| 1.67 | Unnamed: 1 | Booklet 5 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Bakers PLC | |||||
| Income Statement and Appropriation Account for the year ended 31 March Year 5 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 764 | ||||
| Less Sales Returns | 24 | ||||
| Net Sales Revenue | 740 | ||||
| Less Cost of Sales | |||||
| Opening Inventory | 36 | ||||
| Add Purchases | 410 | ||||
| Less Purchases Returns | 15 | 395 | |||
| 431 | |||||
| Add Carriage In | 0 | ||||
| 431 | |||||
| Add Warehouse Wages | 55 | ||||
| Add Warehouse Expenses | 17 | ||||
| 503 | |||||
| Less Closing Inventory | 24 | ||||
| COST OF SALES | 479 | ||||
| Gross Profit | 261 | ||||
| Less Expenses | |||||
| Insurance | 16 | ||||
| Advertising (64-5-4) | 55 | ||||
| Office and Selling Wages | 79 | ||||
| Vehicle Maintenance (17+2) | 19 | ||||
| Rent (24+4+1) | 29 | ||||
| Bad Debts | 12 | ||||
| Discount Allowed | 3 | ||||
| Depreciation - Vehicles (80x5%) | 4 | ||||
| Depreciation - Fixtures and Fittings (40-10=30x20%) | 6 | ||||
| Debenture Interest (10%x100) | 10 | ||||
| Increase in BDP (8-6) | 2 | 235 | |||
| 26 | |||||
| Add Other Income | |||||
| Discounts Received | 6 | 6 | |||
| Profit for the Year (before Corporation Tax) | 32 | ||||
| Less Corporation Tax (25%) | 8 | ||||
| Profit for the Year (after Corporation Tax) | 24 | ||||
| Add Unappropriated Profit | 15 | ||||
| 39 | |||||
| Add Transfer from General Reserve | 10 | ||||
| 49 | |||||
| Less | |||||
| Interim Ordinary Dividend | 10 | ||||
| Final Ordinary Dividend | 5 | 15 | |||
| Interim Preference Dividend | 2 | ||||
| Final Preference Dividend (8%x50=4-2) | 2 | 4 | 19 | ||
| Unappropriated Profit | 30 | ||||
| Bakers PLC | |||||
| Statement of Financial Position as at 31 March Year 5 | |||||
| COST | DEPN | NBV | |||
| £OOO | £OOO | £OOO | |||
| Non-Current Assets | |||||
| Property | 250 | 25 | 275 | ||
| Vehicles (5+4) | 80 | 9 | 71 | ||
| Fixtures and Fittings (10+6) | 40 | 16 | 24 | ||
| Intangible Assets: Preliminary Expenses (15-5) | 10 | ||||
| Intangible Assets: Goodwill | 30 | ||||
| 410 | |||||
| Investments | 0 | ||||
| 410 | |||||
| Current Assets | |||||
| Closing Inventory | 24 | ||||
| Trade Receivables | 80 | ||||
| Provision for Bad Debts | 8 | 72 | |||
| Cash and Cash Equivalents (12-5-2) | 5 | ||||
| Advertising Receivable | 4 | ||||
| 105 | |||||
| Current Liabilities | |||||
| Trade Payables | 32 | ||||
| Debenture Interest Payable | 10 | ||||
| Vehicle Maintenance Payable | 2 | ||||
| Rent Payable | 1 | ||||
| VAT | 14 | ||||
| Corporation Tax Payable | 8 | 67 | |||
| Working Equity | 38 | ||||
| Net Assets Employed | 448 | ||||
| Non-Current Liabilities | |||||
| 10% Debentures | 100 | 100 | |||
| Net Assets | 348 | ||||
| EQUITY | |||||
| 220,000 Ordinary Shares of £1 each | 220 | ||||
| 50,000 8% Preference Shares of £1 each | 50 | 270 | |||
| Reserves | |||||
| Unappropriated Profit | 30 | ||||
| Share Premium (40-20-5) | 15 | ||||
| General Reserve (10-10) | 0 | ||||
| Revaluation Reserve (8+25) | 33 | 78 | |||
| 348 |