Question
Please solve ASAP with all requirements not parts please all The following is the trial balance of Pyramid Ltd as at 30 November 2021. Debit
Please solve ASAP with all requirements not parts please all
- The following is the trial balance of Pyramid Ltd as at 30 November 2021.
| Debit | Credit |
| ||
Sales |
| 2,465,000 |
Other operating income |
| 25,000 |
Inventory at 1 December 2020 | 367,000 |
|
Purchases | 1,245,000 |
|
Administration expenses | 198,000 |
|
Distribution expenses | 75,000 |
|
Marketing expenses | 298,200 |
|
Salaries | 412,000 |
|
Rent | 25,500 |
|
Energy | 15,300 |
|
Computer equipment - cost | 405,000 |
|
Computer equipment - accumulated depreciation |
| 230,000 |
Motor vehicles - cost | 265,000 |
|
Motor vehicles - accumulated depreciation |
| 146,000 |
Non-current investments | 26,000 |
|
Receivables | 388,000 |
|
Allowance for receivables |
| 13,000 |
Payables |
| 252,400 |
Cash and cash equivalents | 250,200 |
|
Ordinary 1 shares |
| 560,000 |
Share premium |
| 26,000 |
Retained earnings as at 1 December 2020 |
| 210,800 |
5% debentures |
| 76,000 |
Interim dividend paid | 13,000 |
|
Suspense account | 21,000 |
|
Total | 4,004,200 | 4,004,200 |
The following information is relevant:
- Closing inventory at 30 November 2021 is 375,000.
- On further investigation of the suspense account in the trial balance above, it was discovered that a cash payment made on 1 July 2021 of 21,000 posted to the suspense account represents the cost of purchase of computer equipment.
- Pyramid Ltd depreciates non-current assets as follows:
- computer equipment at 15 per cent on a straight line basis
- motor vehicles at 20 per cent on a reducing balance basis.
- Depreciation is charged on a monthly basis. No depreciation for the year ended 30 November 2021 has been entered into the accounting records.
- On 30 November 2021, Pyramid Ltd. decided to write off a trade receivable of
5,500 and to make an allowance for irrecoverable receivables of 3 per cent of the outstanding receivables at that date. No entries have been made in the nominal ledger accounts.
- A full years debenture interest is to be accrued.
- Energy costs have been paid up to 30 September 2021. The next invoice covering the period 1 October 2021 to 31 December 2021 is expected to be for about 5,200.
- On 1 July 2021 Pyramid Ltd paid 17,000 for rent to cover the period 1 July 2021 to 31 December 2021.
- For the financial year ended 30 November 2021, corporation tax is estimated to be 27,800 and the audit fee is estimated to be 8,000.
- Pyramid Ltd allocates expenses as follows:
- depreciation on motor vehicles is allocated to distribution expenses
- depreciation on computer equipment is allocated to administration expenses
- salary is allocated 80% to administration and 20% to distribution expenses
- energy expenses are allocated 70% to administration and 30% to distribution expenses
- rent is allocated to administration expenses.
Required:
Prepare an income statement for the year ended 30 November 2021 and a balance sheet as at 30 November 2021 for Pyramid Ltd.
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