It is assumed that the price of30 per share applies

It is assumed that the price of£30 per share applies to the 24,000 shares in Gesta Ltd and not to the
20,000 shares in Prep Ltd).
NUMBER TWO
Cow and Mice
(a) Trading and Profit and Loss Account for the year ended 31 st December 2001
HO £ BRANCH
£
COMB. £
Sales
Opening Stock
Purchases/GDS from HO
Goods sent to Branch
Closing stock
Cost of sales
Gross profit
Salaries & wages
Carriage & traveling
Administrative expenses
Increase/(Decrease) Bad Debt
Prov.
39,000
13,000
37,000
50,000
(18,000)
32,000
(14,440)
17,560
21,440
4,500
2,200
1,440
50
150
26,000
4,400
17,200
21,600
(6,570)
15,030
10,970
3,200
960
960
20)
110
65,000
17,400
37,000
54,400
21,810
32,590
32,410
7,700
3,160
2,400
30
260
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Depreciation: Furniture &
Fittings
Trade & General Expenses
Commission to Manager
Net Profit
Commission to cow
Interest on Fixed Capital:
Cow
Mice
Share of profits:
Cow (¾)
Mice(¼)
3,200
-
_____
11,540
9,900
1,800
360
____
7,370
3,600
840
240
8,640
2,880
5,000
360
_____
18,910
13,500
900
1,080
11,520
13,500
Workings:
GP 21,440 10,970
EXPS. 11,540 7,010
9,900 3,960
Comm1/11) 900 360
NP 9,000 3,600
HO Bks. BR.Curr. A/c
B/f 6,800 CIT A/c 2,400
Admin.Exps 960 GIT A/c 800
HO P & L A/c 3,600 c/d 8,160
11,360 11,360
B/d 8,160
CIT
Br.Curr A/c 2,400
GIT
Br.Curr A/c 800
Branch Books
HO Current A/c
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B/f 3,600
Pol. Admin. 960
Pol. Profit 3,600
8,160
(b) Cow and mice
Balance Sheet as at 31 st December 2001
Non Current Assets: Cost £ Accum.Deprec. £ £
Furniture & Fittings
Current Assets:
Stock on hand
In transit
Debtors:
Deduct: Prov.
Cash in Transit
Cash at Bank HO)
Current Liabilities:
Bank Overdraft BR)
Creditors
Accruals Manager’s
Comm)
2,600
21,010
800
10,000
830
1,110
21,810
9,170
2,400
__600
33,980
1,350
6,200
120
_7,670
1,490
26,310
27,800
Fixed Capital Cow £ Mice £ £
Accounts
Current Accounts
Commission
Interest
Share of profits
Drawings
14,000
900
840
8,640
10,380
(2,500)
7,880
4,000
-
240
2,880
3,120
(1,200)
1,920
18,000
9,800
27,800
BRANCH £ £ £
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Furniture & Fittings
Depreciation
Stock
Debtors
Less: Provision
Creditors
Bank Overdraft
Commission
3,000
180
1,100
460
6,570
2,820
9,390
(400)
(1,350)
_(120)
(1,870)
640
7,520
8,160
NUMBER THREE
TAITUS
Plant and Machinery a/c Motor vehicles a/c
Sh. ‘000’ Sh. ‘000’ Sh. ‘000’ Sh.‘000’
Bal b/d 4,000 Bal b/d 5,000
Opening stock a/c Debtors a/c
Sh. ‘000’ Sh.’000’ Sh.’000’ Sh.
‘000’
Bal b/d 3,000 Trading 3,000 Bal b/d
7,000 Cash 29,000
Sales 30,000 Bal c/d
8,000
37,000 37,000
Bank a/c
Sh. ‘000’ Sh. ‘000’
Cash 28,000 Bal b/d 3,000
Loan from Uncle 5,000 Drawings (Mortg.) 600
Drawings (car loan) 225
Lessor a/c 2,550
Creditors 22,000
Expenses 5,000
Bal c/d 1,625 O/draft interest 750
Drawings 500
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Secured 34,625 34,625
Cash a/c
Sh. ‘000’ Sh. ‘000’
Debtors 29,000 Bank 28,000
Drawings 1,000
29,000 29,000
Creditors a/c
Sh. ‘000’ Sh. ‘000’
Bank 22,000 Bal b/d 5,000
Bal c/d 6,000 Purchases* 23,000
28,000 28,000
*missing entry
Unsecured
Expenses a/c
Sh. ‘000’ Sh. ‘000’
Bank 5,000 P&L* 6,000
Bal.c/d-(accruals) 1,000
6,000 6,000
*missing entry
Analysed:
Unpaid wages 200 (preferential)
PAYE 260 (preferential)
Unpaid wages 100 (Unsecured)
Sundry Accruals 440 (Unsecured)
1,000
Lessor a/c (Vehicles)
Sh. ‘000’ Sh.‘000’
Bank 2,550 Bal b/d 3,500
Bal c/d 1,550 Finance cgs 600
4,100 4,100
secured
Drawings a/c
Sh. ‘000’ Sh. ‘000’
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Cash 1,000
Bank (Mortgage) 600
Bank (Car loan) 225
Bank (pers.Exps) 500 Bal c/d 2,325
2,325 2,325
Profit and Loss a/c for the 10 months to 31 October 1995
Sh. ‘000’ Sh. ‘000’
Sales 30,000
Cost of sales
Opening stock 3000
Purchases 23,000
26,000
Less closing stock (2,000)
(24,000)
Gross Profit 6,000
Expenses
General expenses 6,000
Finance cgs on leases 600
Bank overdraft interest 750 (7,350)
Net Loss (1,350)
Business Balance sheet as at 31 October 1995
Fixed Assets Sh. ‘000’ Sh. ‘000’
Plant and Machinery 4,000
Motor vehicles 5,000
9,000
Current Assets