Question
The following trial balance has been extracted from the books and records of Tom and Jerry Limited (T&J Ltd), a registered company, on the 31st
The following trial balance has been extracted from the books and records of Tom and Jerry Limited (T&J Ltd), a registered company, on the 31st March 2020: Premises at cost 175,000 Delivery Vehicles at cost 25,000 Trade Receivables/Payables 24,250 44,320 General expenses 34,450 Inventory at 1st April 2019 43,500 Cash at bank and in hand 57,105 Accumulated depreciation on fixtures and fittings at 1st April 2019 28,500 Retained profit as at 1st April 2019 23,425 Purchases of inventory 245,325 Accumulated Depreciation on delivery vehicles at 1st April 2019 9,000 Wages and salaries 61,255 Revenue 482,905 Interim dividends paid 10,000 Ordinary shares valued at 0.50 each as at 1st April 2019 150,000 5% Debenture redeemable in 2025 50,000 Rental and insurance 32,000 Vehicle expenses 23,265 Fixtures and Fittings at cost 57,000 TOTAL 788,150 788,150 Additional information is: - Corporation tax is charged at 21%. The directors proposed and agreed a final ordinary dividend of 5 pence per ordinary share for shareholders at 31st March 2020. Inventory at 31St March 2020 was valued at 57,500. Page 3 of 5 Please Turn Over Depreciation is to be provided on a 10% reducing balance basis for the year for delivery vehicles and 20% on cost for fixtures and fittings. General expenses contain an invoice for 630 for the quarter ending 30th April 2020 Decembers wages and salaries of 36,500 have not yet been accounted for in the trial balance and will be paid on 18th April 2020. Required: Using international accounting standards (IAS) produce the following financial statements: (a) The statement of profit or loss for the year ended 31st March 2020. [5 marks] (b) The statement of changes in equity for the year ended 31st March 2020. [5 marks] (c) The statement of financial position as at 31st March 2020. [15 marks] (d) All your workings as notes to the accounts. [25 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