Answer Happy

4a) Explain how the following transactions would be recorded in
the financial statements of a company with a financial year ended
31 March 2022
4b) Prepare a journal entry to correct this error
) 4a) Explain how the following transactions would be recorded in the financial statements of a company with a financial year ended 31 March 2022: (12 marks) i. There is a tax liability of £70,000 in respect of its profit for the year of £400,000 ii. A final dividend payment of £60,000 was authorised at a meeting held by the Directors on the 1 March 2022. iii. A factory in use in the reporting period and valued at £250,000 was completely destroyed by fire on the 5 April 2022. You are to assume going concern. iv. Property with a historic cost of £250,000 was revalued at £400,000 at the end of the financial year. V. Closing inventory valued at the year end at £78,000 had a resale value of £65,000. The Company issued 80,000 ordinary shares of £0.50p each for £2 per share on the 1 January 2022. The following entry was recorded in the Company's ledgers: Debit Credit Cash at bank 160,000 160,000 Share capital