a. The authorized and issued share capital of Ozideli Limited comprised 400,000 ordinary shares of Le 1 each and 100,000 8% preference shares of Le 1 each. The trial balance at the end of the year was as follows:
Trial Balance as at 31st December 2018
Dr | Cr | |
Le | Le | |
Sales | 1,500,000 | |
Purchases | 1,000,000 | |
General expenses | 280,000 | |
Debenture interest | 8,400 | |
7% Debentures | 120,000 | |
Ordinary share capital | 400,000 | |
8% Peference share capital | 100,000 | |
Plant and machinery at cost | 160,000 | |
Motor vehicle at cost | 70,000 | |
Profit and loss account (31/12/17) | 8,600 | |
Creditors | 172,400 | |
Debtors | 500,000 | |
General reserve | 10,000 | |
Provision for depreciation: | ||
Plant and Machinery; | 20,000 | |
Motor vehicle | 10,000 | |
Bank | 22,600 | |
Stock (31/12/17) | 300,000 | |
2,341,000 | 2,341,000 |
Additional information:
(i) Stock on hand at 31/12/2018 was Le 400,000;
(ii) The directors were to receive remuneration of Le 70,000;
(iii) Depreciation is to be calculated on plant and machinery at Le 32,000 and motor vehicle at Le 14,000;
(iv) The directors decided to transfer Le 12,000 to general reserve;
(v) Preference dividend for 2018 will be paid on 10/01/2019.
You are required to prepare:
Trading, Profit and Loss and Appropriation Account for the year ended 31st December 2018;
b. The authorized and issued share capital of Ozideli Limited comprised 400,000 ordinary shares of Le 1 each and 100,000 8% preference shares of Le 1 each. The trial balance at the end of the year was as follows:
Trial Balance as at 31st December 2018
Dr | Cr | |
Le | Le | |
Sales | 1,500,000 | |
Purchases | 1,000,000 | |
General expenses | 280,000 | |
Debenture interest | 8,400 | |
7% Debentures | 120,000 | |
Ordinary share capital | 400,000 | |
8% Peference share capital | 100,000 | |
Plant and machinery at cost | 160,000 | |
Motor vehicle at cost | 70,000 | |
Profit and loss account (31/12/17) | 8,600 | |
Creditors | 172,400 | |
Debtors | 500,000 | |
General reserve | 10,000 | |
Provision for depreciation: | ||
Plant and Machinery; | 20,000 | |
Motor vehicle | 10,000 | |
Bank | 22,600 | |
Stock (31/12/17) | 300,000 | |
2,341,000 | 2,341,000 |
Additional information:
(i) Stock on hand at 31/12/2018 was Le 400,000;
(ii) The directors were to receive remuneration of Le 70,000;
(iii) Depreciation is to be calculated on plant and machinery at Le 32,000 and motor vehicle at Le 14,000;
(iv) The directors decided to transfer Le 12,000 to general reserve;
(v) Preference dividend for 2018 will be paid on 10/01/2019.
You are required to prepare:
Balance sheet as at that date
a. TRADING ,PROFIT OR LOSS AND APPROPRIATION ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2018
Le | Le | ||
Opening stock | 300000 | Sales | 1500000 |
Add purchases | 1000000 | ||
1300000 | |||
Less closing stock | 400000 | ||
900000 | |||
Gross profit | 600000 | ||
1500000 | 1500000 | ||
EXPENSES: | |||
General expenses | 280000 | Gross profit | 600000 |
Debenture interest | 8400 | ||
Depreciation on plant & Machinery | 32000 | ||
Depreciation on motor vehicle | 70000 | ||
Net profit | 209,600 | ||
600000 | 600000 | ||
General reserve | 12000 | Net profit b/d | 209,600 |
Preference dividend | 8000 | Profit carried forward | 8600 |
Balance c/d( profit) | 184200 | ||
204200 | 204200 |
b.
BALANCE SHEET AS AT THAT DATE
Authorized Capital : | Le | Fixed Assets | Le | Le | Le |
Ordinary share | 400000 | Plant and Machinery | 160000 | 52000 | 108000 |
8% Preference share | 100000 | Motor Vehicle | 70000 | 24000 | 46000 |
Issued capital: | |||||
Ordinary share | 400000 | Current Assets | |||
8% Preference share | 100000 | Stock | 400000 | ||
Profit b/d | 124200 | Debtors | 500000 | ||
General reserve | 22000 | Bank | 22600 | ||
Long term liability: | |||||
7% debenture | 120000 | ||||
Current liability: | |||||
Creditors | 172400 | ||||
Director fee | 70000 | ||||
Proposed dividend | 12000 | ||||
1080600 | 1080600 |
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