| 1.62 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| AD Traders PLC | |||||
| Income Statement and Appropriation Account for the year ended 31 March Year 5 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 180 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 180 | ||||
| Less Cost of Sales | |||||
| Opening Inventory | 15 | ||||
| Add Purchases | 80 | ||||
| Less Purchases Returns | 0 | 80 | |||
| 95 | |||||
| Add Carriage In | 2 | ||||
| 97 | |||||
| Add Warehouse Expenses (11+4) | 15 | ||||
| 112 | |||||
| Less Closing Inventory | 17 | ||||
| COST OF SALES | 95 | ||||
| Gross Profit | 85 | ||||
| Less Expenses | |||||
| Wages | 39 | ||||
| Insurance (10-1) | 9 | ||||
| Advertising | 6 | ||||
| Bad Debts | 9 | ||||
| Debenture Interest (2+2) | 4 | ||||
| Discount Allowed | 1 | ||||
| Commission (0+1) | 1 | ||||
| Depreciation - Equipment (10%x90) | 9 | ||||
| Depreciation - Vehicles (30-18=12x25%) | 3 | 81 | |||
| 4 | |||||
| Add Other Income | |||||
| Discount Received | 6 | ||||
| Decrease in BDP (3-1) | 2 | 8 | |||
| Profit for the Year (before Corporation Tax) | 12 | ||||
| Less Corporation Tax (25%) | 3 | ||||
| Profit for the Year (after Corporation Tax) | 9 | ||||
| Add Unappropriated Profit | 18 | ||||
| 27 | |||||
| Less | |||||
| Interim Ordinary Dividend | 2 | ||||
| Final Ordinary Dividend | 7 | 9 | |||
| Transfer to General Reserve | 6 | 15 | |||
| Unappropriated Profit | 12 | ||||
| AD Traders PLC | |||||
| Statement of Financial Position as at 31 March Year 5 | |||||
| COST | DEPN | NBV | |||
| £OOO | £OOO | £OOO | |||
| Non-Current Assets | |||||
| Property | 50 | 0 | 50 | ||
| Equipment (30+9) | 90 | 39 | 51 | ||
| Vehicles (18+3) | 30 | 21 | 9 | ||
| Intangible Assets: Goodwill | 10 | ||||
| 120 | |||||
| Investments | 20 | ||||
| 140 | |||||
| Current Assets | |||||
| Closing Inventory | 17 | ||||
| Trade Receivables | 29 | ||||
| Provision for Bad Debts | 1 | 28 | |||
| Cash and Cash Equivalents (8-7) | 1 | ||||
| Insurance Receivable | 1 | ||||
| Loan to Harris PLC | 10 | ||||
| 57 | |||||
| Current Liabilities | |||||
| Trade Payables | 25 | ||||
| Debenture Interest Payable | 2 | ||||
| Warehouse Expenses Payable | 4 | ||||
| Commission Payable | 1 | ||||
| Corporation Tax Payable | 3 | 35 | |||
| Working Equity | 22 | ||||
| Net Assets Employed | 162 | ||||
| Non-Current Liabilities | |||||
| 10% Debentures | 40 | 40 | |||
| Net Assets | 122 | ||||
| EQUITY | |||||
| 84,000 Ordinary Shares of £1 each | 84 | 84 | |||
| ((70000/5)+70000) | |||||
| Reserves | |||||
| Unappropriated Profit | 12 | ||||
| General Reserve (14+6) | 20 | ||||
| Share Premium (20-14) | 6 | 38 | |||
| 122 |