OSTON De $ Credit on Depreciation April 2015 160.000 54,000 300.000 130.000 120.000 150,000 343 150 3.000 120,190 50.000 Provision for Depreciation 1 Apr 2018 was at 31 March 2019 de Receivables RYOntor Doubtfuldebts at 1 April 2016 Cash at Bank Trade Payable Share Capital (50.000 ordinary shares at $1.00 par) Preference Shares (100.000 preference shares at $1 par) Share Premium account General Reserves Retained Profit at 1 April 2018 Loan Payable Sales Equity dividends pald 5,000 Rent expense $54,440 Salary expense 80,000 Electricity expense 17,510 Administration expense 30,060 Selling expenses 60,190 Cost of Sales 803,920 Total 2,134,270 100,000 40,000 10.000 41.080 40,000 1,546,000 2,134,270 The following further information is available 1. A bad debt totalling $10,000 is to be written off and a provision for doubtful debts adjusted to 2% of the remaining trade recevables as at 31 March 2019 2. The loan was taken up on 1 January 2015. The full year's interest was paid on 1 April 2019 at an interest rate of 12% per annum. The loan is due for payment on the 31 December 2025 3. Depreciation is to be provided at the following rates per annum -Motor Vehicles 20% using the reducing balance method -Equipment 10% using the straight-line method. +-- 4. The corporation tax for the year is expected to be $50,000. The auditor has estimated that the audit fees should be for $25,000 for the year ended 31 March 2019. 5. Electricity expense of $1,000 for March 2019 remains unpaid at 31 March 2019. The rent account includes $4.000 paid for April 2019. - ppa 4 6. The year-end inventory count conducted on 31 March 2019, revealed inventory on hand of $250,000 at full market value. The company applies a gross margin of 50% on its sales. Any inventory loss should be debited to the Cost of Sales account. 7. The preference shares are redeemable as at 31 December 2025 and carry a fixed dividend rate of 5%. 8. $10,000 should be transferred from the Retained Profit to the General Reserve. quired: epare: Income Statement for the Year ended 31 March 2019 Statement of Financial Position as at 31 March 2019 Statement of Changes in Equity for the year-ended 31 March 2019 in a form suitable for presentation to the directors. THE END OSTON De $ Credit on Depreciation April 2015 160.000 54,000 300.000 130.000 120.000 150,000 343 150 3.000 120,190 50.000 Provision for Depreciation 1 Apr 2018 was at 31 March 2019 de Receivables RYOntor Doubtfuldebts at 1 April 2016 Cash at Bank Trade Payable Share Capital (50.000 ordinary shares at $1.00 par) Preference Shares (100.000 preference shares at $1 par) Share Premium account General Reserves Retained Profit at 1 April 2018 Loan Payable Sales Equity dividends pald 5,000 Rent expense $54,440 Salary expense 80,000 Electricity expense 17,510 Administration expense 30,060 Selling expenses 60,190 Cost of Sales 803,920 Total 2,134,270 100,000 40,000 10.000 41.080 40,000 1,546,000 2,134,270 The following further information is available 1. A bad debt totalling $10,000 is to be written off and a provision for doubtful debts adjusted to 2% of the remaining trade recevables as at 31 March 2019 2. The loan was taken up on 1 January 2015. The full year's interest was paid on 1 April 2019 at an interest rate of 12% per annum. The loan is due for payment on the 31 December 2025 3. Depreciation is to be provided at the following rates per annum -Motor Vehicles 20% using the reducing balance method -Equipment 10% using the straight-line method. +-- 4. The corporation tax for the year is expected to be $50,000. The auditor has estimated that the audit fees should be for $25,000 for the year ended 31 March 2019. 5. Electricity expense of $1,000 for March 2019 remains unpaid at 31 March 2019. The rent account includes $4.000 paid for April 2019. - ppa 4 6. The year-end inventory count conducted on 31 March 2019, revealed inventory on hand of $250,000 at full market value. The company applies a gross margin of 50% on its sales. Any inventory loss should be debited to the Cost of Sales account. 7. The preference shares are redeemable as at 31 December 2025 and carry a fixed dividend rate of 5%. 8. $10,000 should be transferred from the Retained Profit to the General Reserve. quired: epare: Income Statement for the Year ended 31 March 2019 Statement of Financial Position as at 31 March 2019 Statement of Changes in Equity for the year-ended 31 March 2019 in a form suitable for presentation to the directors. THE END