U1 Booklet 2 Activities Solutions (PLCS).xlsx - WE1-3

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PLC Accounts - Worked Examples Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 Unnamed: 5 SOLUTION
Worked Example 1
ABC PLC
Appropriation Account for the year ended 31 December Year 1
£ £ £
Profit for the Year 20000
Less Corporation Tax 5000
15000
Add Unappropriated Profit at Start of Year 2000
17000
Less
Ordinary Dividend 2000
Preference Dividend 4000 6000
Unappropriated Profit 11000
Worked Example 2
Adams PLC
Appropriation Account for the year ended 31 December Year 4
£ £ £
Profit for the Year 40000
Less Corporation Tax 10000
30000
Add Unappropriated Profit 5000
35000
Less
Interim Ordinary Dividend 2000
Final Ordinary Dividend 1000 3000
Interim Preference Dividend 3000
Final Preference Dividend 4000 7000 10000
Unappropriated Profit 25000
Worked Example 3
Baldwin PLC
Appropriation Account for the year ended 31 December Year 1
£ £ £
Profit for the Year 50000
Less Corporation Tax 12500
37500
Add Unappropriated Profit at start of year 7000
44500
Less
Preference Dividend 2000
Ordinary Dividend 8000 10000
Unappropriated Profit 34500