Question
The trial balance of Leaders International Limited, a company which sells plastic containers, as at 31 March 2018, is given below Allowance for receivables 3,000
The trial balance of Leaders International Limited, a company which sells plastic containers, as at 31 March 2018, is given below
Allowance for receivables |
|
3,000 |
Salaries and wages | 80,100 | |
Inventory at 1 April 2017 | 36,120 | |
Dividend paid | 4,200 | |
Purchases and Sales Administrative expenses | 442,618 46,580 | 747,253 |
Distribution costs General Reserve Land at cost | 33,115 110,000 | 4,800 |
Motor vehicles at cost | 32,860 | |
Motor vehicles accumulated depreciation at 1 April 2017 | 17,450 | |
1 Ordinary Shares | 50,000 | |
Retained Earnings Buildings at cost | 120,000 | 49,690 |
Buildings accumulated depreciation at 1 April 2017 | 18,380 | |
Bank Share Premium | 32,350 | 2,700 |
5% Loan notes Loan note interest | 2,000 | 90,000 |
Trade Receivables | 77,340 | |
Trade Payables | 34,010 | |
1,017,283 | 1,017,283 |
The following information should also be considered regarding Leaders International Limited:
Motor Vehicles are depreciated at 20% per annum using the reducing balance method.
i) Motor Vehicles are depreciated at 20% per annum using the reducing balance method.
ii) Buildings are to be depreciated at 3% per annum using the straight-line method.
iii) The closing inventory was valued at 54,890.
iv) Corporation tax on profits was estimated at 14,950.
v) Administrative expenses accrued were 3,600.
vi) A customer who owed 5,200 has gone bankrupt and Leaders International Limited has decided to treat the amount as a bad debt.
vii) Distribution costs prepaid amounted to 1,830.
viii) The allowance for receivables is to be adjusted to represent 5% of the trade receivables.
Required:
Prepare the following statements for Leaders International Limited:
a) Income Statement for the year ended 31st March 2018 (25 marks) b) Statement of Financial Position as at 31st March 2018 (25 marks)
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