Question

Success Limited is a retailer of Kitchenware. Most goods it trades are purchased from various suppliers in a finished form. In addition, the company manufactures several types of kentles The bookkeeper drew up the following trial balance 30 April 1996: 200.000 23.000 164,000 120.000 400.000 100.000 Ordinary share capital of $1 cach General reserve Retained profits 15% long-term lixan Machinery-at cost - accumulated depreciation as at 1 May 1995 Motor vehicles -at cost Stocks at 1 May 1995 Raw materials Manufactured goods Other goods Debtes Creditors Bank 160,000 20.000 10,000 170.000 160,000 48.000 50.000 2,200,000 +30.000 1.150.000 257,000 Purchases - Raw materials - Other goods Salaries Rent and rales Electricity Interest on loan Sundry expenses 22000 10.500 9.000 7,100 2.855,600 2.855,600 Additional information: Depreciation is to be provided using the reducing balance method at the following rates: Motor vehicles - 12.5% per annum Machinery - 10% per annum The motor vehicle was purchased in 1996. It is the company's policy to charge full rear's depreciation in the year of acquisition ii) Salaries include wages of $54,000 paid to the kettle-making employees. (iii) Rates prepaid at 30 April 1996 amounted to 52.000. (iv) Accruals at 30 April 1996 were: Electricity S1,500 v The apportionment of rent and rates and electricity to the kettle-making department is 25% (vi) Stocks at 30 April 1996 were: Raw materials 40.000 Manufactured goods 12 500 Other goods 215,000 (vii) The directors proposed to transfer 440,000 of the profits to general reserve and to declare a final dividend of $0.50 per share.

please solve this requirment

Answer 1

Balenie shaped 1996; 1 Edmisty & liability to shareholder fund (as share Capital (b, Rectaind probiet & General Reserve the long deam liability உல 14.690 606900 120060 ல (3 & Coulent liability I & Grural electriedy 2 intenton loon & Gesitos (a proposed Dividend (20000 x 0.5) 150D 9000 1100000 158500 Motor vehicle 22600 & Peoperty Plant & conipment dar tangible Assets machinery 262500 144000 406500 5 Comment Assets 16000o| Hon Brank ல Le stock 26750 ſo Peepaid Rent Portal * 6 in Difference in terial Belance's too on drobility side. So we assumed that we have taken Debosite as Sephority of bon loom a partie. 2000 499 500 1887000

19 Tanding all her for the your entity 30-4-1996 To openly starle by Sale 2200 000 Rim 2000 closing Stock More Good 100 RIM 40000 orthe Greed 120000 20000 M, Geod 2500 To Good 215000 267500 Towages 5400! To Prechase RM 430000 of Goods 1 150,00 15,89000 To Direct Exp i 8000 To Gloss profit bao 2467500 - 2467600 Profit & loss cale To Salaries 203,000 by Conoss Perfis 6950 To Deprecational machins 37500 Motor velice I Govo 53500 To Renti & Rates 1500 To electricity gooo To interest on loan 18000 To Sunday Exp. I To Net profit 319900 625500 1625500 7100

C Deporciation Machinery (nooow-loocor) 1/25 s. – 34500 grator vehicle 160000 xlox. - 16000 Disert salan 54000 in Direct Selay 23 erro 257000 Prepaid Pates 2000 tears fa to pk 20000 Total Rent Rats 8 22000 taxes 25t 5000 for fortasy (Dised Exp Art. 15000 far trading been 20000 Co Acewal of deededcity, 1500 elecderity bill has – 10500 the you totul bill for the year 12000 (u pros electricity at 3000 hae lorers) - 9ooo 12000 est 3000 Char Cores) (lor leading lien) Heded cteding for Rent (see in ) Clor-leading

un Greneral Reserve To Peop. Die to be op. baler 23000 56100 by a 4 your to Calence all I retaining f. ek uoogool 67000 47oong pertainly Peofort all To G.R. 44oooo l be of balan To Prop. Dhun 43goo by Plan 16400 319900 7483900 1483900

your trial balance is defective. the liabiality side is lower of 600 so it is deposite security by party.