The following list of Balances was extracted from the books of BG Trading Limited at 30...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following list of Balances was extracted from the books of BG Trading Limited at 30 June 2006 after the closing entries had been passed. R Trade creditors 137 883 Stock 699 715 Provision for income tax (balance due) 2 004 Provision for bad debts 20 997 16 % mortgage debentures 400 000 Land and buildings at cost 600 000 Debentures interest accrued 16 000 Goodwill at cost 300 000 General reserve 198 000 Furniture at cost less depreciation 100 000 Debtors 396 400 Ordinary share capital 1 500 000 Retained income 163 715 Additional information: 1. The cash book balance had been omitted 2. A dividend of 10% has been declared but no entries have yet been made. 3. The authorized capital of the company is R100 000 ordinary shares of R2 each. The directors have unrestricted power to issue the unissued shares as they deem fit before 31 March 2007. 4. Stock at 30 June 2006 has been valued at the lower of cost or net realizable value. The basis was consistent with that used in previous years. 5. The furniture on hand at 30 June 2006 was purchased on 1 July 2004. Depreciation is calculated at 10 % per annum according to the fixed instalment method. 6. The debentures were issued in units of R100 and are redeemable at the premium of 5% on 30 June 2006. 7. Land and buildings consist of office and shop premises on site number 178, Evertal, purchased on 3 August 1996 for R600 000. 8. Debtors include an amount of R16 400 lent to a director. The loan was made on 17 June 2006 and no repayments have yet been made. The loan was for the purchase of a car to be used mainly for the company's business, and was properly authorized. Required Prepare the balance sheet confirming to generally accepted accounting practice and the provisions of the Companies Act. Ignore comparative figures and the funds statement. The following list of Balances was extracted from the books of BG Trading Limited at 30 June 2006 after the closing entries had been passed. R Trade creditors 137 883 Stock 699 715 Provision for income tax (balance due) 2 004 Provision for bad debts 20 997 16 % mortgage debentures 400 000 Land and buildings at cost 600 000 Debentures interest accrued 16 000 Goodwill at cost 300 000 General reserve 198 000 Furniture at cost less depreciation 100 000 Debtors 396 400 Ordinary share capital 1 500 000 Retained income 163 715 Additional information: 1. The cash book balance had been omitted 2. A dividend of 10% has been declared but no entries have yet been made. 3. The authorized capital of the company is R100 000 ordinary shares of R2 each. The directors have unrestricted power to issue the unissued shares as they deem fit before 31 March 2007. 4. Stock at 30 June 2006 has been valued at the lower of cost or net realizable value. The basis was consistent with that used in previous years. 5. The furniture on hand at 30 June 2006 was purchased on 1 July 2004. Depreciation is calculated at 10 % per annum according to the fixed instalment method. 6. The debentures were issued in units of R100 and are redeemable at the premium of 5% on 30 June 2006. 7. Land and buildings consist of office and shop premises on site number 178, Evertal, purchased on 3 August 1996 for R600 000. 8. Debtors include an amount of R16 400 lent to a director. The loan was made on 17 June 2006 and no repayments have yet been made. The loan was for the purchase of a car to be used mainly for the company's business, and was properly authorized. Required Prepare the balance sheet confirming to generally accepted accounting practice and the provisions of the Companies Act. Ignore comparative figures and the funds statement.
Expert Answer:
Answer rating: 100% (QA)
BG Trading Limited Blance Sheet 30 June 2006 Particultars Amount Assets Current assets Ca... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following list of balances was extracted from the records of Wonderland Ltd for the year ended 28 February 20.19: Rand (cr) / dr Ordinary share capital (1 400 000) Proceeds of 450 000 new no par...
-
The following budgeted statement of profit or loss has been prepared for Quest Ltd for the four months January to March Year 5: Sales Cost of production (Increase/decrease in inventory Cost of sales...
-
The following list of balance sheet items are in random order for Alexander Farms, Inc., at September 30, current year. Instructions a. Prepare a balance sheet by using these items and computing the...
-
Capital budgeting for a foreign project is considerably more complex than the domestic case. What are the factors that add complexity?
-
Arbitrage is limited because the wealth of arbitrageurs is limited. Discuss this statement in the context of those who are managing their own money and those who are managing other people's money.
-
Explain why business sustainability is a key consideration for management.
-
A mixing basin in a sewage filtration plant is stirred by mechanical agitation (paddlewheel) with a power input \(\dot{W}(\mathrm{ft} \cdot \mathrm{lb} / \mathrm{s})\). The degree of mixing of fluid...
-
Review inventory accounting definitions and principles. Requirement 1. Complete the crossword puzzle using the following clues: Down: 1. Treats the oldest inventory purchases as the first units sold....
-
What are your thoughts on reduction to restructure the organization? Can this be good or bad? Explain in details.
-
Lavare, located in the Chicago suburbs, is a major manufacturer of stainless steel sinks. Lavare is in the middle of the demand and supply planning exercise for the coming year. Anticipated monthly...
-
(20 marks) Metal Products Ltd has two divisions: Pressings and Cans. Pressings produces pressed metal work for industrial and engineering work, while Cans produces cans for the paint and oil...
-
Identify a community - based program ( ( off - campus ) ) that focuses on addressing health issues. The program may focus on behavior change, changing local environments for health, or developing...
-
5. A mass on a spring is pulled down from equilibrium and released. Draw a graph of one cycle of the displacement graph for the mass. Next to the displacement graph draw one cycle of the...
-
Use the properties of logarithms to solve the following equations 4 log 4 ( 5 7 ) = x
-
Why should managers consider the global implication when looking at the demographics in the general environment? to understand the impact of the economy on the global market to understand competition...
-
For Sheridan Company, the predetermined overhead rate is 125 % of direct labor cost. During the month, Sheridan incurred $104,000 of factory labor costs, of which $80,500 is direct labor and $23,500...
-
Simplify the following completely: 45x5 A) 5x3
-
Sheldon and Leonard had a million-dollar idea. In order to make it happen, they have to do special research first. Only Kripke can help them in this matter. But Kripke is known to be the first-class...
-
Alpha Glasswares Ltd has the following assets and liabilities at 31 December 20X5. The shareholders funds balance has not been given and you will have to calculate this from the available...
-
Arlington Property Ltd. owns two large properties that it rents out to tenants on long-term leases. The company currently holds the properties in its books at depreciated historical cost, but intends...
-
The financial statements of Sprinto Ltd. are as follows for the year ended Analyse the performance of Sprinto Ltd. as far as the above information permits. Year ended Year ended Income statement for...
-
A copper sheet of thickness \(2 L=2 \mathrm{~mm}\) has an initial temperature of \(T_{i}=118^{\circ} \mathrm{C}\). It is suddenly quenched in liquid water, resulting in boiling at its two surfaces....
-
The heat transfer coefficient for hydrogen flowing over a sphere is to be determined by observing the temperature-time history of a sphere fabricated from pure copper. The sphere, which is \(20...
-
A power transistor mounted on a finned heat sink can be modeled as a spatially isothermal object with internal heat generation and an external convection resistance. (a) Consider such a system of...
Study smarter with the SolutionInn App