U1 Booklet 2 Activities Solutions (PLCS).xlsx - 1.57

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1.57 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION Unnamed: 6 Unnamed: 7 Unnamed: 8 Unnamed: 9 Unnamed: 10 Unnamed: 11
Jackson PLC
Income Statement and Appropriation Account for the year ended 31 December Year 9
£OOO £OOO £OOO
Gross Profit 64
Less Expenses
Salaries 17
Debenture Interest 1
Directors' Fees 10
General Expenses 14
Increase in BDP 1
Depreciation - Plant and Machinery 8
Depreciation - Motor Vehicles 2 53
11
Add Other Income
Investment Income Received 2 2
Profit for the Year 13
Less Corporation Tax (25%) 3.25 16000.0 4000.0
9.75
Add Unappropriated Profit 7
16.75
Less
Ordinary Dividend 7
Preference Dividend 3
General Reserve 1 11
Unappropriated Profit 5.75
Jackson PLC
Statement of Financial Position as at 31 December Year 9
COST DEPN NBV
£OOO £OOO £OOO
Non-Current Assets
Plant and Machinery 120 40 80
Motor Vehicles 10 5 5
Intangible Assets: Goodwill 15
Intangible Assets: Preliminary Expenses 5
105
Investments (MV £20,000) 16
121
Current Assets
Closing Inventory 15
Trade Receivables 9
Provision for Bad Debts 2 7
Cash and Cash Equivalents (10-3) 7
General Expenses Receivable 3
32
Current Liabilities
Trade Payables 12
Corporation Tax Payable 3.25
Salaries Payable 2 17.25
Working Equity 14.75
Net Assets Employed 135.75
Non-Current Liabilities
10% Debentures 10 10
Net Assets 125.75
EQUITY
70,000 £1 Ordinary Shares 70
30,000 £1 10% Preference Shares 30 100
Reserves
Unappropriated Profit 5.75
General Reserve 10
Share Premium 10 25.75
125.75