The following trial balance is provided for Silver Stars Co Ltd for the year ending 31st December
Question:
The following trial balance is provided for Silver Stars Co Ltd for the year ending 31st December 2019
400,000 Ordinary shares of s. 10 @
4,000,000
300,000 10% Preference Share of Sh. 10 @
3,000,000
Share premiums
1,000,000
Retained Profits
2,400,000
Revaluation Reserve
1,200,000
15% Debentures
1,600,000
Land and buildings (cost)
5,480,000
Motor vehicles ( net as at 31st Dec 2013
7,200,000
Plant and machinery (net as at 31st Dec.2013)
1,440,000
Furniture (N.B.V)
600,000
Computers (N.B.V)
100,000
Stocks
1,080,000
Debtors and creditors
760,000
720,000
Bank balance
720,000
Cash balance
80,000
Gross profit for the year
6,740,000
Interim dividends: Preference
200,000
Ordinary
80,000
Provision for depreciation:
Administrative expenses
1,700,000
Selling and distribution cost
810,000
Finance cost
120,000
Investments
300,000
Provision for bad debts
4,000
Investment income 6,000
20,670 20,670
Additional information
Sh. 200,000 to be transferred to general reserves
Proposed dividends; Preference dividends to be paid and a final dividend of 5% be made on Ordinary shares
Distribution expenses paid in advance amount tosh. 200 000 and accrued administration expenses amount tosh. 1,2 M Debentures were partly accruing for the year.
Sh. 20,000 were to be written off as bad debts and a provision of 2% be maintained
Required:
Income statement and profit and loss and appropriation account for the year ended 31st December 2019.(5 Marks)
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain