Lindesay Trading pic

1. Closing inventory is £13.
2. The following are not recorded in the trial balance:

(a) Taxation payable £58.
3. Authorised share capital was £500 for ordinary share capital and £400 for preference share capital.
4. There was £45 owing for wages and salaries.
5. Debenture interest was £8.
6. Of the insurance £1 was prepaid.
7. The proposed auditors’ fees are £3.
8. A transfer to the general reserve was made of £16.
9. Depreciation is to be £17 on land and buildings and £60 on motor vehicles.
Required: Prepare for internal management purposes the trading, profit and loss and appropriation account for the year ended 31 March 2006 and the balance sheet as at 31 March 2006. Lindesay Trading pic does not currently draw up its internal accounts using International Financial Reporting Standards preferring to use UK National Standards.

Transcribed Image Text:

Trial Balance as at 31 March 2006 000 000 Ordinary share capital 425 Preference share capital Share premium account Revaluation reserve 312 18 27 General reserve as at 1 April 2005 13 Retained earnings as at 1 April 2005 17 Long-term loan 87 Land and buildings at cost 834 Patents 25 Motor vehicles at cost 312 Opening inventory as at 1 April 2005 10 Trade receivables 157 Trade payables 93 Bank 186 Electricity 12 Wages and salaries 183 Telephone Sales 5 1,500 Insurance 6 750 Purchases Other expenses Land and buildings accumulated depreciation as at 1 April 2005 125 25