The following balances were taken from the ledger of Balmay plc on 31 March 2011. Net Sales GHS000s 15,010 Opening Stock

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The Following Balances Were Taken From The Ledger Of Balmay Plc On 31 March 2011 Net Sales Ghs000s 15 010 Opening Stock 1 (157.08 KiB) Viewed 15 times

The Following Balances Were Taken From The Ledger Of Balmay Plc On 31 March 2011 Net Sales Ghs000s 15 010 Opening Stock 2 (127.54 KiB) Viewed 15 times

The following balances were taken from the ledger of Balmay plc on 31 March 2011. Net Sales GHS000s 15,010 Opening Stock Net Purchases 940 6,470 Warehousing Expenses 996 Wages Insurance 3,206 350 Rent 954 Discounts Bad Debts Distribution Expenses Administration Expenses Debenture Interest (half year) Delivery Vehicles at cost Equipment at cost Provision for Depreciation at 1 April 20-0: Delivery Vehicles Equipment Provision for Doubtful Debts at 1 April 20-0 Investment Income Directors' Fees Auditors' Fees Profit on Sale of Delivery Vehicles Interim Ordinary Dividend Retained profits brought forward Notes 1. 2. 24 (Cr) 5 34 22 860 200 360 75 8 25 120 80 8 70 185 Stock at 31 March 20-1 was valued at GHS980,000. Provide for depreciation as follows: Delivery Vehicles - 25% on the diminishing balance Equipment 10% on cost. Equipment depreciation is to be split as follows - Cost of sales - 40% Distribution- 10% Administration -50%. 3. On 31 March 20-1 the following amounts were outstanding - Rent - GHS12,000 Debenture Interest - GHS6,000. 4. On 31 March 20-1 Distribution Expenses of GHS9,000 were prepaid.
5. Rent, Insurance and Wages are to be split 2:2:3 amongst Cost of Sales, Distribution and Administration respectively. 6. Provision for Doubtful Debts is to be increased to GHS10,000. 7. Provide for Corporation Tax at the rate of 25%. 8. The Directors propose to: • Pay Preference dividend of GHS60,000 Pay a final Ordinary dividend of GHS70,000. You are required to prepare, from the above information: (a) Trading and Profit and Loss Accounts for the year ended 31 March 20-1 for internal use. (b) Profit and Loss Account for the year ended 31 March 20-1 for external use.