Prepare a Statement of Profit or Loss for the company for the year ended 31st December 2018.

 

9. The following is the trial balance of Pebbles Limited at 31st December 2019. Dr Cr 000 000 Accounts Payable 203 Accounts Receivable 406 Administration expenses 89 Bad debts 12 Cash and Bank 207 Commission 21 Dividend 108 Insurance 20 Interest 3 Inventory 226 Long term loan (8%) Motor vehicles - cost Motor vehicles - depreciation Plant and machinery - cost 75 668 308 1450 Plant and machinery depreciation 420 Proceeds from asset sale Proceeds from issue of shares 184 Provision for Doubtful Debts 4 Purchases 1887 Rent 24 Retained profit 836 Sales 3010 Selling expenses Share capital (par value 1.00) 124 200 5,245.0 5,245.0 NOTE i) The value of inventory at 31st December 2019 was 277,000. An invoice for Selling Expenses of 3,000 covering the period from the beginning of November 2019 to the end of January 2020 was received in January 2020. An invoice for Commission of 16,000 covering the period from the beginning of November 2019 to the end of February 2020 was received in October 2019. A debt of 6,000 is to be written off at the year end. The company decides that a provision for doubtful debts is needed of 1 percent. Plant and Equipment is depreciated on a Straight Line basis at 8% per annum. A motor vehicle originally costing 18,000 was sold for 5,000. During 2019 there were no other disposals of assets, and no non-current assets were bought. Vehicles are depreciated at 20% per year, with no depreciation charged in the year of disposal. Accumulated depreciation on Vehicles at 31 Dec 2019 was 422,000 There was an interim dividend paid of 39,000 (2018: 29,000) and a final dividend was proposed of 91,000 (2018: 69,000). 80,000 additional shares were issued at a premium of 1.30 per share. Tax for the year amounts to 95,000. ii) ii) iv) v) vi) vii) viii) ix) x)