Q3 Form the trial balance given below for Star Ltd. Prepare final accounts for the year ending 30 June 2020. Show all the relevant workings. Star Ltd has the following trial balance as at 30th June 2020 RO RO Sales / Revenue 2,452,050 Purchases 1,360,000 Furniture 601,600 Furniture accumulated Depreciation as at 1 July 2019 232,000 Inventory at 1 July 2019 299,200 Cash at Bank 437,750 Debtors 973,350 Creditors 677,025 Buildings 1,995,000 Buildings Accumulated Depreciation as at 1 July 2019 1,218,000 Marketing overheads 221,400 Directors fees 24,800 Insurance 59,800 Finance cost 5,850 Selling and Distribution costs 1,825 Retained earnings as at 1 July 2019 276,500 Equity Shares at 1 July 2019 1,125,000 TOTAL 5,980,575 5,980,575 The following information is also available:- a) Closing Inventory on 30th June 2020 was valued at RO 282,200 b) Insurance includes an invoice for RO 19,000 the year ending 31 December 2020 c) Marketing overheads of RO15,950 were still outstanding at the year end d) Depreciation is provided on a straight-line basis of 5% on cost for Buildings and 12% on straight-line basis Furniture e) Bad Debt Provision to be calculated on the Debtors at 5% per annum. Required Prepare an Income Statement and a Statement of Financial Position for Star Ltd as at 30 June 2020, showing full workings. (i) Income statement (ii) Balance Sheet

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 36BE: Brief Exercise 3-36 Preparing and Analyzing Closing Entries At December 31, 2019, the ledger of...

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Form the trial balance given below for Star Ltd. Prepare final accounts for the year ending 30 June 2020. Show all the relevant workings.

Star Ltd has the following trial balance as at 30th June 2020

	RO	RO
Sales / Revenue		2,452,050
Purchases	1,360,000
Furniture	601,600
Furniture accumulated Depreciation as at 1 July 2019		232,000
Inventory at 1 July 2019	299,200
Cash at Bank	437,750
Debtors	973,350
Creditors		677,025
Buildings	1,995,000
Buildings Accumulated Depreciation as at 1 July 2019		1,218,000
Marketing overheads	221,400
Directors fees	24,800
Insurance	59,800
Finance cost	5,850
Selling and Distribution costs	1,825
Retained earnings as at 1 July 2019		276,500
Equity Shares at 1 July 2019		1,125,000
TOTAL	5,980,575	5,980,575

The following information is also available:-

a) Closing Inventory on 30th June 2020 was valued at RO 282,200
b) Insurance includes an invoice for RO 19,000 the year ending 31 December 2020
c) Marketing overheads of RO15,950 were still outstanding at the year end
d) Depreciation is provided on a straight-line basis of 5% on cost for Buildings and 12% on straight-line basis Furniture
e) Bad Debt Provision to be calculated on the Debtors at 5% per annum.

Required

Prepare an Income Statement and a Statement of Financial Position for Star Ltd as at 30 June 2020, showing full workings.

(i) Income statement
(ii) Balance Sheet

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