Question

In: Accounting

The following trial balance has been extracted from the books and records of Carpets R Us...

The following trial balance has been extracted from the books and records of Carpets R Us Limited, a registered company, on the 30th September 2019:

£

£

Premises at cost

300,000

Motor Vehicles at cost

25,000

Trade Receivables/Payables

72,000

24,320

Accumulated Depreciation on motor vehicles b/f

9,000

Inventory at 1st October 2018

52,500

Cash at bank and in hand

60,875

Debenture Interest paid

2,250

Retained profit b/f

55,250

Purchases

545,325

General expenses

20,450

Revenue

865,400

Issued ordinary shares @ £0.50 each

150,000

6% Debenture 2025

75,000

Rent and insurance

22,000

Wages and salaries

61,255

Vehicle expenses

8,765

Fixtures and Fittings at cost

14,250

Accumulated depreciation on fixtures and fittings

5,700

TOTAL

1,184,670

1,184,670

Additional information is:-

  • Inventory at 30th September 2019 was valued at £54,200.

  • Depreciation is to be provided on a 20% reducing balance basis for the year for motor vehicles and 10% straight line basis for fixtures and fittings.
  • Rent & insurance contains an invoice for £1,200 for the quarter ending 31st November 2019.

  • Provision is to be made for an audit fee of £2,500 and a director’s fee of £18,250. These amounts were calculated after the year end but related to this year.
  • The directors have identified one customer who owes them £1,500 who has been declared bankrupt; the company is unlikely to receive any money.
  • Corporation tax is charged at £44,887.
  • The directors propose an ordinary dividend of 10 pence per ordinary share to include the interim dividend paid.

Required:

Using international accounting standards (IAS) produce the following financial statements: (A cash Flow Statement is not required)

  1. The statement of profit or loss for the year ended 30th September 2019.

[6 marks]

  1. The statement of changes in equity for the year ended 30th September 2019.

[6 marks]

  1. The statement of financial position as at that date.

[13 marks]

  1. All your workings as notes to the accounts.

[25 marks]

Solutions

Expert Solution

ANSWER TO QUESTION (A)

ANSWER TO QUESTION NO (B)

ANSWER TO QUESTION NO : (C)

ANSWER TO QUESTION (D)

WORKING NOTES

PLEASE COMMENT IF ANY FURTHER WORKING NOTES ARE REQUIRED

ALL THE IMPORTANT WORKING NOTES ARE GIVEN IN ANSWER

ekkarill92 answered 1 year ago
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