The following is the trial balance of Tully Ltd as on 31 December 2020: Share capital...

 

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The following is the trial balance of Tully Ltd as on 31 December 2020: Share capital issued: ordinary shares 20p Accounts receivable and accounts payable Inventory 31 December 2019 Bank Premises at cost Machinery at cost Motor vehicles at cost Accumulated depreciation at 31.12.2019: Premises Machinery Motor vehicles Sales Purchases Motor expenses Repairs to machinery Sundry expenses Wages and salaries Directors' remuneration Retained profits as at 31.12.2019 General reserve Dr £ (1) Authorised share capital: £500,000 in ordinary shares of 20p. (ii) Inventory at 31 December 2020 £102,400. (iii) Motor expenses owing £280. 169,600 81,300 17,900 265,000 109,100 34,700 623,800 4,300 3,600 2,900 241,500 82,600 Cr £ 375,000 74,900 60,000 41,400 18,200 975,600 31,200 60,000 1,636,300 1,636,300 Given the following information, you are to draw up an income statement for the year ending 31 December 2020, and a balance sheet as at that date: (iv) Ordinary dividend proposed of 5 per cent. (v) Transfer £7,500 to general reserve. (vi) Provide for depreciation: motor vehicles and machinery 20% on cost; premises 5% on cost. The following is the trial balance of Tully Ltd as on 31 December 2020: Share capital issued: ordinary shares 20p Accounts receivable and accounts payable Inventory 31 December 2019 Bank Premises at cost Machinery at cost Motor vehicles at cost Accumulated depreciation at 31.12.2019: Premises Machinery Motor vehicles Sales Purchases Motor expenses Repairs to machinery Sundry expenses Wages and salaries Directors' remuneration Retained profits as at 31.12.2019 General reserve Dr £ (1) Authorised share capital: £500,000 in ordinary shares of 20p. (ii) Inventory at 31 December 2020 £102,400. (iii) Motor expenses owing £280. 169,600 81,300 17,900 265,000 109,100 34,700 623,800 4,300 3,600 2,900 241,500 82,600 Cr £ 375,000 74,900 60,000 41,400 18,200 975,600 31,200 60,000 1,636,300 1,636,300 Given the following information, you are to draw up an income statement for the year ending 31 December 2020, and a balance sheet as at that date: (iv) Ordinary dividend proposed of 5 per cent. (v) Transfer £7,500 to general reserve. (vi) Provide for depreciation: motor vehicles and machinery 20% on cost; premises 5% on cost.

Answer rating: 100% (QA)

Prepare Income Statement as follows Income Statement For the year ended Dec 31 2020 Sales Less COGS ... View the full answer