Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Kelly Ltd is a stationery manufacturer. For the year ended 31st December 202X, the following information is extracted from its balance sheet: Cost Detail

image text in transcribed

1. Kelly Ltd is a stationery manufacturer. For the year ended 31st December 202X, the following information is extracted from its balance sheet: Cost Detail Accumulated depreciation Warehouse 180,000 40,000 Plant and equipment 145,000 60,000 Machinery 165,000 45,000 Total Balance of retained profits from previous years stands at 160,000 Net profit for the year was 60,000 It has been agreed that a transfer to a general reserve of 55,000 is to be made Corporation tax of 16,400 is to be paid on the year's profit It has been agreed that a dividend of 10% is to be paid in the issued share capital of 150,000 Prepare Profit and Loss appropriation account for Troy Limited for the year ending 31 December 202X. 490,000 145,000 Warehouse is depreciated using straight-line method with an estimated useful life of 15 years Plant and equipment are depreciated using reducing balance method at a rate of 15%. Machinery is depreciated using reducing balance method at a rate of 12% Calculate depreciation for each category of non-current assets for Kelly Ltd for the year ended 31st December 202X. (9 marks) 2. Troy Limited is a telecommunications business. The following information is available for the year ended 31 December 202X (11 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Crossover Of Audit And Evaluation Practices Comparative Policy Evaluation

Authors: Maria Barrados, Jeremy Lonsdale

1st Edition

1032173874, 978-1032173870

More Books

Students also viewed these Accounting questions