Question C1 The following is a list of assets, liabilities and ownership interest of Tring Ltd at 1 January Year 5 when the company began to trade: - '000 250 Assets '000 Liabilities Plant and equipment 300 12% Debenture Year 15 Inventory 80 Investment in shares of Yellow and 20 Co. plc Cash and Bank 10 Ownership interest: shares 410 The company has an issued share capital of 160,000 1 Ordinary shares. 160 410 180 300 The following transactions were undertaken by Tring Ltd in the year to 31 December Year 5: 000 1. Goods for sale which cost 180,000 were removed from the company's store and delivered to customers 2. Some customers received goods from the company on credit terms with a sales price of 300,000. 3. Some customers received goods from the company with cash on 50 delivery with sales price of 50,000. 4. Payments of 270,000 were received by the company from 270 credit customers 5. The company purchased goods for sale from suppliers at as cost of 210,000 on credit terms. 6. The company made payments of 150,000 to suppliers for goods purchased on credit terms 7. The company has paid expenses during the year of 55,000 8. The company has incurred expenses of 5,000 during the year for which payment has not yet been made 9. The company receives dividends of 3,000 from its shares in Yellow and Co. plc 10. Interest of 15,000 covering the period up to 30 June Year 5 17 was paid in the year 210 150 55 5 3 The following information relates to adjustments that should be made at the end of year 5: i. Depreciation for the year should be calculated at the rate of 10% a year on plant and equipment ii. Debenture interest of 15,000 for the six months to 31 December Year 5 should be accrued. iii. Some items of slow moving stock held at 31 December Year 5 that cost the company 30,000 are found to have a net selling price of 23,000. Required (a) Using the accounting equation spreadsheet, record the effect of the above transaction of Tring Ltd for the year to 31 December Year 5 and the adjustments at 31 December Year 5. 22 marks And (b) From the spreadsheet prepare a statement of financial position (balance sheet) for Tring Ltd as at 31 December Year 5. 8 marks 30 marks Spreadsheet and partly completed financial statements for C1 CT This Accounting suatlon Spreadsheet is for use in answering question Ting L. Ats Cash Man and mestimentare Receivables Payable ore Debenture event sares derton and and 1 Owners interest Share penses capital ver LOOO con DOO COCO LOOD 10 LOGO 300 2000 20 OOO BO DO 250 EODO 160 Balance 1/1/Tears Transaction 1. Cost of sales 2. Sale o credit 1. Se force 4. Payments from customers 5. Credit Payment to pl 7. Cash Adexen 9. Dividends received 10. Interest Ada Depreciation Accrued interest entory | Balance at Nears am Tring Statement of financial position palance sheet as at 31 December Years 2000 Non current assets E DOO Current assets Current les INoncurrentes Capital and reserve