The following balances have been extracted from the books of Margo Ltd for the year to 31 January 2017: 

Additional information:

1 Corporation tax owing at 31 January 2017 is estimated to be £3000.

2 Margo Ltd’s authorised share capital is £75,000 of £1 ordinary shares.

3 A dividend of 10p per share is proposed.

Required:

Prepare Margo Ltd’s statement of profit or loss and statement of retained earnings for the year to 31 January 2017 and a statement of financial position as at that date.  

Transcribed Image Text:

Cash at bank and in hand Plant and equipment: At cost Accumulated depreciation (at 31.1.17) Retained earnings (at 1.2.17) Profit for the financial year (to 31.1.17) Share capital (issued and fully paid) Inventory (at 31.1.17) Trade payables Trade receivables Dr £ 5000 70000 17000 Cr £ 25000 15000 10000 50000 12000 20000 112000 112000