BELOW IS AN OUTLINE FOR THE COMPANY ACCOUNT FOR THE INCOME STATEMENT (TP & L ) AND STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) :
BECHE Limited sell sportswear throughout South Cheshire, ownng a series of outlets in Crewe, Nantwich and Chester. AUTHORISED SHARE CAPITAL 100,000 Ordinary 1 Shares 8,000 6% Preference Shares Trial Balance as at 31st December 2010 Debit Credit Ordinary Share Capital 50,000 6% Preference Shares 8,000 Plant & Machinery (cost) 24,000 Motor Vehicle (cost) 6,000 Creditors 17,870 Debtors 34,980 35,585 Bank 5% 10 year debenture 9,000 Stock 1st January 2003 5,200 Motor Expenses 11,020 Sales 232,834 Bad debts 2,400 Debenture interest 225 Purchases 165,214 Discount received 640 Wages and salaries 24,210 Insurance 300 Provision for depreciation: Plant and machinery 6,000 1,200 Motor vehicles Director's salaries 17,000 Interim preference dividend 240 Profit and loss account 300 Provision for bad debts 530 326,374 326,374 Notes: 1. Depreciation on fixed assets is at the rate of 20% per annum straight line vehicles are to be calculated reducing balance. 2. Provision for bad debts is to be increased to 1,000 3. Stock 31st Dec. 2010- 8,247. 4. The directors propose to pay an ordinary dividend of 10% to the ordinary shareholders and to pay the remaining dividend due to the preference shareholders. 5. The corporation tax has been calculated at 1,500. 6. Bad debts are to be written off. Pou are required to: 1. Produce a trading profit and loss, appropriation account and balance sheet for BECHE Limited for period ending 31 December 2010. XXYZ LTD Trading, Profit and Loss Account for the year ended June xxxxx Sales XXXXX Less Cost of Sales: Opening Stock XXXXXX Add/Purchases XXXXXX Cost of Goods Available XXXXXX Less/ Closing Stock (xxxxxx) (xXxxx) Gross Profit XXXXXX Add revenue: eg. Discount received/reduction in provision XXXXX Less Expenses: Motor Expenses XXXXX Repairs to machinery XXXXX Wages XXXXX Increase in Provision for Bad Debt XXXX Director's Remuneration XXXXX Depreciation: XXXX (xxxxx) Net Profit before interest and tax XXXXX Less Debenture interest X$xx) Net Profit before Tax Less Corporation Tax (xxxxx Net Profit after interest and tax 213 words XXXXX Less Appropriation: Add Retain profits B/F XXXXX Xxxxx Less: Transfer to General Reserve XXXXX Ordinary Dividend XXXXX (xxxxx) Profit and loss C/F XXXXX == == = = XYZ LTD Balance Sheet as at xxxxx Fixed Assets Cost Prov for Depr. NBV Equipment XXXX XXXX XXXX Motor Vehicle XXXX XXXX XXXXX XXXX XXXX XXXX Current Assets: Stock XXXX Debtors XXXX Bank XXXX XXXX Less Current Liabilities: Creditors XXXXX Accruals XXXX Corporation tax owing XXXX Debenture interest owing XXXX Proposed Dividend XXXX (xxxxx) Working Capital XXXXX XXXXX Less: Long term Liability Debenture (xxxx) XXXXX Financed By: Authorized and Issued Share Capital XXXX Reserves: General Reserves XXXX Foreign Exchange reserves XXXX Profit and Loss C/F XXXXX XXXXX BECHE Limited sell sportswear throughout South Cheshire, ownng a series of outlets in Crewe, Nantwich and Chester. AUTHORISED SHARE CAPITAL 100,000 Ordinary 1 Shares 8,000 6% Preference Shares Trial Balance as at 31st December 2010 Debit Credit Ordinary Share Capital 50,000 6% Preference Shares 8,000 Plant & Machinery (cost) 24,000 Motor Vehicle (cost) 6,000 Creditors 17,870 Debtors 34,980 35,585 Bank 5% 10 year debenture 9,000 Stock 1st January 2003 5,200 Motor Expenses 11,020 Sales 232,834 Bad debts 2,400 Debenture interest 225 Purchases 165,214 Discount received 640 Wages and salaries 24,210 Insurance 300 Provision for depreciation: Plant and machinery 6,000 1,200 Motor vehicles Director's salaries 17,000 Interim preference dividend 240 Profit and loss account 300 Provision for bad debts 530 326,374 326,374 Notes: 1. Depreciation on fixed assets is at the rate of 20% per annum straight line vehicles are to be calculated reducing balance. 2. Provision for bad debts is to be increased to 1,000 3. Stock 31st Dec. 2010- 8,247. 4. The directors propose to pay an ordinary dividend of 10% to the ordinary shareholders and to pay the remaining dividend due to the preference shareholders. 5. The corporation tax has been calculated at 1,500. 6. Bad debts are to be written off. Pou are required to: 1. Produce a trading profit and loss, appropriation account and balance sheet for BECHE Limited for period ending 31 December 2010. XXYZ LTD Trading, Profit and Loss Account for the year ended June xxxxx Sales XXXXX Less Cost of Sales: Opening Stock XXXXXX Add/Purchases XXXXXX Cost of Goods Available XXXXXX Less/ Closing Stock (xxxxxx) (xXxxx) Gross Profit XXXXXX Add revenue: eg. Discount received/reduction in provision XXXXX Less Expenses: Motor Expenses XXXXX Repairs to machinery XXXXX Wages XXXXX Increase in Provision for Bad Debt XXXX Director's Remuneration XXXXX Depreciation: XXXX (xxxxx) Net Profit before interest and tax XXXXX Less Debenture interest X$xx) Net Profit before Tax Less Corporation Tax (xxxxx Net Profit after interest and tax 213 words XXXXX Less Appropriation: Add Retain profits B/F XXXXX Xxxxx Less: Transfer to General Reserve XXXXX Ordinary Dividend XXXXX (xxxxx) Profit and loss C/F XXXXX == == = = XYZ LTD Balance Sheet as at xxxxx Fixed Assets Cost Prov for Depr. NBV Equipment XXXX XXXX XXXX Motor Vehicle XXXX XXXX XXXXX XXXX XXXX XXXX Current Assets: Stock XXXX Debtors XXXX Bank XXXX XXXX Less Current Liabilities: Creditors XXXXX Accruals XXXX Corporation tax owing XXXX Debenture interest owing XXXX Proposed Dividend XXXX (xxxxx) Working Capital XXXXX XXXXX Less: Long term Liability Debenture (xxxx) XXXXX Financed By: Authorized and Issued Share Capital XXXX Reserves: General Reserves XXXX Foreign Exchange reserves XXXX Profit and Loss C/F XXXXX XXXXX
