Retail Pharma Ltd

Date Company % $ Details

Retail Pharma (RP) Ltd was registered on 1 Jan 2020.
Authorised capital was approved to be 410,000
Funds raised
1.1.20 Issued $10 Ordinary share for a sum of 50.0% 100,000
1.1.20 Issued $20 Preference share capital for a sum of 10.0% 41,000
31.12.20 Preference dividend paid at end of year @ / $ 8.0% 3,280
1.1.20 $100 Bond issued for a sum of 8.0% 32,800
Bond interest paid at end of year @ / $ 6.0% 1,968
1.1.20 See transaction below related to NCA 24,600
31.12.20 Loan interest expense is paid 5.0% 1,230
Useful Resale
NCA Acquired life Value Dep exp
1.1.20 Acquired tangible NCA1 for check 12.0% 49,200 5 -
1.1.20 Acquired tangible NCA2 for issue of $10 ordinary share 8.0% 32,800 4 -
1.1.20 Acquired tangible NCA3 via a loan of 6.0% 24,600 3 -
1.1.20 Acquired by check NCA 4 & NCA 5 for a basket or bundle deal 40,000
NCA4 Fair market value on date of acquisition was 50.0% 25,000 4 -
NCA5 Fair market value on date of acquisition was 50.0% 25,000 5 -
Intangible NCA acquired for check 16.0% 65,600 8 -
Inventory
Purchased inventory for check 8.00% 32,800
Purchased inventory on credit 7.00% 28,700
Returned inventory to credit supplier as it was poor quality 0.70% 2,870
Cost of inventory sold during 2020 6.00% 24,600
31.12.20 Loss to be recorded due to inventory write down below cost 0.50% 2,050
Distributed as free sample inventory with a cost of 0.40% 1,640
Donated inventory with a cost of 0.20% 820
Uninsured inventory lost due to fire. 0.10% 410
Sales
Cash sales 30.00% 123,000
Credit sales 25.00% 102,500
Expenses
Check paid for operating expenses for currrent year 8.00% 42,000
Check paid for operating expenses for next year 2.00% 8,000
Unpaid / credit operating expenses for current year 1.50% 11,000
Calculate depreciation exp as per details in NCA
Bad debts expense for the year 1.22% 5,000
31.12.20 Record tax expense at year end to be paid in next year 1.80% 7,380
AR
Collection from AR during the year 60% 61,500
Bad debts suffered during the year 5% 5,125
Cancellation again AP 2,000
Allowed discount to AR for early collection above 1,000
Check advances received from customers (use bank and AR column) 5,000
AP
Payment to AP during the year 60% 17,220
See above set off in AR 2,000
Discount received from AP for early payment 2% 574
Other events
Won cash award in a competition 1,230
Competitor introduced a new product which may reduce sales by 6%
Government policy changed leading to increase in share price of 4%
Operating cost savings in 2020 due to workflow redesign 4,000
Dividend
Calculate Net profit & transfer to Retained Profit Now
1.9.20 Paid interim ordinary dividend in cash 9,900
1.10.20 Paid share dividend to ordinary SH in the ratio of 1 : 10 10%
31.12.20 Final ordinary dividend approved by SH payable in early next year. 12200
Reserves
31.12.20 Transfer to reserves 4% 16,400
31.12.20 Record stock split in the ratio of 2:1

END OF TRANSACTIONS