ed Bamboozer Ltd was formed on 1 December 20 6 to carry on business as wholesaler...

   

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ed Bamboozer Ltd was formed on 1 December 20 6 to carry on business as wholesaler of staple food, within the southern sector of the country. (2) Proper accounts records have been maintained for trading transactions but all capital receipts and some capital payments have been credited and debited to one account in the nominal ledger. (3) The balances standing on the company's records at 30 November 20 *7. after a drafted trading, profit and loss account, are as set out below. The following fixed assets were bought during the year. Depn € € 282.506 296,400 13,894 73.328 14,666 58,662 138.320 34.580 103.740 508,048 (63,140) Freehold depots Office and warehouse equipment Vehicles Cost € Total Assets book value Operation profit after depreciation Trade debtors Creditors Stocks at cost Audit fee - payment on account Provision for bad debt Cash at bank Capital receipts and payments account Depreciation rates are based on the cost of assets in use at the year-end. Thierry Akolatse Jasinta Akolatse Ransford Akolatse Others 444,908 369.666 117,325 68,759 241.373 30,000 15,000 35,000 Authorized share capital is €300,000 in €1 ordinary shares. 2.470 1,853 (4) The share register has been written up properly and records of €1 ordinary shares, issued at a price of €2.47 per share, as follows. No. of shares issued 80,000 28,042 Dr 394,583 Cr (5) Cash has been received for all shares issued with the following exceptions. Thierry Akolatse has been issued with 10.000 of his 80,000 shares in recognition of the goodwill attracting to his name after long experience in the trade. (ii) Ransford Akolatse owed €6.175 in respect of his shares at 30 November 2017 but this was received in December 20 *7. (6) Preliminary and formation expenses totalling €3,705 has been debited to the capital receipts and payment account, together with an initial payment of €1,730 and three monthly instalments (out of twenty-four) of €620 each on computers bought under a hire purchase agreement. The computers, which can be classified as office equipment, had a cost excluding credit charges of €13.585. (7) The remaining credit balance on capital receipts and payments account represents moneys lent to the company by Jasinta Akolatse carrying interest (not yet provided for) at 10% per annum from 1 December 20*6 and repayable on 1 January 20 *9. Adjustments are also required for the following matters: (8) Directors' remuneration of €67.925 of the year has been fixed but not yet paid or provided for. The full audit fee for the year is €5,680. (ii) (iii) (iv) (v) Requirements The bad debt provision is to be adjusted to 1% of trade debtors. A dividend of 10p per share on all shares in issue is proposed. Provision is to be made of €70.210 for corporation tax. Prepare the profit and loss account for the year ended 30 November 20 *7 and balance sheet at that date. ed Bamboozer Ltd was formed on 1 December 20 6 to carry on business as wholesaler of staple food, within the southern sector of the country. (2) Proper accounts records have been maintained for trading transactions but all capital receipts and some capital payments have been credited and debited to one account in the nominal ledger. (3) The balances standing on the company's records at 30 November 20 *7. after a drafted trading, profit and loss account, are as set out below. The following fixed assets were bought during the year. Depn € € 282.506 296,400 13,894 73.328 14,666 58,662 138.320 34.580 103.740 508,048 (63,140) Freehold depots Office and warehouse equipment Vehicles Cost € Total Assets book value Operation profit after depreciation Trade debtors Creditors Stocks at cost Audit fee - payment on account Provision for bad debt Cash at bank Capital receipts and payments account Depreciation rates are based on the cost of assets in use at the year-end. Thierry Akolatse Jasinta Akolatse Ransford Akolatse Others 444,908 369.666 117,325 68,759 241.373 30,000 15,000 35,000 Authorized share capital is €300,000 in €1 ordinary shares. 2.470 1,853 (4) The share register has been written up properly and records of €1 ordinary shares, issued at a price of €2.47 per share, as follows. No. of shares issued 80,000 28,042 Dr 394,583 Cr (5) Cash has been received for all shares issued with the following exceptions. Thierry Akolatse has been issued with 10.000 of his 80,000 shares in recognition of the goodwill attracting to his name after long experience in the trade. (ii) Ransford Akolatse owed €6.175 in respect of his shares at 30 November 2017 but this was received in December 20 *7. (6) Preliminary and formation expenses totalling €3,705 has been debited to the capital receipts and payment account, together with an initial payment of €1,730 and three monthly instalments (out of twenty-four) of €620 each on computers bought under a hire purchase agreement. The computers, which can be classified as office equipment, had a cost excluding credit charges of €13.585. (7) The remaining credit balance on capital receipts and payments account represents moneys lent to the company by Jasinta Akolatse carrying interest (not yet provided for) at 10% per annum from 1 December 20*6 and repayable on 1 January 20 *9. Adjustments are also required for the following matters: (8) Directors' remuneration of €67.925 of the year has been fixed but not yet paid or provided for. The full audit fee for the year is €5,680. (ii) (iii) (iv) (v) Requirements The bad debt provision is to be adjusted to 1% of trade debtors. A dividend of 10p per share on all shares in issue is proposed. Provision is to be made of €70.210 for corporation tax. Prepare the profit and loss account for the year ended 30 November 20 *7 and balance sheet at that date.

Answer rating: 100% (QA)

Answer Based on the information provided here are the Profit and Loss Account for the year ended 30 ... View the full answer