Question: The summarised Balance sheet as at 30 April 2005 of Clutterbuck Ltd Was as follows
|
|
|
|
$ |
| Fixed Assets |
|
|
2550000 |
| Net current assest |
|
|
950000 |
|
|
|
|
3500000 |
| 6% of debentures 2005/2006 |
|
150000 |
|
|
|
|
3350000 |
|
|
|
|
|
| ordinary shares of $ 1 |
|
2500000 |
| 10 % redeemable preferences share of $1 |
300000 |
| share premium account |
|
200000 |
| Profit and loss account |
|
350 000 |
|
|
|
|
3350000 |
Further information :
1. The market price of the ordinary shares at 30 April 2005 $ 1.60.
2. The dividend yeild on ordinary shares was 2.5 per cent.
3. The creditor for taxation at 30 April 2004 was $ 25 000.Taxation paid in the year ended 30 April 2005 amounted to $ 22 000.The liability for taxation on the profit of the year ended 30 April 2005 is $ 31 000 and is carried forward on the taxation account.
4. The retained profit for the year ended 30 April 2005 was $ 60 000.
5.The debentures were issued in 1997.The preferance shares were issued at par.
Required:
(a) Prepare Clutterbuck Ltd's Profit and Loss account for the year ended 30 April 2005 in as much detail as possible. The profit and loss Account should commence with the operating profit.