Da Silva plc's outline balance sheet as at a particular date was as follows: The following information

Question:

Da Silva plc's outline balance sheet as at a particular date was as follows:

image text in transcribedimage text in transcribed

The following information is available:

(a) Depreciation has not been charged on office equipment with a carrying amount of £100,000. This class of assets is depreciated at 12 per cent a year using the reducing balance method.

(b) A new machine was purchased, on credit, for £30,000 and delivered on 29 September 2006 but has not been included in the financial statements. (Ignore depreciation.)

(c) A sales invoice to the value of £18,000 for September 2006 has been omitted from the financial statements. (The cost of sales figure is stated correctly.)

(d) A dividend of £25,000 had been approved by the shareholders before 30 September 2006, but was unpaid at that date. This is not reflected in the financial statements.

(e) The interest payable on the debenture for the second half-year was not paid until 1 October 2006 and has not been included in the financial statements.

(f) An allowance for receivables is to be made at the level of 2 per cent of receivables.

(g) An invoice for electricity to the value of £2,000 for the quarter ended 30 September 2006 arrived on 4 October and has not been included in the financial statements.

(h) The charge for taxation will have to be amended to take account of the above information.

Make the simplifying assumption that tax is payable shortly after the end of the year, at the rate of 30 per cent of the profit before tax.


Required:
Prepare a revised set of financial statements for the year ended 30 September 2006 incorporating the additional information in (a) to (h) above. Note: work to the nearest £1,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting For Decision Makers

ISBN: 9781405888219

5th Edition

Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor

Question Posted: