Tadeon

question

working

note 1
loan note issued at yr start

dr int expense 2750

cr cash 1000
cr loan 1750

note 2
total rental lease 6200
op lease 1200
fin lease 5000

paid immediately dr loan

cr cash

l.a.s
date rental finance charge
1 oct x5
1 oct x6 6000 1500

note (iii)
nbv of leasehold property 180000
mv 200000
upward revalution 20000

dr lease hold property

cr rev reserve/oci
note(iv)
tax account
current yr tax provision 38000
less dec in deffered tax 1200
36800

note(v)
 div paid dr r.e
cr cash

net receipt
price of the share 0.32
par value 0.2
premium value 0.12

shares(right issue) 250000

dr bank 80000
cr s.prem 30000
cr s.cap 50000

expenses charged
dr s.prem
cr cash

new entry
dr bank
cr s.prem
cr s.cap

suspense acc
o/b
s.cap 50000
s.prem 28000

c/d 0

Harrington

SPL for the yr ended 31 mar x5

Sales $ 13,400.00
Cos $ 8,910.00
G.P $ 4,490.00
Investment gain $ 120.00
Op expenses $ 2,400.00
Loan note interest $ 50.00
Profit before tax $ 2,160.00
Income tax expense $ 385.00
Profit for the year $ 1,775.00

OCI
rev gain $ 1,800.00
Total comprehensive income $ 3,575.00
 Harrington SOCIE for the y/e 31 mar x5

osc premium
opening balance 1600 40
right issue 400 560
bonus issue 0 0
Ord dividend paid
total comprehensive income
transfer

Harrington sofp as at 31 mar x5

NCA
Land and building 5760
remaining plant 1350
warehouse 950
investment 1320
9380
Current asset
inventory 1750
receivable 2450
bank 350
4550
Total asset 13930

Equities and liabilities

osc 200
premium 600
rev reserve 1720
r.e 4345

Non current liabilities

10% loan notes 500
deff tax 350

Current liabilties
trade payable 4130
current tax 260
accrued tax 25
12130
 entry made reqd

dr int 1000 dr interest 1750

cr cash 1000 cr loan 1750

spl dr rent exp 1200

cr cash 1200

5000
5000

dec in obligation bal. obligation

15000
4500 10500
(c.l) (n.c.l)

20000
20000

d.tax account
ob 12000

spl 1200 rev reserve 4000

c/d 14800
 30000
30000

2000
2000

78000
28000
50000

48000

working

cos 9200
dep on rem plant 450
gain on disposal 30
dep of the warehouse 50
correcting of the warehouse expense -1000
dep of the building 240
total 8910
Rev reserve Retained earning Total
2990 4630
960
0
-500 -500
$ 1,800.00 $ 1,775.00 3575
-80 80 0
8665