| 1.65 | Booklet 5 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION | Unnamed: 6 | Unnamed: 7 |
|---|---|---|---|---|---|---|---|
| Lightshire PLC | |||||||
| Income Statement and Appropriation Account for the year ended 31 December Year 9 | |||||||
| £OOO | £OOO | £OOO | |||||
| Sales Revenue | 1715 | ||||||
| Less Sales Returns | 0 | ||||||
| Net Sales Revenue | 1715 | 1.0 | |||||
| Less Cost of Sales | |||||||
| Opening Inventory | 110 | 1.0 | |||||
| Add Purchases | 852 | 1.0 | |||||
| Less Purchases Returns | 0 | 852 | |||||
| 962 | |||||||
| Add Carriage In | 3 | 1.0 | |||||
| 965 | |||||||
| Add Warehouse Expenses | 5 | 1.0 | |||||
| Add Warehouse Wages (322x50%) | 161 | 1.0 | |||||
| 1131 | |||||||
| Less Closing Inventory | 51 | ||||||
| COST OF SALES | 1080 | 1.0 | |||||
| Gross Profit | 635 | 1.0 | |||||
| Less Expenses | |||||||
| Carriage Out | 2 | 1.0 | |||||
| General Office Salaries (322x50%) | 161 | 1.0 | |||||
| Selling Expenses (15+3) | 18 | 1.0 | |||||
| Insurance (30-2) | 28 | 1.0 | |||||
| Bad Debts | 31 | 1.0 | |||||
| Debenture Interest (4+4) | 8 | 1.0 | |||||
| Increase in BDP (4-2) | 2 | 1.0 | |||||
| Depreciation - Vehicles (370-50=320x25%) | 80 | 330 | 1.0 | ||||
| 305 | |||||||
| Add Other Income | |||||||
| Discount Received | 8 | 1.0 | |||||
| Investment Income | 7 | 15 | 1.0 | ||||
| Profit for the Year (before Corporation Tax) | 320 | 1.0 | |||||
| Less Corporation Tax (25%) | 80 | 1.0 | |||||
| Profit for the Year (after Corporation Tax) | 240 | 1.0 | |||||
| Add Unappropriated Profit | 10 | 1.0 | |||||
| 250 | |||||||
| Less | |||||||
| Interim Ordinary Dividend | 30 | 1.0 | |||||
| Final Ordinary Dividend | 45 | 75 | 1.0 | ||||
| (500x15%=75-30=45) | |||||||
| Preference Dividend (8%x150) | 12 | 1.0 | |||||
| Transfer to General Reserve | 15 | 102 | 1.0 | ||||
| Unappropriated Profit | 148 | 1.0 | |||||
| 27.0 | |||||||
| Lightshire PLC | |||||||
| Statement of Financial Position as at 31 December Year 9 | |||||||
| COST | DEPN | NBV | |||||
| £OOO | £OOO | £OOO | |||||
| Non-Current Assets | |||||||
| Property | 640 | 60 | 700 | 1.0 | |||
| Vehicles (50+80) | 370 | 130 | 240 | 1.0 | |||
| Intangible Assets: Preliminary Expenses (5-5) | 0 | ||||||
| 940 | |||||||
| Investments (MV £150,000) | 135 | 1.0 | |||||
| 1075 | |||||||
| Current Assets | |||||||
| Closing Inventory | 51 | 1.0 | |||||
| Trade Receivables | 100 | ||||||
| Provision for Bad Debts | 4 | 96 | 1.0 | ||||
| Insurance Receivable | 2 | 1.0 | |||||
| Investment Income Due | 7 | 1.0 | |||||
| 156 | |||||||
| Current Liabilities | |||||||
| Trade Payables | 70 | 1.0 | |||||
| Cash and Cash Equivalents (40-45-12) | 17 | 1.0 | |||||
| Selling Expenses Payable | 3 | 1.0 | |||||
| Debenture Interest Payable | 4 | 1.0 | |||||
| VAT | 9 | 1.0 | |||||
| Corporation Tax Payable | 80 | 183 | 1.0 | ||||
| Working Equity | -27 | 1.0 | |||||
| Net Assets Employed | 1048 | 1.0 | |||||
| Non-Current Liabilities | |||||||
| 8% Debentures | 100 | 100 | 1.0 | ||||
| Net Assets | 948 | ||||||
| EQUITY | |||||||
| 500,000 Ordinary Shares of £1 each | 500 | 1.0 | |||||
| 150,000 8% Preference Shares of £1 each | 150 | 650 | 1.0 | ||||
| Reserves | |||||||
| Unappropriated Profit | 148 | 1.0 | |||||
| Share Premium (10-5) | 5 | 1.0 | |||||
| General Reserve (70+15) | 85 | 1.0 | |||||
| Revaluation Reserve | 60 | 298 | 1.0 | ||||
| 948 | |||||||
| 22.0 | |||||||
| 49.0 |