Leaf PLC is a company which manufactures and delivers artificial plants and flowers to shops and offices. The following balances stood in the books at 30 June 19_7:

Additional information:
(1) During one of its deliveries to a department store a large plant was accidentally dropped from the first floor to the shopping area below.
It landed on a customer’s head causing internal head injuries. The.
company agreed to pay £50 000 as compensation. The directors have decided to treat this as an extraordinary loss.
The saving in tax as a result of the decrease in profit is £20 000.
(2) The directors propose to pay a final dividend of 10% to the ordinary shareholders.
(3) Fixed assets are depreciated by the straight-line method, using the following percentages:

(4) During the year:
- motor vehicles costing £80 000 were sold for £35 000. Accumulated depreciation on them was £50 000 - additional fixtures and fittings were purchased at a cost of £20 000.

(5) Stock at the year-end consisted of:

(6) At the year-end:
rent and rates prepaid amount to £3 000 £2 000 has been prepaid for hire of plant £5 000 of office salaries remain outstanding corporation tax of £10 000 is still owing (7) Leaf PLC hotds 300 000 ordinary shares of £1 each in Green Ltd., which represents 35 per cent of the equity, and 500 000 preference shares of £0.50 in Twig plc, which represents 7 per cent of the preference shares. The current market value of the investment in Green Ltd. is £370 000, in Twig plc 200 000.
(8) At the year-end £15 000 ordinary dividend remained owing from Green Ltd.
(9) The authorized share capital of the company is £200 000 10 per cent preference shares’ of £1 each and 600 000 ordinary shares of £1 each.
(10) The directors have decided to create a general reserve of £100 000.
You are required to prepare the final accounts of Leaf pic for the year ended 30 June 19_7 in accordance with the Companies Acts 1948-85, in so far as the available information permits.

Transcribed Image Text:

000 Turnover 2.000 "Purchase of raw materials 380 Factory wages 400 Factory overheads 205 Hire of plant 42