The following is the trial balance of Transit Ltd as at March 19x8 Ordinary share capital...

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The following is the trial balance of Transit Ltd as at March 19x8 Ordinary share capital (Sh 1 each) Leasehold property at cost Motor vans at cost(used for distribution) Provision for depreciation motor van to 31 march 19x7 Administration expenses Distribution expenses Stock 31 march 19x7 Purchases Sales Director's remuneration Rent receivables Investment at cost Investment income 7% debentures Debenture interest Bank interests Sh 75,000 2,500 7,650 10,000 12,000 138,750 25,000 6,750 1,050 162 Sh 42,000 1,000 206,500 3,600 340 15,000 Bank overdraft Debtors and creditors Interim dividend paid Profit and loss account 31,000 1,260 311,122 730 24,100 17,852 311,122 You ascertain the following: All the motor vans were purchased on 1 April 19x5. Depreciation has been and is to be provided at the rate of 20% per annum on cost from the date of purchase to the date of sale. On 31 march 19x8 one van, which had cost 900 was sold for 550, as part settlement of the price of 800 of a new van, but no entry with regard to this transactions were made in the cashbooks. The estimated corporation tax liability for the year to March 10x8 is 12700 It is proposed to pay a final dividend of 10% for the year to 31 march 19x8 Stock at the lower of cost or net realizable value on 31 March 19x8 is 16700 Required: Prepare without taking into account the relevant statutory provisions: a) Profit and loss statement for the year ended 31 march 19x8. A statement of financial position as at that date. b) The following is the trial balance of Transit Ltd as at March 19x8 Ordinary share capital (Sh 1 each) Leasehold property at cost Motor vans at cost(used for distribution) Provision for depreciation motor van to 31 march 19x7 Administration expenses Distribution expenses Stock 31 march 19x7 Purchases Sales Director's remuneration Rent receivables Investment at cost Investment income 7% debentures Debenture interest Bank interests Sh 75,000 2,500 7,650 10,000 12,000 138,750 25,000 6,750 1,050 162 Sh 42,000 1,000 206,500 3,600 340 15,000 Bank overdraft Debtors and creditors Interim dividend paid Profit and loss account 31,000 1,260 311,122 730 24,100 17,852 311,122 You ascertain the following: All the motor vans were purchased on 1 April 19x5. Depreciation has been and is to be provided at the rate of 20% per annum on cost from the date of purchase to the date of sale. On 31 march 19x8 one van, which had cost 900 was sold for 550, as part settlement of the price of 800 of a new van, but no entry with regard to this transactions were made in the cashbooks. The estimated corporation tax liability for the year to March 10x8 is 12700 It is proposed to pay a final dividend of 10% for the year to 31 march 19x8 Stock at the lower of cost or net realizable value on 31 March 19x8 is 16700 Required: Prepare without taking into account the relevant statutory provisions: a) Profit and loss statement for the year ended 31 march 19x8. A statement of financial position as at that date. b)

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