Problem: After completion of the Trading, Profit and loss Appropriation Account for the year ended 31 May 2005, the following balances were extracted from the books of James Defirst Ltd.
|
|
|
|
$ |
| Motor vehicles at cost |
|
60 000 |
| Equipment at cost |
|
|
30 000 |
| Goodwill |
|
|
|
15 000 |
| Stock |
|
|
|
45 750 |
| Debtors |
|
|
|
78 000 |
| Bank |
|
|
|
13125 (Dr) |
| General reserve |
|
|
15 000 |
| Creditors |
|
|
|
30 075 |
| Retained profit |
|
|
? |
Additional information:
1. Authorised share capital of the company is 100 000 ordinary shares of $ 1 each,of which 75 000 were issued and fully paid at $ 1.15 per share.
2. All fixed assests were bought on 1 June 2002,the date the company was incorporated.
Depreciation is applied as follows.
(I ) Motor vehicles-- 40 % reducing balance.
(II) Equipment-- 20 % straight line,after taking into account a 10 % residual balance.
3. A dividend of $ 0.12 per share has been proposed for the year ended 31 May 2005.
4. A provision for doubtful debts of 5% of debtors at 31 May 2005 is to be created.
5. Stock costing $ 2500 had been sent to a customer on a sale or return basis on 25 May 2005.It had been neither returned nor sold by the year end and no entries regarding it had been made in the accounts.
Required:
1) James De first Ltd's balance sheet as at 31 May 2005 in vertical format.