Q1 The following trial balance was extracted from the books of the By-Air and Cadres PLC on 16th August, 2016 Opening stocks…
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Q1 The following trial balance was extracted from the books of the By-Air and Cadres PLC on 16th August, 2016.
Note of information not taken into the trial balance data:
(a) Provide for:
(i) An audit fee of K58.
(ii) Income tax of K462.
(iii) Administrative expenses were prepaid by K52.
a) Profit and loss account
b) Balance sheet
(c) Manufacturing account
(d) a Cash Flow statement from the above information.
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Technifi Expert’s Answer:
(a) Profit and Loss Account of By Air and Cadres PLC
|Carrying outward||125||By Gross profit||3807|
|Salesman Salaries||800||By Net loss||95|
|Tax. (750 + 162 outstanding)||912|
|Admin Exp. (286 – 52 prepaid)||234|
|Audit Fees outstanding||58|
(b) Balance Sheet
|Capital (13500 – 95 loss)||13405||Vehicles||375|
|Retained Earnings||875||Rent receivables||100|
|Issued share capital ordinary||3125||Land||12500|
|Issued share capital preference||625||Plant||1562|
|Trade Payables||738||Motor vehicles||1125|
|Share premium||350||Trade Receivables||3875|
|Income tax outstanding||462||Cash||1750|
|Audit fee outstanding||58||Prepaid admin ecp||52|
|Purchase of treasury bill||1255||Inventory||825|
|Purchase of debenture loan||1271|
(c & d) Manufacturing account & a Cash Flow statement from the above information
In order to avoid unnecessary calculation the trading and manufacturing account are presented in a combined statement made
|Opening Stock of Raw material||900||Return outward of raw material||250|
|Opening Stock of WIP||750||Inventory||825|
|Purchase of Raw material||110||Sales (12050 – 313 return outward)||11737|
|Opening Stock of finished goods||978|
|Purchase (6263 – 350 return inward)||5913|
|Carriage Inward RM||79|
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