The trial balance of Walive Ltd. as at 31 December 2016 was as follows: Share capital...

 

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The trial balance of Walive Ltd. as at 31 December 2016 was as follows: Share capital (10,000 Sh 20 Ordinary shares) Purchases and Sales Debtors and Creditors Profit and loss 1 January 2012 Sales returns Buildings at cost Plant at cost Provision for depreciation: Plant Buildings Purchases returns Selling expenses Bank 10% Debentures Stock 1 January 2012 Provision for bad debts Operating expenses Administrative expenses Suspense account USD. 1,220,000 400,000 40,000 800,000 1,000,000 140,000 300,000 180,000 140,000 4.720.000 USD. 200,000 2,000,000 140,000 380,000 400,000 40,000 80,000 160,000 600,000 20,000 200.000 Additional information: 1. Stock at 31 December 2012 was USD 360,000. 2. Sales returns of USD.20,000 had been entered in the sales daybook as if they were sales When this error was discovered, the debtors account was corrected but the sales figure was not rectified. 3. 5000 new shares were issued during the year at USD 32. The proceeds have been credited to the suspense account. 4. A fully depreciated plant which cost USD 200,000 was sold during the year. No other entries except bank have been made. The remaining balance on the suspense account after (2 and 3) above represents the sale proceeds 5. A debtor of USD 20,000 has been declared bankrupt. A general provision is required at 5% of debtors. Rates of USD 30,000 paid in December covering half year to 30th June 2013 have not been entered in the books 7. Debenture interest has not been paid. 8. Depreciation on plant is at 10% on cost and buildings at 2% on cost 9. The directors propose to pay a dividend of USD 2 per share and transfer USD 20,000 to the general reserve. 10 Corporation tax at a rate of 30% on profits is estimated to be USD 90,000, Required: 6. (a)Suspense account for the year ended 31" December 2019 (b) Trading, profit and loss account for the year ended 31 December 2019 (c) Balance sheet as at 31 December 2019 The trial balance of Walive Ltd. as at 31 December 2016 was as follows: Share capital (10,000 Sh 20 Ordinary shares) Purchases and Sales Debtors and Creditors Profit and loss 1 January 2012 Sales returns Buildings at cost Plant at cost Provision for depreciation: Plant Buildings Purchases returns Selling expenses Bank 10% Debentures Stock 1 January 2012 Provision for bad debts Operating expenses Administrative expenses Suspense account USD. 1,220,000 400,000 40,000 800,000 1,000,000 140,000 300,000 180,000 140,000 4.720.000 USD. 200,000 2,000,000 140,000 380,000 400,000 40,000 80,000 160,000 600,000 20,000 200.000 Additional information: 1. Stock at 31 December 2012 was USD 360,000. 2. Sales returns of USD.20,000 had been entered in the sales daybook as if they were sales When this error was discovered, the debtors account was corrected but the sales figure was not rectified. 3. 5000 new shares were issued during the year at USD 32. The proceeds have been credited to the suspense account. 4. A fully depreciated plant which cost USD 200,000 was sold during the year. No other entries except bank have been made. The remaining balance on the suspense account after (2 and 3) above represents the sale proceeds 5. A debtor of USD 20,000 has been declared bankrupt. A general provision is required at 5% of debtors. Rates of USD 30,000 paid in December covering half year to 30th June 2013 have not been entered in the books 7. Debenture interest has not been paid. 8. Depreciation on plant is at 10% on cost and buildings at 2% on cost 9. The directors propose to pay a dividend of USD 2 per share and transfer USD 20,000 to the general reserve. 10 Corporation tax at a rate of 30% on profits is estimated to be USD 90,000, Required: 6. (a)Suspense account for the year ended 31" December 2019 (b) Trading, profit and loss account for the year ended 31 December 2019 (c) Balance sheet as at 31 December 2019

Answer rating: 100% (QA)

Suspense Account Particulars Amount Dr Particulars Amount Cr To share capital 160000 By Balance 2000... View the full answer