Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help ABC Limited was incorporated in 2010 with an authorized capital consisting of 40000000 ordinary shares. You have been asked to help prepare the

image text in transcribed

image text in transcribed

Please help

ABC Limited was incorporated in 2010 with an authorized capital consisting of 40000000 ordinary shares. You have been asked to help prepare the financial statements of ABC Ltd for the year 31 December 2020. The company's trial balance as at 31 December 2020 is shown below: Additional information: 1. The share capital of the company consists of ordinary shares with a nominal value of N$1 each. 2. The inventories at the close of business on 31 December 2022 were valued at N\$9 974000 , this consists of: 3. The company paid N$1440000 for one year's insurance on 1 February 2020 , this is due to expire on 31 January 2021 . This should be allocated to administration. 4. The company hired vehicles to distribute finished goods locally. It was able to negotiate a deal with a local company for the period 1 September to 30 November 2020 at a cost of N\$198 000. This was invoiced on 6 December 2020 and paid in full on 1 March 2021 . No entry has been made in the accounts. 5. Interest on the bank loan for the last six months of the year has not been included in the accounts in the trial balance. 6. Depreciation for the year amounts to N$300000, a half of this amount is to be apportioned to cost of sales and the remaining balance equally between distribution costs and administrative expenses. 7. The company made a bonus issue of 2500000 ordinary shares out of retained earnings but has not made any accounting entries for this. 8. The tax charge for the year has been calculated as N$1960000

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

A Guide To Local Environmental Auditing

Authors: Hugh Barton; Noel Bruder

1st Edition

1853832340, 9781853832345

More Books

Students also viewed these Accounting questions

Question

Question 18 of 18 Answered: 1 week ago

Answered: 1 week ago