Question
SCOREBOARD LIMITED PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2018 Balance Sheet Accounts Section DEBIT CREDIT Ordinary share capital (R2 ea) 280 000 Ordinary share premium
SCOREBOARD LIMITED PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2018
Balance Sheet Accounts Section DEBIT CREDIT
Ordinary share capital (R2 ea) 280 000
Ordinary share premium 30 000
Retained Income 41 000
Loan from Umgeni Bank (18% p.a.) 27 000
Land and Buildings 360 000
Equipment 50 000
Accumulated depreciation on equipment 20 000
Inventory 82 000
Trade debtors 40 000
Allowance 1 500
Bank 16 300
Cash float 750
Petty cash 250
Trade creditors 12 800
SARS (Income tax) 7 000
Nominal accounts section
Sales 476 000
Sales returns 8 000
Cost of sales 208 000
Salaries and wages 90 000
Directors fees 17 000
Audit fees 4 000
Interest on loan 2 000
Credit losses 1 400
Rent income 9 900
Commission income 7 700
Packing material 2 600
Insurance 400
Sundry expenses 11 200
Dividends on ordinary shares (interim) 5 000
905 900 905 900
Adjustments to be effected on 28 February 2018
1. The following was found as per physical count.
1. 1. Trading Stock R80 300 1. 2. Packing Material R700 2. Depreciate equipment at 10% p.a. on the diminishing balance method. 3. Write of further credit losses of R2000. 4. Adjust allowance for credit losses to 5% of trade debtors. 5. Provide for the outstanding interest on loan. 6. Provide rates at 2% on value of land and buildings. 7. Final Dividends of 5 cents per share was declared on 28 February 2018 Income Tax is calculated 28% of net profit
REQUIRED: Use the information above and draw up the following:
1. STATEMENT OF COMPREHENSIVE INCOME
2. Assume that board of directors decide to plough back 60% of the net profit, how much would be paid out to shareholders?
Note: show all the working
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