABC Ltd as at 31 December 2017. The financial statements are to be presented in accordance with the format prescribed by IAS 1.
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