Pinarello Traders
Essay by 2297240040 • December 11, 2015 • Case Study • 454 Words (2 Pages) • 726 Views
PINARELLO Traders provided the following ledger as at 31 JANUARY 2012 and requested | ||||||||
you to complete the Trial Balance as at 31 JANUARY 2012 | ||||||||
CASH |
| 14,000 |
|
| ||||
ACCOUNT RECE | 10,000 | |||||||
BANK | 4,000 | |||||||
MOTOR VEHICLE | 5,000 | |||||||
PURCHASE | 7,500 | |||||||
SALARY | 7,500 | |||||||
RENTAL | 1,000 | |||||||
ELECTRIC BILL | 1,500 | |||||||
SALES | 50,000 | |||||||
Transactions that have taken place: | ||||||||
1. Purchased inventory for and paid in cash | 2,000 | |||||||
2. Collected MONEY from customers | 200 | |||||||
3. Paid OUTSTANDING SALARIES to staff | 2,500 | |||||||
4. Owner withdrew for personal use | 500 | |||||||
5. Purchased a motor vehicle and agreed to pay by next year. | 10,000 |
Superbikes Traders | |||||
Trial Balance as at 31 JANUARY 2012 | |||||
DEBIT | CREDIT | ||||
Cash account | 12,000 | ||||
Bank account | 1,200 | ||||
Account receivable | 9,800 | ||||
Purchase | 9,500 | ||||
Motor vehicle | 15,000 | ||||
Rent expense | 1,000 | ||||
Electric bill | 1,500 | ||||
Salary payable |
| 5,000 | |||
Account payable |
| 10,000 | |||
Sales |
| 50,000 | |||
Capital account | -15,000 | ||||
Total | 50,000 | 50,000 | |||
Ducati Speed Ltd | ||||||||
From the following information provided see if you can prepare A. Income Statement for the year 30 June 2012 and B. Statement of financial position | ||||||||
Trail Balance 30 June 2012 | ||||||||
|
| Debit | Credit | |||||
Ordinary shares authorized and issued, fully paid in SGD1 shares | 800,000 | |||||||
Preference shares account | 80,000 | |||||||
10% debentures (i.e. just like a loan issued by the company) | 100,000 | |||||||
Profit and loss account balance | 30,000 | |||||||
Land and building at cost | 850,000 | |||||||
Plant and machinery at cost | 160,000 | |||||||
Motor Van | 40,000 | |||||||
Provision for depreciation on plant and machinery | 36,000 | |||||||
Provision for depreciation of Motor van | 16,000 | |||||||
Sales | 998,000 | |||||||
Purchases | 700,000 | |||||||
Stock at 1 July 2011 | 94,000 | |||||||
Account receivable | 85,000 | |||||||
Account payable | 98,000 | |||||||
General Expenses | 15,000 | |||||||
Salaries | 104,000 | |||||||
Discount allowed (given to customers) | 2,000 | |||||||
Discount received | 6,000 | |||||||
Directors' fees | 72,000 | |||||||
Provision for bad and doubtful debts | 3,000 | |||||||
Debenture interest | 10,000 | |||||||
Telephone, stationery and photocopying | 2,000 | |||||||
Rates and insurance fees | 5,000 | |||||||
Audit fees | 1,000 | |||||||
Dividend paid out to ordinary shareholders | 16,000 | |||||||
Cash | 11,000 | |||||||
2,167,000 | 2,167,000 | |||||||
The following activities took place during the year (Figures shown are in Singapore dollars): | ||||||||
1. The closing stock at 30 June 2012 amounted to | 106,000 | |||||||
2. The rates and insurance figure includes an amount paid in advance | 1,000 | |||||||
3. Depreciation on plant and machinery is at a annum rate of | 10% | |||||||
4. Depreciation of motor vehicles is at a fixed book value of | 25% | |||||||
(i.e. 25% * cost ) | ||||||||
5. The provision for bad debts is to be increased by | 4,000 | |||||||
6. Corporation tax charged for the year is | 25000 | |||||||
7. The proposed dividend declared for the year is | 20,000 | |||||||
Ducati Speed Ltd | ||||
Income Statement for the year ended 30 June 2012 | ||||
Sales | 998,000 |
| ||
Less Cost of sales: |
| |||
Opening stock | 94,000 |
| ||
Add Purchases | 700,000 |
| ||
794,000 | ||||
Less Closing stock | 106,000 | 688,000 |
| |
Gross profit | 310,000 |
| ||
Add Discount received | 6,000 |
| ||
316,000 | ||||
Less expenses: | ||||
General expense | 15,000 |
| ||
Salaries | 104,000 |
| ||
Discount allowed | 2,000 |
| ||
Directors' fees | 72,000 |
| ||
Increase in provision for bad debts | 4,000 |
| ||
Debenture interest | 10,000 |
| ||
Telephone, stationery and photocopying | 2,000 |
| ||
Rates and insurance fees | 5,000 |
|
| |
Less prepayment | 1,000 | 4,000 |
| |
Audit fees | 1,000 |
| ||
Depreciation: | ||||
Plant an machinery (10%) | 16,000 |
| ||
Motor van (25%) | 6,000 | 22,000 | 236,000 |
|
Net profit before tax | 80,000 | |||
Less Corporation tax | 25,000 |
| ||
Net profit after tax | 55,000 | |||
Less Ordinary dividend | 16,000 |
| ||
Less Ordinary dividend proposed | 20,000 | 36,000 |
| |
Net profit after tax and dividend | 19,000 | |||
Add: Profit and loss b/f from last year | 30,000 |
| ||
Balance of profit c/f this year | 49,000 | |||
Ducati Speed Ltd | ||||
Financial statement as at 30 June 2012 | ||||
Fixed assets: | ||||
Land and building |
| 850,000 |
| |
Plant and machinery at cost | 160,000 |
| ||
Less Depreciation | 52,000 | 108,000 |
| |
Motor Van | 40,000 |
|
| |
Less Depreciation | 22,000 | 18,000 | 976,000 |
|
Current assets: | ||||
Stock | 106,000 | |||
Account receivable | 85,000 |
| ||
Less provision for bad debts | 7,000 | 78,000 | ||
Prepayments |
| 1,000 | ||
Cash | 11,000 | 196,000 | 1,172,000 | |
Less: Non current liabilities | ||||
10% debentures | 100,000 | 100,000 | ||
Less: Current liabilities | ||||
Proposed dividend | 20,000 | |||
Taxation | 25,000 | |||
Creditors | 98,000 | 143,000 | ||
Equity | ||||
Ordinary shares issued |
| 800,000 | ||
Preference shares issued | 80,000 | |||
Retained earnings | 49,000 | 929,000 | 1,172,000 | |
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