Scribd Logo
Upload

Welcome to Scribd!

  • 5 views

    ACCOUNT

    Uploaded by

    mika pius

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    ACCOUNT

    Uploaded by

    mika pius
    5 views3 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    5 views3 pages

    ACCOUNT

    Uploaded by

    mika pius

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    DETAILS Dr Cr

    Preference share capital: 50p shares 200,000


    Ordinary share capital: £1 shares 300,000
    General reserve 25,000
    Exchange reserve 15,000
    Profit and loss as on 31 March 20X1 21,000
    Stock 31 March 20X1 184,000
    Sales 1,320,000
    Returns inwards 34,000
    Purchases 620,000
    Carriage inwards 6,000
    Wages (putting goods into a saleable condition) 104,000
    Wages: Warehouse staff 40,000
    Wages and salaries: Sales staff 67,000
    Wages and salaries: Administrative staff 59,000
    Motor expenses (see note (ii)) 29,000
    General distribution expenses 17,000
    General administrative expenses 12,000
    Debenture interest 2,000
    Royalties receivable 5,000
    Directors’ remuneration 84,000
    Bad debts 10,000
    Discounts allowed 14,000
    Discounts received 11,000
    Plant and machinery at cost (see note (iii)) 240,000
    Provision for depreciation: Plant and machinery (see note 72,000
    (iv))
    Motor vehicles at cost (see note (ii)) 120,000
    Provision for depreciation: Motors (see note (iv)) 48,000
    Goodwill 200,000
    Development costs 24,000
    Trade debtors 188,000
    Trade creditors 45,000
    Bank overdraft (repayable on demand) 7,000
    Bills of exchange payable (all due within 1 year) 7,000
    Debentures (redeemable in 3 years’ time) 30,000
    Preference dividend 12,000
    Ordinary dividend 40,000
    2,106,000 2,106,000

    Notes:
    (i) Stock of finished goods on 31 March 20X2 £163,000.
    (ii) Motor expenses and depreciation on motors to be apportioned: Distribution 4 /5,
    Administrative 1 /5.
    (iii) Plant and machinery depreciation to be apportioned: Cost of sales 7 /10, Distribution 1 /5,
    Administrative 1 /10.
    (iv)Depreciate the following fixed assets on cost: Motor vehicles 20 per cent, Plant and
    machinery 15 per cent.
    (v) Accrue corporation tax on profits of the year £38,000. This is payable on 31 December
    20X2.
    You are to draw up:
    (a) a detailed trading and profit and loss account for the year ended 31 March 20X2 for internal
    use, and
    (b) a profit and loss account for publication, also a balance sheet as at 31 March 20X2
    Sales 1,320,000
    Less: Return inward 34000

    Net Sales 1,286,000

    Less: Cost of Goods Sold


    Open stock 184,000
    Purchases 620,000
    Carriage Inward 6,000
    Wages (putting goods into saleable condition) 104,000
    Total Cost of Goods Available for Sale 914,000
    Less: Closing stock 163,000
    Cost of Goods Sold 751.000

    Gross Profit 535,000

    Less: Operating Expenses


    Wages warehouse staff 40,000
    Wages and salaries: Sales staff 67,000
    Wages and salaries: Administrative staff 59,000
    Motor Expenses (Distribution) 23,200
    Motor Depreciation 9,600
    General Administrative Expenses 12,000
    Bad Debts 10,000
    Interest on Debentures 2,000
    General Distribution 17,000
    Total Operating Expenses 239,800

    Net Profit Before other Income 295,200

    Add: Other Income


    Royalties Receivable 5,000
    Discounts Received 11,000
    Total Other Income 16,000

    NET PROFIT 311,200

    a) Trading Profit and Loss for Internal Use

    You might also like