U1 Booklet 2 Activities Solutions (PLCS).xlsx - 1.61

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1.61 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 SOLUTION
Norris PLC
Appropriation Account for the year ended 30 June Year 10
£OOO £OOO £OOO
Profit for the Year (before Corporation Tax) 280
Less Corporation Tax (25%) 70
Profit for the Year (after Corporation Tax) 210
Add Unappropriated Profit 25
235
Less
Preference Dividend 8
Interim Ordinary Dividend 15
Final Ordinary Dividend 20 35
General Reserve 20 63
Unappropriated Profit 172
Norris PLC
Statement of Financial Position as at 30 June Year 10
COST DEPN NBV
£OOO £OOO £OOO
Non-Current Assets
Property 310 15 325
Motor Vehicles 220 70 150
Fixtures and Fittings 100 42 58
Intangible Assets: Goodwill 50
Intangible Assets: Preliminary Expenses 0
583
Investments 0
583
Current Assets
Closing Inventory 142
Trade Receivables 130
Provision for Bad Debts 0 130
Cash and Cash Equivalents (95-20) 75
Advertising Receivable 32
379
Current Liabilities
Trade Payables 72
Wages Payable 18
VAT 25
Corporation Tax Payable 70 185
Working Equity 194
Net Assets Employed 777
Non-Current Liabilities
10% Debentures 80 80
Net Assets 697
EQUITY
80,000 10% Preference Shares of £1 each 80
350,000 Ordinary Shares of £1 each 350 430
Reserves
Unappropriated Profit 172
General Reserve (40+20) 60
Share Premium (25-5) 20
Revaluation Reserve 15 267
697