(a) (b) (c) (d) Suame Magazine International was formed on 1 December 2007 to acquire several...

  

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(a) (b) (c) (d) Suame Magazine International was formed on 1 December 2007 to acquire several businesses operating in the garage and car sales sector. For the year ended 30 November 2008 a draft profit and loss account has been prepared, and the balances remaining in the books after the drafts are set out in (c) below. Balances at 30 November 2008 Suspense account Trading profit Fixed assets Investments Stocks at cost Trade debtors Trade creditors and accruals Interim dividend paid Finance charges Cash at bank Notes to balances given (c) above Suspense account (i) Reference to notes Set out in (d) below (i) repayable on 1 January 2010 Less: Formation costs (ii) (iii) (iv) (vi) (vii) Combination of issued share capital (4,000,000 issued 25p shares at 45p each) and loans from directors GH₂000 160 GH₂000 1,850 940 1,360 105 772 768 695 40 178 262 GH₂000 2.055 Expenses of share issue (205) 1,850 Trading has been arrived at before charging depreciation and finance charges, and before making certain provisions. Provision for fees and tax is to be made as follows. Directors fees Auditors' fees Corporation tax (iii) Fixed asset details Land and buildings at acquisition cost Equipment at acquisition cost Goodwill at acquisition cost Equipment bought during the year 45 Land and buildings Equipment at 10% per annum at 20% per annum Investments must be written down to GHe75.000 and shown under current assets. Stocks at cost include two veteran cars. Land and buildings were revalued on 4 May 2008 at GHelm. The directors have received the permission of the shareholders and the High Court that goodwill should he written off immediately against revaluation reserve. Depreciation is to be provided as follows on the valuation/cost of assets in use at the year-end. Car 1 Car 2 GH₂000 40 29 128 GH₂000 760 250 150 1.160 200 1,360 Cost GHe000 Net realizable value GH₂000 126 75 50 40 Debtors include GHe65,000 for a Rolls Royce sold to a customer as a "veteran" car but which has now proved to be a clever reproduction put together in 2001. The customer wishes to keep the car but claims that the car's market value is GH₂25,000, and it is clear that the company will have to accept this valuation. The customer has paid a deposit of GH₂10,000. Requirement Prepare a balance sheet of Suame Magazine International Garages at 30 November 2009. The directors proposed a final dividend of 2.5p per share. The directors wish to maintain the maximum permissible fund of distributable profits, (a) (b) (c) (d) Suame Magazine International was formed on 1 December 2007 to acquire several businesses operating in the garage and car sales sector. For the year ended 30 November 2008 a draft profit and loss account has been prepared, and the balances remaining in the books after the drafts are set out in (c) below. Balances at 30 November 2008 Suspense account Trading profit Fixed assets Investments Stocks at cost Trade debtors Trade creditors and accruals Interim dividend paid Finance charges Cash at bank Notes to balances given (c) above Suspense account (i) Reference to notes Set out in (d) below (i) repayable on 1 January 2010 Less: Formation costs (ii) (iii) (iv) (vi) (vii) Combination of issued share capital (4,000,000 issued 25p shares at 45p each) and loans from directors GH₂000 160 GH₂000 1,850 940 1,360 105 772 768 695 40 178 262 GH₂000 2.055 Expenses of share issue (205) 1,850 Trading has been arrived at before charging depreciation and finance charges, and before making certain provisions. Provision for fees and tax is to be made as follows. Directors fees Auditors' fees Corporation tax (iii) Fixed asset details Land and buildings at acquisition cost Equipment at acquisition cost Goodwill at acquisition cost Equipment bought during the year 45 Land and buildings Equipment at 10% per annum at 20% per annum Investments must be written down to GHe75.000 and shown under current assets. Stocks at cost include two veteran cars. Land and buildings were revalued on 4 May 2008 at GHelm. The directors have received the permission of the shareholders and the High Court that goodwill should he written off immediately against revaluation reserve. Depreciation is to be provided as follows on the valuation/cost of assets in use at the year-end. Car 1 Car 2 GH₂000 40 29 128 GH₂000 760 250 150 1.160 200 1,360 Cost GHe000 Net realizable value GH₂000 126 75 50 40 Debtors include GHe65,000 for a Rolls Royce sold to a customer as a "veteran" car but which has now proved to be a clever reproduction put together in 2001. The customer wishes to keep the car but claims that the car's market value is GH₂25,000, and it is clear that the company will have to accept this valuation. The customer has paid a deposit of GH₂10,000. Requirement Prepare a balance sheet of Suame Magazine International Garages at 30 November 2009. The directors proposed a final dividend of 2.5p per share. The directors wish to maintain the maximum permissible fund of distributable profits,

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Answer To prepare the balance sheet of Suame Magazine International Garages at 30 November 2009 well use the provided information and organize it into ... View the full answer