Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information has been extracted from the books of Handy Limited as at 31 March 2005: Dr Cr f f Bank 2000 Capital: 100,000
The following information has been extracted from the books of Handy Limited as at 31 March 2005: Dr Cr f f Bank 2000 Capital: 100,000 issued and fully paid ordinary shares of 1 each 100000 50000 issued and fully paid 8% preference shares of 1 each 50000 Debenture loan stock (10%, repayable 2020) 30000 Debenture loan stock interest 3000 Dividends received 700 Dividends paid: Ordinary interim 5000 Preference 4000 Freehold land at cost 200 000 Investments (listed: market value at 31 March 2005 was 11000) 10000 Office expenses 47000 15000 Motor van at cost Motor van: accumulated depreciation at 1 April 2004 6000 Motor van expenses 2700 Purchases 220000 Retained Profits at 1 April 2004 9000 Sales 300000 Share premium account 10000 Stocks at cost (at 1 April 2004) 20000 Trade creditors 50000 Trade debtors 27000 555700 555700 Additional information: 1. The stocks at 31 March 2005 were valued at cost at 40000 2. Depreciation is to be charged on the motor van at a rate of 20 per cent per annum on cost. No depreciation is to be charged on the freehold land. 3. The corporation tax for the year has been estimated to be 10000 4. The directors propose a final ordinary dividend of 10 p per share 5. The authorized share capital of the company is as follows: a) 150000 ordinary shares of 1 each: and b) 75000 preference shares of 1 each Required Prepare a) Handy limited's trading and profit and loss account for the year to 31 March 2005 b) A balance sheet as at that date. (20 marks) 2 INSTRUCTIONS Font: Times New Roman Bibliography: Harvard Referencing System, not less than five (5) sources. The assignment should also include: Table of contents on its own page Introduction Main body, with subtitles and citations . Conclusion on its own page 12pt Spacing 1.5 III
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