Land O Ltd is a printing company. The balances on its ledger accounts on 31 December...
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Land O Ltd is a printing company. The balances on its ledger accounts on 31 December 20X2 and on 31 December 20X3 were as follows: 31 December 20X2 31 December 20X3 Dr Cr Dr Cr Share capital 1 each 100,000 100,000 Retained profits 132,400 132,400 Equipment at cost 62,000 102,000 Equipment: depreciation 24,000 24,000 Lease of premises 144,600 144,600 Lease amortisation 72,300 72,300 Work in progress 54,012 54,012 Receivables 81,988 95,000 Bad debt provision 4,100 4,100 Prepayment of rates 4,000 4,000 Accrued expenses 3,500 Payables 5,100 9,000 Bank 5,200 16,180 Wages 147,500 Raw materials purchases 41,988 Rates 18,000 Power 30,000 16,880 Sales 346,600 346,600 653,980 296,000 653,980 Sundry expenses Land O's accountant has not yet adjusted the accounts for the following matters: 1. The raw material purchases account has been debited with 25,000 in respect of dividend payments made to the shareholders. No inventory (stock) of materials are carried. 2. The whole of the equipment was replaced in January 20X3. The old equipment was sold for 35,000. This amount was debited to the bank account and credited to the equipment account. The cost of the new equipment, 75,000, was debited to the equipment account. No other entry has been made in this account. 3. Depreciation is to be provided on the new equipment on a straight-line basis, assuming a life of 10 years and a residual disposable value of 5,000. 4. The lease has a further five years of life. Amortisation is to be on a straight-line basis. 5. The work in progress at 31 December 20X3, valued at cost, is 52,000, including a job costed at 6,000, which has just been completed. This job is not up to specification and will have to be invoiced at 3,000 to the customer. 6. The rates account at 31 December 20X3 includes the half-yearly payment of 9,000 for the period to 31 March 20X4. 7. The bad debt provision is to be adjusted to 5 per cent of closing debtors. 8. 6,500 is to be provided in respect of the supply of power to the business up to 31 December 20X3, for which no invoice has yet been received. 9. Taxation is to be ignored. Land O Ltd is a printing company. The balances on its ledger accounts on 31 December 20X2 and on 31 December 20X3 were as follows: 31 December 20X2 31 December 20X3 Dr Cr Dr Cr Share capital 1 each 100,000 100,000 Retained profits 132,400 132,400 Equipment at cost 62,000 102,000 Equipment: depreciation 24,000 24,000 Lease of premises 144,600 144,600 Lease amortisation 72,300 72,300 Work in progress 54,012 54,012 Receivables 81,988 95,000 Bad debt provision 4,100 4,100 Prepayment of rates 4,000 4,000 Accrued expenses 3,500 Payables 5,100 9,000 Bank 5,200 16,180 Wages 147,500 Raw materials purchases 41,988 Rates 18,000 Power 30,000 16,880 Sales 346,600 346,600 653,980 296,000 653,980 Sundry expenses Land O's accountant has not yet adjusted the accounts for the following matters: 1. The raw material purchases account has been debited with 25,000 in respect of dividend payments made to the shareholders. No inventory (stock) of materials are carried. 2. The whole of the equipment was replaced in January 20X3. The old equipment was sold for 35,000. This amount was debited to the bank account and credited to the equipment account. The cost of the new equipment, 75,000, was debited to the equipment account. No other entry has been made in this account. 3. Depreciation is to be provided on the new equipment on a straight-line basis, assuming a life of 10 years and a residual disposable value of 5,000. 4. The lease has a further five years of life. Amortisation is to be on a straight-line basis. 5. The work in progress at 31 December 20X3, valued at cost, is 52,000, including a job costed at 6,000, which has just been completed. This job is not up to specification and will have to be invoiced at 3,000 to the customer. 6. The rates account at 31 December 20X3 includes the half-yearly payment of 9,000 for the period to 31 March 20X4. 7. The bad debt provision is to be adjusted to 5 per cent of closing debtors. 8. 6,500 is to be provided in respect of the supply of power to the business up to 31 December 20X3, for which no invoice has yet been received. 9. Taxation is to be ignored.
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Related Book For
Advanced Financial Accounting An IFRS Standards Approach
ISBN: 9781285428765
4th Edition
Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah
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