Trial balance of Lister Limited at 30 June 2009 Carriage outwards 3,000 Bank 700 Trade creditors 13,900
Question:
Trial balance of Lister Limited at 30 June 2009
Carriage outwards 3,000
Bank 700
Trade creditors 13,900
Trade debtors 32,800
Directors' remuneration 5,500
Electricity and gas 2,800
Insurance 1,700
Plant and machinery - at cost: 42,000
Accumulated depreciation at 1 July 2008 15,200
Office expenses 4,900
Ordinary issued share capital 25,000
Dividend 625
Profit and loss account at 1 July 2008 13,200
Provision for doubtful debts 800
Purchases 124,000
Rent and rates 7,500
Sales 210,625
Stock at 1 July 2008 13,400
Motor vehicles: at cost 8,000
Accumulated depreciation at 1 July 2008 4,000
Wages and salaries 35,800
282,725 282,725
You are given the following additional information:
(i) Stock at 30 June 2009, valued at cost, amounts to £15,500.
(ii) Depreciation, using the reducing balance method, is to be provided as follows:
(a) Plant and machinery at 20 per cent.
(b) Motor vehicles at 25 per cent.
(iii) The provision for bad debts is to be equal to 5 per cent of outstanding
debtors as at 30 June 2009.
(iv) The insurance account includes £300 which covers the business from 1 July
2009 until 31 December 2009.
(v) Rent due but unpaid at 30 June 2009 amounts to £250.
(vi) The directors agreed to pay a dividend of 5 per cent for the year. This
includes the interim dividend already paid.
(vii) Lister Limited has an authorised capital of 200,000 50p ordinary shares.
Prepare trading and profit and loss account for the year ended 30 June 2009,
and a balance sheet as at that date