The balances listed on left are as at 31 December 2011 from the books of Abrador Ltd.
Question:
The balances listed on left are as at 31 December 2011 from the books of Abrador Ltd.
You are informed as follows:
(i) On 31 December 2011 the company issued for cash one million ordinary shares at a premium of 30p each. The proceeds have been posted from the Cash Book to a suspense account.
(ii) Profit for the year, identified without adjusting for information stated as iii, iv and v, is included within accumulated profit.
(iii) Depreciation should be provided on property, plant and equipment at 25% on the reducing balance method.
(iv) A debt of £400,000 should be written off and the allowance adjusted to 3% of receivables.
(v) Income tax on the current year’s profit should be accounted for at £125,000.
Required:
Prepare for publication the company’s Statement of financial position as at 31.12.2011.
Step by Step Answer:
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict