The Following Trial Balance Was Extracted From the Books of KINJO Ltd at 31 December 2019...

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The Following Trial Balance Was Extracted From the Books of KINJO Ltd at 31 December 2019 £ Share capital authorized and issued: 80,000 ordinary shares of £1 each Freehold premises at cost 80,000 59,000 Motor vans Balance 1 January 2018 at cost Additions less sale proceeds Provisions for depreciation of motor vans to 31 December 15,000 650 2018 6,750 Stock in trade 31 December 2018 Balance at bank 13,930 6,615 Provision for doubtful debts 31 December 2018 Trade debtors and creditors 275 12,395 11,380 Directors' remuneration 4,000 Wages and salaries Motor and delivery expenses 13,127 3,258 Rates 700 Purchases 108,440 Sales 142,770 Legal expenses General expenses Profit and loss account: balance at 31 December 2018 644 5,846 2,430 243.605 243.605 You are given the following information. Stock in trade, 31 December 2019, £10,500. ii. Rates paid in advance, 31 December 2019, £250. iii. Debts of £1,075 to be written off and the provision to be increased to £450. iv. On 1 January 2019, a motor van which had cost £680, was sold for £125. v. Depreciation provided for this van up to 31 December 2018 was £475. vi. Provide for depreciation of motor vans (including additions) at 20% of cost. vii. The balance on legal expenses account included £380 in connection with the purchase of one of the freehold properties. viii. The directors have decided to recommend a dividend of 4 %. i. Required: With particular emphasis on presentation i) Prepare a trading and profit and loss account for the year 2019. ii. Balance sheet at 31 December 2019. The Following Trial Balance Was Extracted From the Books of KINJO Ltd at 31 December 2019 £ Share capital authorized and issued: 80,000 ordinary shares of £1 each Freehold premises at cost 80,000 59,000 Motor vans Balance 1 January 2018 at cost Additions less sale proceeds Provisions for depreciation of motor vans to 31 December 15,000 650 2018 6,750 Stock in trade 31 December 2018 Balance at bank 13,930 6,615 Provision for doubtful debts 31 December 2018 Trade debtors and creditors 275 12,395 11,380 Directors' remuneration 4,000 Wages and salaries Motor and delivery expenses 13,127 3,258 Rates 700 Purchases 108,440 Sales 142,770 Legal expenses General expenses Profit and loss account: balance at 31 December 2018 644 5,846 2,430 243.605 243.605 You are given the following information. Stock in trade, 31 December 2019, £10,500. ii. Rates paid in advance, 31 December 2019, £250. iii. Debts of £1,075 to be written off and the provision to be increased to £450. iv. On 1 January 2019, a motor van which had cost £680, was sold for £125. v. Depreciation provided for this van up to 31 December 2018 was £475. vi. Provide for depreciation of motor vans (including additions) at 20% of cost. vii. The balance on legal expenses account included £380 in connection with the purchase of one of the freehold properties. viii. The directors have decided to recommend a dividend of 4 %. i. Required: With particular emphasis on presentation i) Prepare a trading and profit and loss account for the year 2019. ii. Balance sheet at 31 December 2019.

Answer rating: 100% (QA)

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