... LTD TRIAL BALANCE AT 31 DECEMBER 2022
Folio
Dr
Cr
M
M
Ordinary share capital
100, 000
Preference share capital (6% dividends)
100, 000
Share premium
200, 000
Retained profit
105, 000
Loan from bank (15% interest)
80, 000
Debenture loan (12% interest)
100, 000
Land and buildings
510, 000
Machinery
100, 000
Accumulated provision for depreciation - Machinery
40, 000
Inventory
70, 000
Accounts receivable
154, 000
Bank
360, 000
Accounts payable
121, 000
Taxation
54, 000
Sales
1, 860, 000
Cost of sales
930, 000
Administration expenses
72, 000
Marketing expenses
63, 000
Directors salaries
180, 000
Telephone expenses
18, 000
Employees salaries
334, 000
Light and water expenses
25, 000
Depreciation machinery
20, 000
Disposal of fixed assets
210, 000
Preference dividends (paid)
6, 000
Ordinary dividends (paid)
20, 000
.
2, 916, 000
2, 916, 000
Adjusting information:
Lesedi Ltd borrowed M80, 000 from the bank on 2nd July 2022 at an interest rate of 15% pa.
The directors salaries for the year are M200, 000.
Land and buildings which originally cost M150, 000 were sold for M210, 000. The directors wishes to transfer the gain on sale to reserve.
The taxation expense for the year (incurred) is M63, 000.
An ordinary interim dividend of M20, 000 was declared at the end of June 2022 and paid during July 2022. The final or yearend dividend to be paid at end of the year to the directors is M50, 000.
Required:
Prepare Trading, profit and loss account for the period and (12.5 marks)
Balance sheet as at that date after taking account of all the given adjustments