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Trial Balance of Leisure Hotels as at June 30 Debit Credit $ $ Issued 7% preference share capital $1 each 70,000.00 Issued ordinary share capital
| Trial Balance of Leisure Hotels as at June 30 | |||
| Debit | Credit | ||
| $ | $ | ||
| Issued 7% preference share capital $1 each | 70,000.00 | ||
| Issued ordinary share capital $1 each | 150,000.00 | ||
| 6% Debentures | 250,000.00 | ||
| Share premium | 50,000.00 | ||
| Buildings at cost | 550,000.00 | ||
| Furniture at cost | 70,000.00 | ||
| Equipment at cot | 60,000.00 | ||
| Opening inventory | 10,000.00 | ||
| Accumulated depreciation | |||
| Furniture | 25,000.00 | ||
| Equipment | 20,000.00 | ||
| Director's remuneration | 50,000.00 | ||
| Wages and salaries | 252,000.00 | ||
| Motor expenses | 15,000.00 | ||
| Rates and insurance | 12,000.00 | ||
| Sales | 590,000.00 | ||
| Purchases | 158,900.00 | ||
| General expenses | 20,000.00 | ||
| Advertising | 32,000.00 | ||
| Audit fees | 10,000.00 | ||
| Debenture interest paid | 2,100.00 | ||
| Accounts receivables | 13,000.00 | ||
| Accounts payables | 27,000.00 | ||
| Bank Overdraft | 15,000.00 | ||
| General reserve | 30,000.00 | ||
| Dividend paid | 5,000.00 | ||
| Retained profits as at the beginning of the year | 33,000.00 | ||
| 1,260,000.00 | 1,260,000.00 | ||
| Additional Information | |||
| 1. Inventory counted and valued on 30 June amounted to $8,000. | |||
| 2. Insurance includes $3,000 of cover that relates to the following year. | |||
| 3. Wages owing at 30 June amounts to $5,000 | |||
| 4. A provision for bad debts is to be created at a level of 2% of debtors | |||
| 5. It is the policy of the business to depreciate furniture at 10% per annum using the straight-line | |||
| method. Equipment is to be depreciated at 20 per cent. | |||
| 6. Corporation tax of $3,500 is to be provided for. | |||
| 7. The directors have proposed the following: | |||
| Preference dividends are to be provided for. | |||
| $5,000 is to be transferred to a general reserve | |||
| 6. Transfer of $3,000 to a general reserve account. | |||
| 8. The authorised share capital of the company is 100,000 preference shares and 250,000 ordinary | |||
| shares both having a nominal value of $1. | |||
| 9. At the year-end the company issued to a private investor 50,000 additional ordinary shares | |||
| at a premium of $1.75, the company receiving the money in full. The company used $50,000 | |||
| from the issue of shares to pay off part of the debenture loan. Neither of these transactions | |||
| has been accounted for. | |||
| Required | |||
| a) Prepare a statement of comprehensive income for the year ended 30 June | |||
| b) Prepare a statement of changes in equity for the year ended 30 June | |||
| c) Prepare a statement of financial position as at 30 June | |||
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