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The following trial balance was extracted from the books of Night shade Ltd. as at 30 September 2020: 24 Land and buildings Motor vehicles at cost 151,000 60,000 Accumulated depreciation on motor vehicle (1 October 2019) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2019) 91,000 Revenue reserves 66,700 General expenses Salaries and wages Electricity 2,325 244,150 5,600 Bank balance 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 debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) Share premium 160,000 36,000 8% debentures 60,000 Cash in hand 9,000 Directors' fees 40,000 2,020,750 2,020,750 Additional information: 1. IGoods costing $710 purchased on credit on 29 September 2020, were in transit and therefore had not been entered in the books by close of business on 30 September 2020. 2. Inventory as at September 2020 was valued at $112, 300 3. A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. 4. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. 5. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. 6. As at 30 September 2020, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. 7. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2020. 8. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. 9. The directors have proposed a final dividend of $2.50 per share. Required: 1. Income statement for the year ended 30 September 2020. 2. Statement of financial position as at 30 September 2020.

The following trial balance was extracted from the books of Night shade Ltd. as at 30 September 2020: 24 Land and buildings Motor vehicles at cost 151,000 60,000 Accumulated depreciation on motor vehicle (1 October 2019) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2019) 91,000 Revenue reserves 66,700 General expenses Salaries and wages Electricity 2,325 244,150 5,600 Bank balance 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 debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) Share premium 160,000 36,000 8% debentures 60,000 Cash in hand 9,000 Directors' fees 40,000 2,020,750 2,020,750 Additional information: 1. IGoods costing $710 purchased on credit on 29 September 2020, were in transit and therefore had not been entered in the books by close of business on 30 September 2020. 2. Inventory as at September 2020 was valued at $112, 300 3. A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. 4. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. 5. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. 6. As at 30 September 2020, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. 7. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2020. 8. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. 9. The directors have proposed a final dividend of $2.50 per share. Required: 1. Income statement for the year ended 30 September 2020. 2. Statement of financial position as at 30 September 2020.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 6: The following trial balance was extracted from the books of Night shade Ltd. as at 30 September 2020: %24 $ Land and buildings 151,000 Motor vehicles at cost 60,000 Accumulated depreciation on motor vehicle (1 October 2019) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2019) 91,000 Revenue reserves 66,700 General expenses 2,325 Salaries and wages 244,150 Electricity 5,600 Bank balance 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 debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) Share premium 160,000 36,000 8% debentures 60,000 Cash in hand 9,000 Directors' fees 40,000 2,020,750 2,020,750 Additional information: 1. IGoods costing $710 purchased on credit on 29 September 2020, were in transit and therefore had not been entered in the books by close of business on 30 September 2020. 2. Inventory as at September 2020 was valued at $112, 300 3. A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. 4. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. 5. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. 6. As at 30 September 2020, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. 7. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2020. 8. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. 9. The directors have proposed a final dividend of $2.50 per share. Required: 1. Income statement for the year ended 30 September 2020. 2. Statement of financial position as at 30 September 2020.
Transcribed Image Text:Question 6: The following trial balance was extracted from the books of Night shade Ltd. as at 30 September 2020: %24 $ Land and buildings 151,000 Motor vehicles at cost 60,000 Accumulated depreciation on motor vehicle (1 October 2019) 15,000 Purchases and sales 1,204,000 1,574,050 Inventory (1 October 2019) 91,000 Revenue reserves 66,700 General expenses 2,325 Salaries and wages 244,150 Electricity 5,600 Bank balance 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 debts written off 3,050 Accounts receivable and accounts payable 136,500 100,700 Debenture interest paid 2,400 Ordinary shares ($ 40 par value) Share premium 160,000 36,000 8% debentures 60,000 Cash in hand 9,000 Directors' fees 40,000 2,020,750 2,020,750 Additional information: 1. IGoods costing $710 purchased on credit on 29 September 2020, were in transit and therefore had not been entered in the books by close of business on 30 September 2020. 2. Inventory as at September 2020 was valued at $112, 300 3. A debtor who owed the company $1,500 was declared bankrupt. His debt has not yet been written off. 4. Allowance for doubtful debts is to be set at 2% of the outstanding receivables. 5. Depreciation is to be provided on motor vehicles at a rate of 20% per annum on cost. 6. As at 30 September 2020, outstanding motor vehicles expenses amounted to $125, 000 while pre-paid insurance amounted to $150. 7. Invoices issued amounted to $950 had completely been omitted from the records as at 30 September 2020. 8. Provision is to be made for outstanding debenture interest and corporation tax of $22,975. 9. The directors have proposed a final dividend of $2.50 per share. Required: 1. Income statement for the year ended 30 September 2020. 2. Statement of financial position as at 30 September 2020.
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