U1 Booklet 2 Activities Solutions (PLCS).xlsx - 1.58

Back to sheets

1.58 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION Unnamed: 6 Unnamed: 7 Unnamed: 8 Unnamed: 9 Unnamed: 10
Keith and Joseph PLC
Income Statement (and Appropriation Account) for the year ended 31 December Year 5 10.0
£OOO £OOO £OOO
Sales Revenue 180
Less Sales Returns 0
Net Sales Revenue 180 1 plus title
Less Cost of Sales
Opening Inventory 5 1
Add Purchases 105 1
Less Purchases Returns 0 105
110
Add Carriage In 17 1
127
Less Closing Inventory 7 1
COST OF SALES 120
Gross Profit 60
Less Expenses
Admin Expenses 11 1
Selling Expenses 10 1
Debenture Interest 2 *
General Expenses 11 * 1 for both
Depreciation - Plant and Machinery 8 *
Depreciation - Motor Vehicles 1 43 * 1 for both
17
Add Other Income
Income Received from Investments 4 4 1
Profit for the Year 21 5.0
Less Corporation Tax (25%) 5.25 1
15.75
Add Unappropriated Profit 9 1
24.75
Less 180000.0 45000.0
Interim Ordinary Dividend 5
Final Ordinary Dividend 5 10 1 for both
Goodwill write down 3 1
General Reserve 4 17 1
Unappropriated Profit 7.75
Keith and Joseph PLC
Statement of Financial Position as at 31 December Year 5 15.0
COST DEPN NBV
£OOO £OOO £OOO
Non-Current Assets
Plant and Machinery 125 23 102 1
Motor Vehicles 10 3 7 1
Intangible Assets: Goodwill 8 1
Intangible Assets: Preliminary Expenses 3 *
120
Investments (MV £24,000) 20 *1 for both
140
Current Assets
Closing Inventory 7 *
Trade Receivables 16 *
Provision for Bad Debts 0 16
Cash and Cash Equivalents 6 *
Selling Expenses Receivable 4 * 3 for all correct, 2 for three correct, 1 for two correct, 0 if only 1 correct
33
Current Liabilities
Trade Payables 11 *
Corporation Tax Payable 5.25 *
Admin Expenses Payable 2 18.25 * 2 if all correct, 1 if two correct, 0 if only 1 correct
Working Equity 14.75
Net Assets Employed 154.75
Non-Current Liabilities
10% Debentures 20 20 1
Net Assets 134.75
EQUITY
100,000 £1 Ordinary Shares 100 100 1
Reserves
Unappropriated Profit 7.75 1
General Reserve 19 1
Share Premium 8 34.75 1
134.75 1 HLA