It is assumed that the price of30 per share applies to the 24000 shares in

It is assumed that the price of30 per share applies

This preview shows page 8 - 14 out of 21 pages.

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 Download more at
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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 Download more at
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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 £ £ £ Download more at
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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 Download more at
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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’ Download more at
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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
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