Reference no: EM131537936
Question: Conway and Bangor Ltd. has an authorised capital of £30,000 divided into 20,000 ordmary shares of £1 each and 10,000 6 per cent preference shares of £1 each.
The following were the balances on the books as at 31st March, 1962:
Re-printed by courtesy of the Royal Society of Arts (R.S.Α.).
The following matters are to be taken into account:
(a) The stock on hand at 31st March, 1962, was valued at £9,898.
(b) Salaries accrued at 31st March, 1962 amounted to £260.
(c) Insurance paid in advance at 31st March, 1962 amounted to £49.
(d) The provision for bad debts is to be made up to £404.
(e) The plant and machinery is to be depreciated at the rate of 10 per cent.
(f) The necessary provision for interest on the debentures is to be made.
Prepare the Trading and Profit and Loss Account of the company for the year ending 31st March, 1962, and the Balance Sheet at that date.
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