Week 12 Unit 10 Additional Tutorial Question

  • June 27, 2021

Week 12 Unit 10 Additional Tutorial Question Question 1 Consider the following data being taken out of the trial balance of GPA Ltd. as at 31 March 2017: Dr Cr Ordinary shares of $5 each520,000 Preference shares of $1 each10,000 8% debentures84,000 General reserve89,700 Retained profits145,623 Motor vehicles at cost175,000 Machinery at cost196,000 Accumulated depreciation-vehicles109,500 Accumulated depreciation-machinery127,800 Stock at 31 March 201694,403 Debtors225,640 Creditors91,661 Cash at bank566,662 Purchases222,820 Sales630,260 Wages &salaries73,740 General expenses84,608 Directors’remuneration30,364 Rent and rates100,807 Debenture interest2,880 Interim dividend paid-Ordinary shares9,400 Interim dividend paid-10% Preference shares500 Insurance25,720 Total1,808,5441,808,544 The following additional information relating to GPA Ltd. is also available: 1. Stock at 31 March 2017 was valued at S59,200 2. Machinery costing $43,600, which $28, 280 depreciation had been provided, was sold for $21, 560 during the year. This transaction has not been recorded because the proceeds of sale has not yet received at year end. 3. There was no purchase of fixed assets during the year. Depreciation on motor vehicles and machiner are provided on straight-line basis on cost at the rate of 10% p.a. and 5% p.a. respectively 4. Accrued Rates amount of $5, 680 and prepaid insurance $9,800 were in the year. 5. The estimated tax expenses for the year amounting to $6, 540 6. The directors have decided to increase the general reserve up to $90,000 in total. REQUIRED: Prepare Statement of profit or loss and other comprehensive income for the year ended 31 March 2017,a Statement of changes in equity and a Statement of financial position as at that date.