Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial balance was extracted from the books of the company on 31 March 2020, after the preparation of the tra ding account: Dr Cr Kshs 200.000 Kshs Ordinary share capital, fully paid Land and buildings at cost Sundry debtors Fumiture and fittings at cost General expenses Sundry Creditors Stock at 31 March 2020 Bank Trading account: gross profit Office salaries and expenses Accumulated provision for depreciation on fumiture and fittings Share premium account Advertising and selling expenses Bad debts Provision for doubtful debts Profit andloss account Directors' fees 170.000 38.300 80.000 3.800 25.000 42.000 12.000 98.050 25.000 32.000 20.000 5.000 250 600 12.000 11.300 387,650 387,650 'The following information is given: i. The provision for doubtful debtors is to be adjusted to Kshs 700. Depreciation is to be provided in respect of fumiture and fittings at 10% per annum on cost. Kshs 15,000 is to be transferred from profit and loss to general reserve. iv. Provision for corporation tax was Kshs. 5,000 Provide for a proposed dividend on share capital at 10%. Required to Prepare: i. Profit and Loss Account and Appropriation Account (income Statement) for the year ended 31 March i. 1. v. 2020. ii. Balance Sheet (Statement of Financial position) as at that date.
Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial balance was extracted from the books of the company on 31 March 2020, after the preparation of the tra ding account: Dr Cr Kshs 200.000 Kshs Ordinary share capital, fully paid Land and buildings at cost Sundry debtors Fumiture and fittings at cost General expenses Sundry Creditors Stock at 31 March 2020 Bank Trading account: gross profit Office salaries and expenses Accumulated provision for depreciation on fumiture and fittings Share premium account Advertising and selling expenses Bad debts Provision for doubtful debts Profit andloss account Directors' fees 170.000 38.300 80.000 3.800 25.000 42.000 12.000 98.050 25.000 32.000 20.000 5.000 250 600 12.000 11.300 387,650 387,650 'The following information is given: i. The provision for doubtful debtors is to be adjusted to Kshs 700. Depreciation is to be provided in respect of fumiture and fittings at 10% per annum on cost. Kshs 15,000 is to be transferred from profit and loss to general reserve. iv. Provision for corporation tax was Kshs. 5,000 Provide for a proposed dividend on share capital at 10%. Required to Prepare: i. Profit and Loss Account and Appropriation Account (income Statement) for the year ended 31 March i. 1. v. 2020. ii. Balance Sheet (Statement of Financial position) as at that date.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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Transcribed Image Text:Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial
balance was extracted from the books of the company on 31 March 2020, afterthe preparation of the tra ding
асcount:
Dr
Kshs
Kshs
200.000
Ordinary share capital, fully paid
Land and buildings at cost
Sundry debtors
Fumiture and fittings at cost
General expenses
Sundry Creditors
Stock at 31 March 2020
Bank
Trading account: gross profit
Office salaries and expenses
Accumulated provision for depreciation on fumiture and fittings
Share premium account
Advertising and selling expenses
Bad debts
Provision for doubtful debts
Profit andloss account
Directors' fees
170.000
38.300
80.000
3.800
25.000
42.000
12.000
98.050
25.000
32.000
20.000
5.000
250
600
12.000
11.300
387,650
387,650
The following information is given:
The provision for doubtful debtors is to be adjusted to Kshs 700.
i.
i.
Depreciation is to be provided in respect of fumiture and fittings at 10% per annum on cost.
Kshs 15,000 is to be transferred from profit andloss to general reserve.
iv.
111
Provision for corporationtax was Kshs. 5,000
Provide for a proposed dividend on share capital at 10%.
Required to Prepare:
Profit and Loss Account and Appropriation Account (income Statement) forthe year ended 31 March
v.
i.
2020.
ii.
Balance Sheet (Statement of Financial position) as atthat date.
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