Pecnut Ltd's trial balance at 31 March 2004 was as follows. Further information 1. Stock at 31 March 2004: $105
Pecnut Ltd's trial balance at 31 March 2004 was as follows.
1. Stock at 31 March 2004: $105 000.
2. The freehold buildings are to be revalued to $2 000 000 at 31 March 2004.
3. The motor vehicles are to be depreciated at the rate of 25% using the reducing balance method.
4. $10 000 is to be transferred to General Reserve.
5. The directors have recommended a dividend of $0.25 per share.
(a) Prepare Pecnut Ltd's Profit and Loss Account for the year ended 31 March 2004.
(b) Prepare the Balance Sheet as at 31 March 2004.
(c) Companies should prepare their annual accounts on the basis that they are going concerns. Explain what this means and how their annual accounts will be affected if they are not going concerns.
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