Lealylongleads Ltd. has the following results for the period from 1 October 2019 to 31 December 2020:
Question:
Lealylongleads Ltd. has the following results for the period from 1 October 2019 to 31
December 2020:
Notes £
Trading profits before capital allowances 1,591,440
Dividend received 1 44,000
Bank interest received 2 14,800
Income from property 3 30,000
Profit on sale of Warehouse 4 50,000
Gift Aid donations 5 9,600
Notes:
1. Dividends were received as follows:
7 January 2020 £20,200
7 October 2020 £23,800
2. Bank interest is accrued until it is finally credited to the company’s bank account every 4 months.
Schedule of bank interest received:
31 December 2019 £3,200
30 April 2020 £3,600
31 August 2020 £3,800
31 December 2020 £4,200
The bank interest accrued on 30 September 2019 was £600 and £1,100 on 30 September 2020.
3. The property was let on 1 February 2020 at a rent of £2,500 per month payable quarterly in advanced on the 1st day of February, May, August and November. The estate agents charge 5% of the rent as their fee to manage the property, which has not yet been accounted for.
4. The Warehouse was acquired in May 2009 (RPI 212.8) for £150,000 and disposed for £200,000 on 14 April 2020 (RPI 278.1).
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta