Question
Q Kings Cross Co. Land and buildings 110,000 Share capital 150,000 Machinery 50,000 Retained profits 5,000 Vehicles 25,000 Loans (10%) 20,000 Inventory at end of
Q
Kings Cross Co.
Land and buildings 110,000 Share capital 150,000
Machinery 50,000 Retained profits 5,000
Vehicles 25,000 Loans (10%) 20,000
Inventory at end of the year 30,000 Creditors 50,000
Debtors 35,000
Cash at bank 10,000
Total Assets 260,000 Total shareholder's equity and liabilities 225,000
Cost of goods sold 90,000 Sales 160,000
Wages 20,000
Rent, insurance,
sundry expenses 15,000
Total 125,000 Total 160,000
The above information has been taken from the companys books as at 31 December
20X7, but the following have not yet been allowed for:
(a) Rent owing but not yet paid amounting to A1,000.
(b) Insurance paid includes A3,000 which relates to next year.
(c) Audit fees not yet included and not yet paid are A1,500.
(d) Machinery and vehicles are to be depreciated by 10%.
(e) Land and buildings have been revalued at A150,000.
(f) Interest on the loans has not yet been paid.
Record the appropriate adjustments on the quadrant and draw up the balance sheet
and income statement.
2.4 Kings Happy Co.
Sales 147,500
Land and buildings 60,000
Plant and machinery 40,000
Purchases 50,000
Wages and salaries 41,000
Salesmens commission 6,000
Vehicles 30,000
Share capital 150,000
Inventory at start of year 20,000
Debtors 20,000
Rent, insurances, sundry expenses 8,500
Cash discounts allowed 1,500
Shares in listed company 40,000
Cash at bank and in hand 25,500
Creditors 37,000
Retained profits 6,000
Dividends received from listed investment 2,000
The above information has been taken from the companys books as at 31 December
20X7, but the following has not been allowed for:
(a) Inventory at the end of the year is A25,000.
(b) Audit fees owing amounted to A500.
(c) Machinery and vehicles are to be depreciated by 10% and 20% respectively.
Satisfy yourself that total sources equal total applications before making necessary
adjustments for (a)(c). Then draw up the balance sheet and income statement.
2.5 Kingsad Co.
Land and buildings 100,000
Share capital 100,000
Plant and machinery 50,000
Retained profits at 1 January 20X7 46,000
Purchases 70,000
Sales 150,000
Inventory at 1 January 20X7 30,000
Wages and salaries 40,000
Sales returned by customers as unacceptable 1,000
General expenses 10,000
Debtors 25,000
Creditors 30,000
This information has been taken from the companys books as at 31 December 20X7,
but the information below has not been allowed for:
(a) Inventory at 31 December 20X7 is A20,000.
(b) Plant and machinery is to be depreciated by 10%.
(c) Land and buildings is to be revalued to A150,000.
(d) General expenses includes an insurance charge of A1,000 covering the period
1 July 20X7 to 30 June 20X8.
(e) A debtor for A1,000 has gone bankrupt.
Using the quadrant format, incorporate the additional information, and prepare the
closing balance sheet and income statement.
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