- Exercise 1 The Following Balances Have Been Taken From The Ledger Of Philips Plc At 30 June 2011 Ghs000s Sales 7 170 Pu 1 (108.58 KiB) Viewed 10 times
- Exercise 1 The Following Balances Have Been Taken From The Ledger Of Philips Plc At 30 June 2011 Ghs000s Sales 7 170 Pu 2 (136.99 KiB) Viewed 10 times
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Exercise 1 The following balances have been taken from the ledger of Philips plc at 30 June 2011. GHS000s Sales 7,170 Purchases 3,300 Returns In 250 Returns Out 410 Stock at 1.7.20-0 Carriage In 620 65 Warehouse Costs 40 Wages and Salaries 1,599 58 Selling Expenses Audit Fees 10
4. Directors' Emoluments Rent Received Equipment at cost Vehicles at cost Provision for Doubtful Debts 1.7.20-0 Provision for Depreciation 1.7.20-0 Equipment Vehicles Loss on sale of equipment Dividends Received Ordinary dividend paid Profit and loss Balance brought forward Notes 1. 2. 6. 12 6 1,400 700 Stock at end of year is valued at GHS470,000. Depreciation for the year is to be charged as follows: Equipment 15% of cost Vehicles - 20% on diminishing balance. Depreciation of Equipment is to be charged to Cost of Sales, Distribution and Administration in the ratio of 2:1:2 respectively. Vehicles are used solely for the delivery of goods to customers. 3. Wages and Salaries owing GHS25,000. Wages and Salaries are to be split between Cost of Sales, Distribution and Administration in the ratio of 3:2:2. Selling Expenses paid in advance - GHS7,000. 5. Provision for Doubtful Debts is to be increased by GHS3,000. 2 Corporation Tax for year is estimated at GHS448,000. 7. The Directors propose to: ● pay a final dividend of GHS450,000 ● transfer GHS200,000 to Reserves. You are required to prepare the Profit and Loss Account for year ended 30 June 20-1 for publication. Do not produce Notes to the Accounts but show working notes. 8 560 250 2 20 300 205