QUESTION FOUR The following trial balance was extracted from the books of Night Shade Ltd. as at 30 September 2017: Sh."

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899566
Joined: Mon Aug 02, 2021 8:13 am

QUESTION FOUR The following trial balance was extracted from the books of Night Shade Ltd. as at 30 September 2017: Sh."

Post by answerhappygod »

Question Four The Following Trial Balance Was Extracted From The Books Of Night Shade Ltd As At 30 September 2017 Sh 1
Question Four The Following Trial Balance Was Extracted From The Books Of Night Shade Ltd As At 30 September 2017 Sh 1 (57.2 KiB) Viewed 9272 times
QUESTION FOUR The following trial balance was extracted from the books of Night Shade Ltd. as at 30 September 2017: Sh."000" Sh."000" 151,000 Land and buildings Motor vehicles at cost 60,000 15,000 Accumulated depreciation on motor vehicles (1 October 2016) Purchases and sales 1,204,000 1,574,050 91,000 Inventory (1 October 2016) 66,700 Revenue reserves 2,325 General expenses 244,150 Salaries and wages Electricity Bank balance 5,600 42,200 Interim dividend paid 7,000 Motor vehicles expenses 4,475 Insurance 7,150 Discounts allowed and discounts received 10,900 8.300 Bad debes written off 3,050 Accounts receivable and accounts payable 136.500 100,700 Debenture interest paid 2,400 Ordinary shares (Sh.40 par value) 160,000 Share premium 36,000 8% debentures 60,000 Cash in hand 9,000 Directors' fees 40.000 2,020,750 2.020,750 Additional information: 1. Goods costing Sh.710.000 purchased on credit on 29 September 2017. were in transit and therefore had not been entered in the books by close of business on 30 September 2017. 2 Inventory as at 30 September 2017 was valued at Sh.112.300,000. A debtor who owed the company Sh.1.500.000 was declared bankrupt. His debt has not yet been written off. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. 4. 5. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. 6. As at 30 September 2017. outstanding motor vehicles expenses amounted to Sh.125.000 while pre-paid insurance amounted to Sh.1,150,000. 7. Invoices issued amounting to Sh.950,000 had completely been omitted from the records as at 30 September 2017. Provision is to be made for outstanding debenture interest and corporation tax of Sh.22,975.000. The directors have proposed a final dividend of Sh.2.50 per share. Required: (a) Income statement for the year ended 30 September 2017. (12 marks) (b) Statement of financial position as at 30 September 2017. (3 marks) (Total: 20 marks)
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!

This question has been solved and has 1 reply.

You must be registered to view answers and replies in this topic. Registration is free.


Register Login
 
Post Reply