question archive The following trial balance has been taken from MAW Ltd on 30 April 2013, after thepreparation of the Trading and Profit and Loss Account for the year
The following trial balance has been taken from MAW Ltd on 30 April 2013, after thepreparation of the Trading and Profit and Loss Account for the year
Subject:AccountingPrice: Bought3
The following trial balance has been taken from MAW Ltd on 30 April 2013, after thepreparation of the Trading and Profit and Loss Account for the year.Dr CrOrdinary shares (£1) 310,00010% preference shares 100,00010% debenture 2010 120,000Profit for year ended 30/04/2013 137,000Profit for year ended 30/04/2012 120,000Stock 250,000Premises 300,000Plant and machinery 200,000Motor vehicles 70,000Office equipment 60,000Depreciation provisions:Premises 118,000Plant and machinery 100,000Motor vehicles 60,000Office equipment 50,000Debtors 445,000Creditors 170,000Provision for bad and doubtful debt 16,000Prepayments 6,000Accruals 18,000Bank 12,0001,331,000 1,331,000TASKa) Draw up the appropriation section of the Profit and Loss Account (Income Statement) andprepare a balance sheet (Statement of Financial Position), taking into account the following:• Corporation tax of £40,000 is to be allowed for• The preference share dividend is to be paid as is a 15% ordinary share dividend• Interest on the debenture needs to be accounted for. (14 marks)b) What information could be gleaned from an auditor’s report which might be of use to thecredit manager?
