questions from 16-21

Trial balance 31 December 20X5 Dr S'000 Cr S'000 28,600 Sales revenue Purchases Inventory at 1 January 20X5 Storage costs Salespersons' salaries and commission Administrative salaries General administrative expenses General distribution expenses Directors' remuneration Loan interest paid Dividends paid Non-current assets aggregate depreciation, 1 January 20X5 Trade accounts receivable and payable Allowance for doubtful debts at 1 January 20X5 Balance at bank 10% Loan (repayable 20X9) Issued share capital (4m ordinary shares) Share premium account Retained profit, 1 January 20X5 Suspense account (see Note 3 below) 18,000 4,500 850 1,850 3,070 580 490 870 100 40 18,000 cost 3,900 6,900 3,800 200 2,080 1,000 4.000 1,300 8,720 1.650 55,250 55.250 The following further information should be allowed for: 1 2 3 Inventory at 31 December 20X5 amounted to $5 million. A review of the trade accounts receivable total of 56,9 million showed that it was necessary to write off debts totalling $0.4 million, and that the allowance for doubtful debts should be adjusted to 2% of the remaining balances. Two transactions have been entered in the company's cash record and transferred to the suspense account shown in the list of account balances. They are: (a) The receipt of $1.5 million from the issue of 500,000 S1 ordinary shares at a premium of $2 per share. (b) The sale of some surplus plant. The plant had cost Slmillion and had a written down value of $100,000. The sale proceeds of $150,000 have been credited to the suspense account but no other entries have been made. Depreciation should be charged at 10% per annum on cost at the end of the year and allocated to cost of sales. The directors propose a final dividend of four cents per share on the shares in issue at the end of the year. (In accordance with IAS 10 Events after the Reporting Period this proposed dividend should be disclosed by note). 4 5 6 Accruals and prepayments still to be accounted for are: Prepayments $'000 70 General administrative expenses General distribution expenses Accruals S'000 140 90 230 19999 40 110 7 Ignore taxation Now please answer questions 16 to 21 How much is the Depreciation charge for the year ended 31 December 20X52.16 All figures in '000 A. $7,100 O B. $1,700 O C. $3,900 O D. $4,000 O What is the profit or loss of the disposal of non-current assets for the year .17 * ended 31 December 20X5: All figures in 'Ooo A. Loss of $50 O B. Loss of $70 O C. Profit of $50 O D. Profit of $ 150 What is the cost of sales for the year that ends 31 December 20X5? Assume 18 that Bad Debts and any movement in bad debts Provision are Administration costs. All figures in '000 A. $19,150 O B. $29,150 O C. $14,150 O D. $24,150 O During the year ending 31 December 20X5: All figures in '000.19 A. Distribution Costs are $3,240 and Administration Costs are $3,920 O B. Distribution Costs are $2,240 and Administration Costs are $4,920 O C. Distribution Costs are $1,240 and Administration Costs are $3,920 O D. Distribution Costs are $3,240 and Administration Costs are $4,920 O Total Assets as at 31 December 20X5 amount to a book value of: All figures in 20 *'000 A $14,789 O B. $23,780 C. $45,778 D. $66,700 * As at 31 December 20X5.21 Ordinary Shares Share Premium Retained Earnings A $4,500,000 $2,300,00 $9.870,000 B $4,000,000 $2,000,000 $2,300,000 $5,000,000 $4,500,000 $4,000,000 D $3,000,000 $4,000,000 $4,500,000 B D