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 2020
400,000 Ordinary shares of s. 10 @4,000,000300,000
10% Preference Share of Sh. 10 @3,000,000
Share premiums1,000,000
Retained Profits2,400,000
Revaluation Reserve1,200,000
15% Debentures1,600,000
Land and buildings (cost)5,480,000
Motor vehicles ( net as at 31st Dec 20137,200,000
Plant and machinery (net as at 31st Dec.2013)1,440,000
Furniture (N.B.V)600,000
Computers (N.B.V)100,000
Stocks1,080,000
Debtors and creditors760,000720,000
Bank balance720,000
Cash balance80,000
Gross profit for the year 6,740,000
Interim dividends: Preference200,000
Ordinary80,000
Provision for depreciation: Administrative expenses1,700,000
Selling and distribution cost810,000
Finance cost120,000
Investments300,000
Provision for bad debts 4,000
Investment income6,00020,67020,670
Additional information
1.Sh. 200,000 to be transferred to general reserves
2.Proposed dividends; Preference dividends to be paid and a final dividend of 5% be made on Ordinary shares
3.Distribution expenses paid in advance amount to sh. 200 000 and accrued administration expenses amount to sh. 1,2 M Debentures were partly accruing for the year.
4.Sh. 20,000 were to be written off as bad debts and a provision of 2% be maintained
Required:
a)Income statement and appropriation account for the year ended 31stDecember 2020.
b)Statement of financial position as at 31st December 2020
Financial accounting
ISBN: 978-1118285909
IFRS Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel