The following trial balance was extracted from the books of Night shade Ltd. as at 30 September 2020: 24 Land and buildings Motor vehicles at cost 151,000 60,000 Accumulated depreciation on motor vehicle (1 October 2019) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2019) 91,000 Revenue reserves 66,700 General expenses Salaries and wages Electricity 2,325 244,150 5,600 Bank balance 42,200 Interim dividend paid 7,000 Motor vehicles expenses 4,475 Insurance 7,150 Discounts allowed and discounts received 10,900 8,300 Bad debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) Share premium 160,000 36,000 8% debentures 60,000 Cash in hand 9,000 Directors' fees 40,000 2,020,750 2,020,750 Additional information: 1. IGoods costing $710 purchased on credit on 29 September 2020, were in transit and therefore had not been entered in the books by close of business on 30 September 2020. 2. Inventory as at September 2020 was valued at $112, 300 3. A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. 4. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. 5. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. 6. As at 30 September 2020, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. 7. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2020. 8. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. 9. The directors have proposed a final dividend of $2.50 per share. Required: 1. Income statement for the year ended 30 September 2020. 2. Statement of financial position as at 30 September 2020.
The following trial balance was extracted from the books of Night shade Ltd. as at 30 September 2020: 24 Land and buildings Motor vehicles at cost 151,000 60,000 Accumulated depreciation on motor vehicle (1 October 2019) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2019) 91,000 Revenue reserves 66,700 General expenses Salaries and wages Electricity 2,325 244,150 5,600 Bank balance 42,200 Interim dividend paid 7,000 Motor vehicles expenses 4,475 Insurance 7,150 Discounts allowed and discounts received 10,900 8,300 Bad debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) Share premium 160,000 36,000 8% debentures 60,000 Cash in hand 9,000 Directors' fees 40,000 2,020,750 2,020,750 Additional information: 1. IGoods costing $710 purchased on credit on 29 September 2020, were in transit and therefore had not been entered in the books by close of business on 30 September 2020. 2. Inventory as at September 2020 was valued at $112, 300 3. A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. 4. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. 5. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. 6. As at 30 September 2020, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. 7. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2020. 8. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. 9. The directors have proposed a final dividend of $2.50 per share. Required: 1. Income statement for the year ended 30 September 2020. 2. Statement of financial position as at 30 September 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
How did you calculate the proposed $2.50 dividend?
Solution
by Bartleby Expert
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education