U1 Booklet 2 Activities Solutions (PLCS).xlsx - 1.59

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1.59 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION
Norman and Bates PLC
Appropriation Account for the year ended 30 June Year 5
£OOO £OOO £OOO
Profit for the Year (before Corporation Tax) 40
Less Corporation Tax (25%) 10
Profit for the Year (after Corporation Tax) 30
Add Unappropriated Profit (left over from last year!!) 10
40
Less
Preference Dividend 5
Interim Ordinary Dividend 10
Final Ordinary Dividend 10 20
General Reserve 5 30
Unappropriated Profit 10
Norman and Bates PLC
Statement of Financial Position as at 30 June Year 5
COST DEPN NBV
£OOO £OOO £OOO
Non-Current Assets
Property 150 0 150
Vehicles 90 30 60
Fittings 30 10 20
Intangible Assets: Preliminary Expenses 10
240
Investments 0
240
Current Assets
Closing Inventory 60
Trade Receivables 45
Provision for Bad Debts 0 45
Cash and Cash Equivalents 35
Advertising Receivable 10
150
Current Liabilities
Trade Payables 35
VAT 10
Insurance Payable 5
Corporation Tax Payable 10 60
Working Equity 90
Net Assets Employed 330
Non-Current Liabilities
10% Debentures 30 30
Net Assets 300
EQUITY
50,000 10% Preference Shares of £1 each 50
200,000 Ordinary Shares of £1 each 200 250
Reserves
Unappropriated Profit 10
General Reserve (35+5) 40
Share Premium 0 50
300