Answer Happy

Grover Ltd, a trader in household items, has prepared the following trial balance as at March 31, 2022; CR DR 316,000 426,000 18,700 1.422,600 408,000 146,800 249,000 21,100 DETAILS Goodwill Ordinary share capital @ $0.80 Debtors Cost of sales 8% Debenture Creditors 6% Preference share capital @ 0.75 Closing stock Commission Revenue Utilities Provision for depreciation on equipment Provision for depreciation on building Building Office expenses General reserves Land Management fees 72,300 1,964,000 86,300 66,200 97,700 349,000 31,200 52,800 617.000 33,600
Time left 3:1 General reserves Land Management fees 12% Mortgage Equipment Interim ordinary shares dividend Bank Debenture interest Mortgage interest Retained earnings 52,800 617,000 33,600 481,000 598,000 11,200 81,200 9,400 12,200 18,700 4,045,000 4,045,000 Additional notes: i Depreciation is to be charged on the building at 15% reducing balance, and 8% on cost for the equipment ii. Goodwill should be written down by 12% ini. Utilities is owing by $12,700, while offices expenses is prepaid by $9,300 iv. Commission is prepaid by $10,200 V. The following items of expense should be apportioned as follows. Expense Office expenses Utilities Admin 60% 30% Sell & Dist. 40% 70%
V. The following items of expense should be apportioned as follows: Time left 3:10:1 Expense Office expenses Utilities Management fees Depreciation charges Admin 60% 30% 75% 90% Sell & Dist. 40% 70% 25% 10% vi. Corporation tax is estimated at $24,200 vii. Transfer $45,500 from profits to the general reserves vill. There was a new issue of 60,000 ordinary shares with a par value of $0.75 cach; the amount collected was $80,000 ix. The full preference shares dividend will be honoured Required: Prepare Grover Ltd's statement of profit or loss (including EPS). All workings MUST be shown. Recommended time: 45 minutes