U1 Booklet 2 Activities Solutions (PLCS).xlsx - 1.55

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1.55 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION
Georgeson PLC
Appropriation Account for the year ended 31 December Year 4
£OOO £OOO £OOO
Profit for the Year 205000
Less Corporation Tax (25%) 51250
153750
Add Unappropriated Profit 33000
186750
Less
Ordinary Dividend 80000
General Reserve 20000 100000
Unappropriated Profit 86750
Georgeson PLC
Statement of Financial Position as at 31 December Year 4
COST DEPN NBV
£OOO £OOO £OOO
Non-Current Assets
Property 700000 0 700000
Fittings 30000 10000 20000
Intangible Assets: Preliminary Expenses 10000
730000
Investments 0
730000
Current Assets
Closing Inventory 280000
Trade Receivables 150000
Provision for Bad Debts 4000 146000
Cash and Cash Equivalents 200000
Rates Receivable 1000
627000
Current Liabilities
Trade Payables 90000
Corporation Tax Payable 51250
Wages Payable 3000
Debenture Interest Payable 6000 150250
Working Equity 476750
Net Assets Employed 1206750
Non-Current Liabilities
Debentures 200000 200000
Net Assets 1006750
EQUITY
800,000 £1 Ordinary Shares 800000 800000
Reserves
Unappropriated Profit 86750
General Reserve 20000
Share Premium 100000 206750
1006750
0