Trial balance of Lister Limited at 30 June 2009

Carriage outwards 3,000

Bank 700

Trade creditors 13,900

Trade debtors 32,800

Directors' remuneration 5,500

Electricity and gas 2,800

Insurance 1,700

Plant and machinery - at cost: 42,000

Accumulated depreciation at 1 July 2008 15,200

Office expenses 4,900

Ordinary issued share capital 25,000

Dividend 625

Profit and loss account at 1 July 2008 13,200

Provision for doubtful debts 800

Purchases 124,000

Rent and rates 7,500

Sales 210,625

Stock at 1 July 2008 13,400

Motor vehicles: at cost 8,000

Accumulated depreciation at 1 July 2008 4,000

Wages and salaries 35,800

282,725 282,725

You are given the following additional information:

(i) Stock at 30 June 2009, valued at cost, amounts to £15,500.

(ii) Depreciation, using the reducing balance method, is to be provided as follows:

(a) Plant and machinery at 20 per cent.

(b) Motor vehicles at 25 per cent.

(iii) The provision for bad debts is to be equal to 5 per cent of outstanding

debtors as at 30 June 2009.

(iv) The insurance account includes £300 which covers the business from 1 July

2009 until 31 December 2009.

(v) Rent due but unpaid at 30 June 2009 amounts to £250.

(vi) The directors agreed to pay a dividend of 5 per cent for the year. This

includes the interim dividend already paid.

(vii) Lister Limited has an authorised capital of 200,000 50p ordinary shares.

Prepare trading and profit and loss account for the year ended 30 June 2009,

and a balance sheet as at that date

  

Question Five Brian is a sole trader. At 30 June 2000 the following balances have been extracted from his books: Sales Purchases Office expenses Insurance Wages Rates. Heating and Lighting Telephone Discounts allowed Opening stock Returns inwards Returns outwards Premises Plant and Machinery Motor Vehicles Debtors Bank balance Creditors Loan-long term loan Capital Drawings for the year Closing stock Sh. 47,600.00 22,850.00 1,900.00 700.00 7,900.00 2,800.00 1,200.00 650.00 1,150.00 500.00 200.00 150.00 40,000.00 5,000.00 12,000.00 12,500.00 7,800.00 3,400.00 10,000.00 60,000.00 4.000.00 550.00 Required: Construct a trial balance, from the above list of balances. (20 marks)