The following balances were obtained from the books of Hakuna Matata ple as at August 31,...

  

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The following balances were obtained from the books of Hakuna Matata ple as at August 31, 2014: 350,000 Premises 10% Mortgage Retained earnings Goodwill 200,000 62,500 200,000 372,160 Debtors Creditors General reserve 181.200 50,000 40,000 Management expenses Ordinary share capital a $2 5% Preference shares a $2 400,000 200,000 Motor vehicles 60,000 Provision for dep'n on vehicle 10% Secured loan 20,000 60,000 1,750,000 Sales Cost of sales 1,200,000 50,000 Fixtures & fittings Prov. for dep'n on fix & fit Stock at Aug 31, 2014 15,000 278,100 4,000 8,000 35,000 14,000 5,000 72,440 125,000 2.876 200 Loan interest Insurance Directors' fees Mortgage interest Interim ord. shares dividends Cash & bank Wages & salaries 2.876.200 Additional information: a) Provide for depreciation as follows fixtures and fittings 10% on the reducing balance, and motor vehicles 10% on the straight-line basis b) Wages and salaries for $5,000 is prepaid, while insurance is owing by $7,000 c) The preference shares dividend is to be accounted for d) Goodwill impaiment amounted to 25% e) Corporation tax is estimated at $25,000 ) The following expenses must be appropriated: Selling & Dist 40% 2/3 Admin Wages & salaries Insurance Management fees Directors' fees 60% 1/3 60% 40% 100% Depreciation charges 50% 50% Required: Prepare the final accounts for the year ended August 31, 2014. The following balances were obtained from the books of Hakuna Matata ple as at August 31, 2014: 350,000 Premises 10% Mortgage Retained earnings Goodwill 200,000 62,500 200,000 372,160 Debtors Creditors General reserve 181.200 50,000 40,000 Management expenses Ordinary share capital a $2 5% Preference shares a $2 400,000 200,000 Motor vehicles 60,000 Provision for dep'n on vehicle 10% Secured loan 20,000 60,000 1,750,000 Sales Cost of sales 1,200,000 50,000 Fixtures & fittings Prov. for dep'n on fix & fit Stock at Aug 31, 2014 15,000 278,100 4,000 8,000 35,000 14,000 5,000 72,440 125,000 2.876 200 Loan interest Insurance Directors' fees Mortgage interest Interim ord. shares dividends Cash & bank Wages & salaries 2.876.200 Additional information: a) Provide for depreciation as follows fixtures and fittings 10% on the reducing balance, and motor vehicles 10% on the straight-line basis b) Wages and salaries for $5,000 is prepaid, while insurance is owing by $7,000 c) The preference shares dividend is to be accounted for d) Goodwill impaiment amounted to 25% e) Corporation tax is estimated at $25,000 ) The following expenses must be appropriated: Selling & Dist 40% 2/3 Admin Wages & salaries Insurance Management fees Directors' fees 60% 1/3 60% 40% 100% Depreciation charges 50% 50% Required: Prepare the final accounts for the year ended August 31, 2014.

Answer rating: 100% (QA)

Solution In the books of Hakuna Matata Plc Profit and loss account for the year ended 31st august 20... View the full answer