Question

dumali b(no Ry tracted from the book wted by company The following information has 31 October 2016 Insurance Inver November 20X5 Eyes Dvd Awe or at levember 2005 Trades tes debits 31 ordinary shares com e rcitionat November 2005 Buildings Motor Vehicles Furniture and equipment Motorences Fundamental a y 31 2 75.000 .000 Bungee of cost. 31 October 2016 the bad were d 01 Movies 20% of y ou Nevestave been ad orded Tax of 150.000 s erved to the year During the 2016 bonus one for ten wasmase to ordinary shared . The been red e boi These premium was used for this purpose ed Prepare the following tements, or internal use The m ent of profit or loss for the year ended 31 October 2016 30 marks Thement of anca pontos as at 31 October 20X5

Answer 1

In the books of TONSON The Limited Liability Company Profit and Loss Accounts for the year ended 31 October 20X6 Particulatrs To Opening Stock Purchases Note Amount ($)('000) Particulatrs 350.00 By Sales 3,570.00 Less: Return Note Amount ($)('000) 5,780.00 95.00 5,685.00 " Gross Profit c/d 2,015.00 " Closing Stock 250.00 5,935.00 5,935.00 2,015.00 50.00 75.00 By Gross Profit b/d 60.00 " Discount Received 66.00 45.00 Nm 715.00 80.00 To Insurance General Expenses Energy Expenses Marketing Exp Wages and Salaries Telephone expenses Loan Note Interest Irrecoverable Debts Allowances for Receivable during the Depreciation Buildings @5% on Cost Motor Vehicles @ 20% on Carrying Amt Furniture and Fixture @ 20% on Cost 33.00 150.00 5.00 75.00 32.00 240.00 347.00 "Net Profit c/d 489.00 To Provision for Tax 2,065.00 150.00 By Net Profit b/d 2,065.00 489.00 "Net Profit (Transferred to Retained Earnings) 339.00 489.00 489.00

Balance Sheet as on 31st October 20X6 Note Note Amount ($) ('000) Liabilities Share Capital & Share Premium $1 Ordinery Shares Share Premium Amount ($) ('000) Assets Fixed Assets 1,980.00 20.00 Gross Fixed Assets (A) Land Building 315.00 Motor Vehicle 339.00 654.00 Furniture and Equipments Profits and Reserves Retained Earnings Add: Profit Transferred 740.00 1,900.00 240.00 1,200.00 4,080.00 Building Fund / Revaluation Reserve Less: Accumulated Depreciation 300.00 (B) Building Motor Vehicle 94.00 Furniture and Equipments 470.00 Loans Bank Loan 7% Loan Notes 435.00 112.00 660.00 1,207.00 NET FIXED ASSETS (A-B) 2,873.00 Current Liabilities & Provisions Trade Payables Allowances fro Receivable Outstanding Wages and Salaries 290.00 45.00 40.00 Current Assets 375.00 Trade Receivables Closing Stock 150.00 Prepaid Marketing Expenses 900.00 250.00 5.00 Provision for Tax 1,155.00 Cash & Cash Equivalent Cash 15.00 4,043.00 4,043.00

Amount ($)('000) Note Closing Stock is to be 1 valued at Cost or Net Realisable Value Valuation Value of Closing Stock at Less Damaged Goods 275.00 45.00 230.00 20.00 Add: NRV of Damaged 250.00 Marketing Expenses 2 Include Marketing Expenses for the month Total Marketing Less: Prepaid Charged to P&L Account 50.00 5.00 45.00 Carried forward to 5.00 Wages and Salaries Outstanding Wages & Salary Paid Add: Outstanding Charged to P&L Account 675.00 40.00 715.00 Carried forward to 40.00 45.00 Allowances for Receivable during the Required Allowance Receivable at the year end @5% of Trade Less: Allowances Receivable Opening Charged to P&L 40.00 5.00 Carried forward to Bsheet 45.00 5 Bonus Shares are issued out of premium Ratio is 1:10 So Total Shares issued is 1800/10 Value @ $1 Capital Increased by 180.00 180.00 180.00 Issued from Share premium Share Premium Balance Opening Balance Less: Shares issued Carried forward to Bsheet 200.00 180.00 20.00 6 Gross Value Building as on 31st October 20X6 Opening Balance 1,500.00 Add: Property Expenses 100.00 Add: Revaluation 300.00 Carried forward to Bsheet 1,900.00