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In: Accounting

The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020...

The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are:

30th June 2020

‘000

30th June 2019

‘000

Sales (all on credit)

300

420

Cost of Goods Sold

156

132

Doubtful Debts expense

30

36

Interest Expense

24

36

Salaries

36

30

Depreciation

12

18

Cash

172.80

166.80

Inventory

216

192

Accounts Receivable

324

300

Allowance for Doubtful Debts

36

42

Land

180

180

Plant

120

108

Accumulated Depreciation

24

36

Bank Overdraft

24

22.80

Accounts Payable

240

228

Accrued Salaries

26.40

21.60

Long term loan

108

84

Share Capital

144

120

Opening Retained Earnings

368.40

224.40

Other information:

Share capital is increased by the bonus issue of 24 000 shares for $1.00 each out of retained earnings. Plant is acquired during the period at a cost of $36 000, while plant with a carrying amount of $nil (cost of $24 000, accumulated depreciation of $24 000) is scrapped.

Required:

a)      Reconstruct the allowance for doubtful debts and accounts receivable.

(6.5 marks)

b)      Reconstruct inventory and accounts payable

c)      Reconstruct accrued salaries

d)      Reconstruct property, plant and equipment and accumulated depreciation

e) present a statement of cash flow for maybe ltd for the year ended 30 June 2020

Solutions

Expert Solution

FIRST FOUR SUB PARTS ONLY ANSWERED

(All amounts in '000)

Ans-(a)

Ans-(b)

Ans-(c)

Ans-(d)

ekkarill92 answered 1 year ago
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