Reference no: EM132467685
The following trial balance has been extracted from the "ABC Trading Limited" on 31 March 2019:
- Credit $ 5,449,800 336,000 210,000 101,600 24,000 246,800
- Trial Balance as at 31 March 2019 Debit $ Purchases and sales 3,363,780
- Carriage inwards 99,820 Fixture and fitting, at cost 1,150,000
- Motor vans, at cost 710,000
- Accumulated depreciation, at 1 April 2018 -Equipments -Motor vehicles Return inwards and outwards 156,800
- Discount allowed and received 35,000
- Trade receivables and payables 429,400
- Inventory, at 1 April 2018 377,500
- Debenture interest paid 7,000
- Administrative expenses 540,800
- Selling and distribution expenses 392.900
- Director's fee 84,000
- Other operating expenses 283,400
- Intrim dividend paid 70,000
- Cash at bank and in hand 270,500
- Allowance for doubtful debts, at 1 April 2018 Ordinary share capital 4% Debenture, repayable in 2025 Share premium General reserve Retained profits, at 1 April 2018 7,970,900
The following additional information is available: 18,200 1,000,000 350,000 80,000 60,000 94,500 7,970,900
(1) Inventory at 31 March 2019 was valued at cost of $392,500 and at net realizable value of $334,000.
(2) Sales commission of $5,000 was owing at 31 March 2019.
(3) The debentures were issued on 1 July 2018 and interest is payable half-yearly in arrears on 1 January and 1 July each year. The first interest payment for the period from 1 July 2018 to 31 December 2018 was paid and recorded on 1 January 2019.
(4) Income tax expenses of S43,300 is to be provided for.
(5) The board of directors resolved to transfer $100,000 out of profit to general reserve on 31 March 2019.
(6) Administrative expenses include an insurance of $2,400 paid for the year from 1 October 2018 to 30 September 2019. Depreciation is to be provided for non-current assets as follows: - Fixtures and fittings 15% per annum using the straight line method - Motor vans 25% per annum using reducing balance method
(8) Allowance for doubtful debts at 31 March 2019 was estimated to be $20,000
(9) The director propose a final dividend of $10,000
Required:
Question 1: Prepare for ABC Trading Limited,
(a) a statement of comprehensive income for the year ended 31 March 2019.
(b) a statement of financial position as at 31 March 2019.
Attachment:- ABC trading.rar