E5.1 Muir Limited's trial balance for the year to 30 November 2011 is shown below: Administrative...

  

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E5.1 Muir Limited's trial balance for the year to 30 November 2011 is shown below: Administrative expenses Called up share capital (£1 ordinary shares) Cash at bank and in hand Distribution costs Dividends received Fixed asset investments (at cost) Land and property: At cost (land £100,000) Accumulated depreciation (at 1 December 2010) Profit and loss account (at 1 December 2010) Purchases Sales Stock (at 1 December 2010) Trade creditors Trade debtors Vans: At cost Accumulated depreciation (at 1 December 2010) Dr £'000 210 40 580 20 200 1,360 260 430 700 3,800 Cr £'000 720 4 16 160 2,480 120 300 3.800 Additional information: 1) Stock at 30 November 2011: £250,000. 2) Depreciation if is charged on property at a rate of 4% on cost and on vans at a rate of 25% on cost. 3) At 30 November 2011 £10,000 was owed for office salaries and £5,000 had been paid in advance for van licences. 4) Corporation tax owing at the end of the year for 2011 amounted to £55,000. 5) The directors propose to pay an ordinary dividend of 10p per share. Required: Prepare Muir's profit and loss account for the year to 30 November 2011 and a balance sheet as at that date. E5.1 Muir Limited's trial balance for the year to 30 November 2011 is shown below: Administrative expenses Called up share capital (£1 ordinary shares) Cash at bank and in hand Distribution costs Dividends received Fixed asset investments (at cost) Land and property: At cost (land £100,000) Accumulated depreciation (at 1 December 2010) Profit and loss account (at 1 December 2010) Purchases Sales Stock (at 1 December 2010) Trade creditors Trade debtors Vans: At cost Accumulated depreciation (at 1 December 2010) Dr £'000 210 40 580 20 200 1,360 260 430 700 3,800 Cr £'000 720 4 16 160 2,480 120 300 3.800 Additional information: 1) Stock at 30 November 2011: £250,000. 2) Depreciation if is charged on property at a rate of 4% on cost and on vans at a rate of 25% on cost. 3) At 30 November 2011 £10,000 was owed for office salaries and £5,000 had been paid in advance for van licences. 4) Corporation tax owing at the end of the year for 2011 amounted to £55,000. 5) The directors propose to pay an ordinary dividend of 10p per share. Required: Prepare Muir's profit and loss account for the year to 30 November 2011 and a balance sheet as at that date.

Answer rating: 100% (QA)

Profit and loss account For the year ended 30 November 2011 Sales 2480 Less ... View the full answer