The following balances were obtained from the books of Tim Curry plc as at December 31, 2020. DR CR Cost of Sales 758,500 Closing Stock 210,000 10 % Debenture 350,000 Debenture Interest 20,000 General Reserves 40,000 5% Loan 200,000 Loan Interest 6,000 Retained Earnings 20,000 Goodwill 200,000 Ordinary Share Capital @ $2 400,000 10 % Preference Share Capital @ $1 400,000 Share Premium 30,000 Sales Turnover 1,300,000 Debtors 60,000 Bank 8,000 Provision for Bad Debts 5,000 Wages and Salaries 122,000 Insurance 47,000 Management Fees 60,000 Directors Fees 40,000 Motor Vehicle 500,000 Provision for Depn on Motor Vehicle 40,000 Premises 550,000 Machinery and Equipment 220,000 Creditors 33,000 Provision for Depn Mach & Equip 37,500 Interim Preference Shares Dividends 25,000 Interim Ordinary Shares Dividend 5,000 2,843,500 2,843,500 Additional Notes Wages and salaries owing by 8,000; Insurance is prepaid by 7,000 Provide for depreciation as follows Motor Vehicle 10% RB Machinery and Equipment 5% SL Goodwill is to be amortized by 15% Corporation tax is estimated to be 42,000 The provision for bad debts is to be revised to 10% of debtors. The adjustment is to be treated as administrative expenses Transfer 20,000 from profits to the general reserves The operating expenses are to be apportioned as follows Admin Selling & Dist Wages and Salaries 60% 40% Insurance 50% 50% Management Fees 50% 50% Directors Fees 70% 30% Depreciation 40% 60% The following proposals were approved by the directors Final ordinary shares premium @ 5% New issue of 50,000 Ordinary shares for a total value of 110,000 Question Prepare the following a) The Statement of Profit and Loss b) The Statement of Change in Equity c) The Statement of Financial Position
The following balances were obtained from the books of Tim Curry plc as at December 31, 2020.
|
DR |
CR |
Cost of Sales |
758,500 |
|
Closing Stock |
210,000 |
|
10 % Debenture |
|
350,000 |
Debenture Interest |
20,000 |
|
General Reserves |
|
40,000 |
5% Loan |
|
200,000 |
Loan Interest |
6,000 |
|
|
20,000 |
|
|
200,000 |
|
Ordinary Share Capital @ $2 |
|
400,000 |
10 % |
|
400,000 |
Share Premium |
|
30,000 |
Sales Turnover |
|
1,300,000 |
Debtors |
60,000 |
|
Bank |
|
8,000 |
Provision for |
|
5,000 |
Wages and Salaries |
122,000 |
|
Insurance |
47,000 |
|
Management Fees |
60,000 |
|
Directors Fees |
40,000 |
|
Motor Vehicle |
500,000 |
|
Provision for Depn on Motor Vehicle |
|
40,000 |
Premises |
550,000 |
|
Machinery and Equipment |
220,000 |
|
Creditors |
|
33,000 |
Provision for Depn Mach & Equip |
|
37,500 |
Interim Preference Shares Dividends |
25,000 |
|
Interim Ordinary Shares Dividend |
5,000 |
|
|
2,843,500 |
2,843,500 |
Additional Notes
- Wages and salaries owing by 8,000; Insurance is prepaid by 7,000
- Provide for depreciation as follows
Motor Vehicle |
10% RB |
Machinery and Equipment |
5% SL |
- Goodwill is to be amortized by 15%
- Corporation tax is estimated to be 42,000
- The provision for bad debts is to be revised to 10% of debtors. The adjustment is to be treated as administrative expenses
- Transfer 20,000 from profits to the general reserves
- The operating expenses are to be apportioned as follows
|
Admin |
Selling & Dist |
|
|
|
Wages and Salaries |
60% |
40% |
Insurance |
50% |
50% |
Management Fees |
50% |
50% |
Directors Fees |
70% |
30% |
Depreciation |
40% |
60% |
- The following proposals were approved by the directors
- Final ordinary shares premium @ 5%
- New issue of 50,000 Ordinary shares for a total value of 110,000
Question
Prepare the following
a) The Statement of
b) The Statement of Change in Equity
c) The
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