| 1.66 | booklet 5 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| East Traders PLC | |||||
| Income Statement and Appropriation Account for the year ended 31 December Year 8 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 460 | ||||
| Less Sales Returns | 10 | ||||
| Net Sales Revenue | 450 | ||||
| Less Cost of Sales | |||||
| Opening Inventory | 15 | ||||
| Add Purchases | 105 | ||||
| Less Purchases Returns | 0 | 105 | |||
| 120 | |||||
| Add Carriage In | 0 | ||||
| 120 | |||||
| Add Warehouse Expenses | 20 | ||||
| Add Warehouse Wages (70-10=60x60%) | 36 | ||||
| 176 | |||||
| Less Closing Inventory | 10 | ||||
| COST OF SALES | 166 | ||||
| Gross Profit | 284 | ||||
| Less Expenses | |||||
| Office and Selling Wages (70-10=60x40%) | 24 | ||||
| Advertising (12-3) | 9 | ||||
| General Expenses | 38 | ||||
| Vehicle Licences (10-4) | 6 | ||||
| Insurance (33+2-3) | 32 | ||||
| Bad Debts | 4 | ||||
| Debenture Interest (1+1) | 2 | ||||
| Depreciation - Vehicles (400-100=300x25%) | 75 | ||||
| Depreciation - Office Equipment (10%x30) | 3 | 193 | |||
| 91 | |||||
| Add Other Income | |||||
| Commission Received | 5 | ||||
| Decrease in BDP (6-2) | 4 | 9 | |||
| Profit for the Year (before Corporation Tax) | 100 | ||||
| Less Corporation Tax (25%) | 25 | ||||
| Profit for the Year (after Corporation Tax) | 75 | ||||
| Add Unappropriated Profit | 5 | ||||
| 80 | |||||
| Less | |||||
| Interim Ordinary Dividend | 5 | ||||
| Final Ordinary Dividend (160x0.05) | 8 | 13 | |||
| Goodwill Write Off | 10 | ||||
| Transfer to General Reserve | 10 | 33 | |||
| Unappropriated Profit | 47 | ||||
| East Traders PLC | |||||
| Statement of Financial Position as at 31 December Year 8 | |||||
| COST | DEPN | NBV | |||
| £OOO | £OOO | £OOO | |||
| Non-Current Assets | |||||
| Vehicles (100+75) | 400 | 175 | 225 | ||
| Office Equipment (10+3) | 30 | 13 | 17 | ||
| Intangible Assets: Goodwill (10-10) | 0 | ||||
| Intangible Assets: Preliminary Expenses (9-2) | 7 | ||||
| 249 | |||||
| Investments | 0 | ||||
| 249 | |||||
| Current Assets | |||||
| Closing Inventory | 10 | ||||
| Trade Receivables | 35 | ||||
| Provision for Bad Debts | 2 | 33 | |||
| Cash and Cash Equivalents (-7+75-8) | 60 | ||||
| Advertising Receivable | 3 | ||||
| Vehicle Licenses Receivable | 4 | ||||
| Insurance Receivable | 3 | ||||
| 113 | |||||
| Current Liabilities | |||||
| Trade Payables | 11 | ||||
| Debenture Interest Payable | 1 | ||||
| VAT | 5 | ||||
| Corporation Tax Payable | 25 | 42 | |||
| Working Equity | 71 | ||||
| Net Assets Employed | 320 | ||||
| Non-Current Liabilities | |||||
| 10% Debentures | 20 | 20 | |||
| Net Assets | 300 | ||||
| EQUITY | |||||
| 194,000 Ordinary Shares of £1 each | 194 | 194 | |||
| Reserves | |||||
| Unappropriated Profit | 47 | ||||
| Share Premium (15+25-2) | 38 | ||||
| General Reserve (11+10) | 21 | 106 | |||
| 300 |