Question 1 (25 marks) The following information relates to Snowfield plc. Trial Balance as at 28/2/2018 Debit COOO 5,360 Credit OOO 160 1.800 470 2,420 Administration expenses Bank overdraft Cash and cash equivalents Debenture Debenture interest EVILGIU ADB 9 21 Debenture Redemption Reserve Distribution expenses 2.760 Dividend 650 Inventory 995 Plant & Equipment - accumulated depreciation Plant & Equipment -cost 6.680 Profit reserve Property 13,700 Provision for bad debts Purchases OLLAND 12,800 Revaluation reserve Sales Revenue Share capital (3 million ordinary shares 3.00 per share) Share premium Taxation 35 Trade payables Trade receivables 1,900 45,000 980 90 960 23,500 9,000 4,300 1,320 45,000 Adjustments yet to be processed: & snow 1. A stock count valued closing inventory at 1945,000 2. Administration expenses outstanding at the end of year amounted to 140,000. 3. Distribution expenses prepaid at the end of year amounted to 160,000. wal 4. Depreciation of Plant and Equipment should be provided for at 10% per annum straleht line. 5. The provision for bad debts should be maintained at 4% of trade receivables. 6. Interest of 6% p.a. has been agreed in relation to the debenture loan. 7. Additional corporation tax of C150,000 must be provided for. 8. A transfer of 90,000 to the debenture redemption reserve should be made. 9. An independent valuation certified that property was valued at 14,000,000. 10. A dividend of 60.22 cents per share will be proposed by the directors at the next AGM. Required a) A Statement of Profit or Loss for year ending 28/2/2018 b) A Statement of Changes in Owners' Equity for year ending 28/2/2018 c) A Statement of Financial Position as at 28/2/2018 (8 marks) (5 marks) (12 marks) Question 1 (25 marks) The following information relates to Snowfield plc. Trial Balance as at 28/2/2018 Debit COOO 5,360 Credit OOO 160 1.800 470 2,420 Administration expenses Bank overdraft Cash and cash equivalents Debenture Debenture interest EVILGIU ADB 9 21 Debenture Redemption Reserve Distribution expenses 2.760 Dividend 650 Inventory 995 Plant & Equipment - accumulated depreciation Plant & Equipment -cost 6.680 Profit reserve Property 13,700 Provision for bad debts Purchases OLLAND 12,800 Revaluation reserve Sales Revenue Share capital (3 million ordinary shares 3.00 per share) Share premium Taxation 35 Trade payables Trade receivables 1,900 45,000 980 90 960 23,500 9,000 4,300 1,320 45,000 Adjustments yet to be processed: & snow 1. A stock count valued closing inventory at 1945,000 2. Administration expenses outstanding at the end of year amounted to 140,000. 3. Distribution expenses prepaid at the end of year amounted to 160,000. wal 4. Depreciation of Plant and Equipment should be provided for at 10% per annum straleht line. 5. The provision for bad debts should be maintained at 4% of trade receivables. 6. Interest of 6% p.a. has been agreed in relation to the debenture loan. 7. Additional corporation tax of C150,000 must be provided for. 8. A transfer of 90,000 to the debenture redemption reserve should be made. 9. An independent valuation certified that property was valued at 14,000,000. 10. A dividend of 60.22 cents per share will be proposed by the directors at the next AGM. Required a) A Statement of Profit or Loss for year ending 28/2/2018 b) A Statement of Changes in Owners' Equity for year ending 28/2/2018 c) A Statement of Financial Position as at 28/2/2018 (8 marks) (5 marks) (12 marks)
