Question

ONE PIECE LTD

For the year ended 30 June 2018, Nami, the accountant of One Piece Ltd has closed each of the ledger accounts to arrive at the following balances.
Inventories 180,900
Retained earnings 170,555
Provision for depreciation:
Freehold buildings 20,000
Motor vehicles 28,000
Plant and machinery 22,100
Rental income 12,120
Sales 962,300
Trade receivables 112,870
Purchases 777,200
Trade payables 210,800
Discounts:
Allowed 53,400
Received 27,405
Sundry business expenses:
Wages 73,500
Salaries 74,000
Office 10,000
Directors’ remuneration 30,000
Dividends:
Paid 40,000
Received 20,000
Interest:
Paid 12,500
Received 10,000
Freehold land 70,000
Freehold buildings 160,000
Motor vehicles 124,200
Plant and machinery 74,300
10% debentures
30 June 2019 35,000
30 June 2015 90,000
Share premium account 66,000
25p ordinary shares 200,000
Investments 58,000
Bank (debit) 61,410
New share issue account 38,000

Following a physical count closing inventories were determined to be £210,000 at 30 June 2018.


In addition Nami discovers the following:

(1) The debenture interest is payable in arrears on 30 June until maturity.

(2) One motor vehicle, stated in the accounts at cost of £8,000 with accumulated depreciation of £2,000, was stolen during the year. The insurance company has agreed to pay £7,000 in full settlement. No entries have been made in the books in respect of this matter.

(3) The company depreciates assets using the reducing balance method. The relevant rates are as follows:
Freehold buildings 2%
Plant and machinery 10%
Motor vehicles 25%
Freehold land is not depreciated.

(4) During the year the company issued 40,000 25p ordinary shares at 95 pence each. The proceeds have been credited to the new shares issue account and still need to be properly accounted for.

Requirements:

Prepare a statement of profit or loss for the year ended 30 June 2018 and a statement of financial position as at 30 June 2018
Note: Ignore comparatives and taxation.

Answer 1

Answer:

Answer is 0

Explanation:

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