U1 Booklet 2 Activities Solutions (PLCS).xlsx - 1.60

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1.6 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION
Nebraska PLC
Appropriation Account for the year ended 30 June Year 9
£OOO £OOO £OOO
Profit for the Year (before Corporation Tax) 140
Less Corporation Tax (25%) 35
Profit for the Year (after Corporation Tax) 105
Add Unappropriated Profit 18
123
Less
Preference Dividend 6
Interim Ordinary Dividend 15
Final Ordinary Dividend 10 25
General Reserve 10
Goodwill Write Off 10 51
Unappropriated Profit 72
Nebraska PLC
Statement of Financial Position as at 30 June Year 9
COST DEPN NBV
£OOO £OOO £OOO
Non-Current Assets
Property 220 0 220
Vehicles 150 35 115
Fittings 45 20 25
Intangible Assets: Goodwill 0
Intangible Assets: Preliminary Expenses 10
370
Investments 0
370
Current Assets
Closing Inventory 85
Trade Receivables 56
Provision for Bad Debts 0 56
Cash and Cash Equivalents (73-10) 63
Insurance Receivable 12
VAT 8
224
Current Liabilities
Trade Payables 58
Electricity Payable 14
Corporation Tax Payable 35 107
Working Equity 117
Net Assets Employed 487
Non-Current Liabilities
10% Debentures 50 50
Net Assets 437
EQUITY
60,000 10% Preference Shares of £1 each 60
250,000 Ordinary Shares of £1 each 250 310
Reserves
Unappropriated Profit 72
General Reserve (45+10) 55
Share Premium 0 127
437