Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 The following trial balance as at 31/12/2020 is for Splc (in 000s): Opening inventory Sales Purchases Receivables Payables Selling expenses Administration costs Distribution
Question 1 The following trial balance as at 31/12/2020 is for Splc (in 000s): Opening inventory Sales Purchases Receivables Payables Selling expenses Administration costs Distribution expenses Audit fee Bad debt Salaries and wages Directors' remuneration Debenture interest paid Freehold premises at cost Buildings at cost Buildings - accumulated depreciation Machinery at cost Machinery - accumulated depreciation Cash Bank 1 Ordinary shares 5% Debentures Retained profits Interim ordinary dividend paid 2000 20000 15200 1400 1000 700 400 200 70 30 900 300 60 6000 2400 400 3000 500 50 130 8000 1600 1390 50 32890 32890 Additional information as at 31/03/2020: Inventory was valued at 2,500,000. Administration expenses prepaid 100,000. Salaries accrued 30,000 and audit fee owed 20,000. Debenture interest owing 20,000 Machinery to be depreciated by 20% on reducing balance basis. Buildings to be depreciated by 5% on straight line The directors wish to provide 200,000 for taxation. The directors propose a final ordinary dividend of 3p per share. Required: a) Income Statement for the year ended 31/12/2020. [22 marks] b) Statement of Financial Position as at 31/12/2020. [18 marks]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started