The following trial balance was extracted from the books of JCV Ltd. as at 30 September 2019:
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Question:
The following trial balance was extracted from the books of JCV Ltd. as at 30 September 2019:
$ | $ | |
---|---|---|
Land and buildings | 151,000 | |
Motor vehicles at cost | 60,000 | |
Accumulated depreciation on motor vehicle (1 October 2018) | 15,000 | |
Purchases and sales | 1,204,000 | 1,574,050 |
Inventory (1 October 2018) | 91,000 | |
Revenue reserves | 66,700 | |
General expenses | 2,325 | |
Salaries and wages | 244,150 | |
Electricity | 5,600 | |
Bank balance | 42,200 | |
Interim dividend paid | 7,000 | |
Motor vehicles expenses | 4,475 | |
Insurance | 7,150 | |
Discounts allowed and discounts received | 10,900 | 8,300 |
Bad debts written off | 3,050 | |
Accounts receivable and accounts payable | 136,500 | 100,700 |
Debenture interest paid | 2,400 | |
Ordinary shares ($ 40 par value) | 160,000 | |
Share premium | 36,000 | |
8% debentures | 60,000 | |
Cash in hand | 9,000 | |
Directors’ fees | 40,000 | |
2,020,750 | 2,020,750 |
Additional information:
- 1Goods costing $710 purchased on credit on 29 September 2019, were in transit and therefore had not been entered in the books by close of business on 30 September 2019.
- Inventory as at September 2019 was valued at $112, 300
- A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off.
- Allowance for doubtful debts is to be set at 2% of the outstanding receivables.
- Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost.
- As at 30 September 2019, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150.
- Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2019.
- Provision is to be made for outstanding debenture interest and corporation tax of $22,975.
- The directors have proposed a final dividend of $2.50 per share.
Required:
- Income statement for the year ended 30 September 2019.
- Statement of financial position as at 30 September 2019.
Posted Date: