Q4 The rf The following trial balance of Oasis Lid as at 30 September 2006 500 6
ID: 2437138 • Letter: Q
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Q4 The rf The following trial balance of Oasis Lid as at 30 September 2006 500 600 90 Profit and loss account: 1 October 200 and buildings at cost Motor vehicles at cost 880 Trade debtors / creditors 650 arehouse wages staftf salaries 60 and heat 180 Bank 279 urther 1. The called-up share capital of 1 millon ordinary shares of $1.00 each, fully paid 2. Stock at 30 September 2008 was $740,000 5. The directors have proposed a final dividend on the ordinary shares in 6. Depreciation is provided on a straight line basis at 2 per cent per annum for building and 20 The auditors' fees and expenses for the year are expected to be $71,000 The estimated corporation tax charge on the profit for the year is $250,000 of 10 cents per share per cent per annum on vehicles. A full years charge is made in the year of none in the year of disposal issue at 30 September aoquisation and 7. The following items are to be apportioned between distribution costs and administrative below Light and heat, telephone and postage, 60% 8. The following itams were unrecorded in the ledger on 30 September 2008 The issue of 500,000 ordinary shares at $1.50 each fully paid on 31 August 2006 () The acquisition on credit of a motor vehicle costing $100,000 on 31 August 2006 The sale on credit of a motor vehicle for $40,000 on 31 August 2006. The cost $50,000 when purchased on 1 February 2004 The land included in the above trial balance cost $1 m. The directors have decided to revalue this on 30 Septamber 2008 at $1.3 m 9. REQUIRED Prepare profit ands loss account for the year ended 30 September 2008 and a balance sheet as at 30 September 2008 in a form suitable for.publicationExplanation / Answer
Profit and loss account for the year ended 30th september 2006 Sales 6540 Less : Discounts -9 Net Sales 6531 less:cost of goods sold -3790 gross profit 2741 Less : Administrative Expenses Directors remuneration -210 Light and heat -72 Telephone and postage -32 Building Depreciation -12 Motor Expenses -115 Vehicle Depreciation -145 -586 Distributive Expenses Directors remuneration -70 Light and heat -108 Telephone and postage -48 warehouse wages -310 Building Depreciation -18 Motor Expenses -115 Vehicle Depreciation -145 -814 Administrative salaries -190 Warehouse wages -310 Sales staff salaries -70 Bad Debts -20 Advertising expenditure -60 Revaluation of Land 30 Profit on Sale 10 EBT 731 Less : Tax -250 Net Income 481 Dividend 100 (1000*0.10) Trf to retained earnings 381 cost of goods sold: opening stock 880 purchases 3650 closing stock -740 cogs 3790 Depreciation on Building Cost 1500 1000000 Depreciation 30 Depreciation on Vehicle Cost 1450 Depreciation 290 Total Depreciation 320 Issue of New Shares Face Value 500 Share premium(500*0.50) 250 Bank -19 New shares 750 731 Purchase of Vehicle -01st Feb 2004 50 Less : Depreciation @ 20% for 2 yrs 20 30 40 Profit on sale -10 Oasis ltd Balance sheet as on 30th september 2006 liabilities amt $ assets amt $ Share Capital 1500 land and buliding 2800 share premium 750 less: Accumulated depreciation -120 profit and loss Net 2680 Retained earnings 700 Motor Vehicle 1450 Add: current year 381 Less: Accumulated depreciation -760 Retained earnings 1081 Net 690 Shareholder's Equity 3331 total fixed assets 3370 10 % debentures 600 Trade Creditors 360 trade debtors 420 Auditors fees Payable 71 closing stock 740 Income Tax Provision 250 Bank 731 Vehicle Payable 100 Vehicle Receivable 50 Dividend Payable 100 current assets 1931 Current Liabilities 881 Total Liabilities and Shareholders 4812 Total Assets 5301
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