Don't give answer in image format 1.a) Recycled Plastics Ltd is a company with the following capital structure:Authorisedshare capitalPOrdinary shares of P1100 0005% Preference shares of P1100 000There were no changes to the number of shares in issue during the year.The retained earnings brought forward on 1 May 2014 were P8000.During the year ended 30 April 2015, the company made a profit of P40 000.On 30 April 2015 it was agreed to effect:1. Transfer P20 000 to the general reserveIssuedshare capitalP50 00080 0002. Payment of preference share dividend.3. Payment of final dividend of P0.05 per share on the ordinary shares.An interim dividend of P0.02 per share had been paid to the ordinary shareholders on31 December 2014.Required: Prepare the profit and loss appropriation account for the year ended 30 April 2015.

Profit and loss appropriation is prepared after preparation of Profit and Loss account to show how…

1.a) Recycled Plastics Ltd is a company with the following capital structure: Authorised share capital P Ordinary shares of P1 100 000 5% Preference shares of P1 100 000 There were no changes to the number of shares in issue during the year. The retained earnings brought forward on 1 May 2014 were P8000. During the year ended 30 April 2015, the company made a profit of P40 000. Issued share capital P 50 000 80 000 On 30 April 2015 it was agreed to effect: 1. Transfer P20 000 to the general reserve 2. Payment of preference share dividend 3. Payment of final dividend of P0.05 per share on the ordinary shares. An interim dividend of P0.02 per share had been paid to the ordinary shareholders on 31 December 2014. Required: Prepare the profit and loss appropriation account for the year ended 30 April 2015.

1.a) Recycled Plastics Ltd is a company with the following capital structure: Authorised share capital P Ordinary shares of P1 100 000 5% Preference shares of P1 100 000 There were no changes to the number of shares in issue during the year. The retained earnings brought forward on 1 May 2014 were P8000. During the year ended 30 April 2015, the company made a profit of P40 000. Issued share capital P 50 000 80 000 On 30 April 2015 it was agreed to effect: 1. Transfer P20 000 to the general reserve 2. Payment of preference share dividend 3. Payment of final dividend of P0.05 per share on the ordinary shares. An interim dividend of P0.02 per share had been paid to the ordinary shareholders on 31 December 2014. Required: Prepare the profit and loss appropriation account for the year ended 30 April 2015.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Thulani Ltd has an authorised share capital of 600 000 ordinary shares. Their financial year ends on the last day of February of each year. The following pre-adjustment trial balance appeared in the books of Thulani Ltd on 28 February 2017Pre- adjustment trial balance of Thulani Ltd on 28 February 2017 DETAILS FOL DEBIT(R) CREDIT(R)Balance Sheet SectionOrdinary share capital B1 877 500.00Retained earnings B3 64 530.00Land and buildings B4 720 000.00Vehicles B5 279 000.00Accumulated depreciation: Vehicle B6 38 700.00Trading inventory B7 106 200.00Debtors control B8 82 000.00Allowance for credit losses B9 2 790.00Bank B10 285 200SA Revenue Service ( income tax) B11 165 690Creditors control B12 73 800.00Mortgage loan B13 112 500.00Nominal Account SectionSales N1 1 636 654.50Cost of sales N2 1 043 100.00Credit losses N3 5 674.50Settlement discount received N4 3 915.00Settlement discount granted N5 4 185.00Rent income N6 108 000.00Stationary N7 3 105.00Credit losses recovered N8 1…
The equity section of East Ltd's on 1 April 2015 was extracted as follows: Ordinary shares $ 10,000 Revaluation Reserves Retained Loss 5,000 (260) On 1 April 2015, HK Ltd purchased 25% of the ordinary shares of East Ltd at the cost of $4,080. In January 2016, HK Ltd transferred one of its senior staff to take up the position of the Managing Director of East Ltd. After this personnel appointment, HK Ltd has been substantially involved in new product innovation with East Ltd by the provision of technical information. In February 2016, East Ltd sold inventory to HK Ltd for $3,000 at a profit of $600 to East Ltd. One third of this inventory remained in HK Ltd's warehouse at the year-end. On 31 March 2016, East Ltd's ending inventory included goods purchased from HK Ltd at a loss of $80 to HK Ltd. These goods had good quality, so they were popular and fully sold out shortly in April. In March 2016, East Ltd paid dividends of $400 to all eligible ordinary shareholders out of the profit…
6. On 30 June 2017, two-third of the shares of SIC Ltd. (with a total capital of $ 4.800.000) was acquired by HOR Ltd. the Balance Sheet of SIC Ltd. showed a debit balance of $ 2.400.000 on 1st January 2017 and a credit balance of $ 1.440.000 on 31 December 2017. The investment by HOR Ltd. in shares of SIC Ltd. Is $ 3.600.000. Calculate the cost of control or capital reserve. (a) 720000 (b) 620000 (c) 360000 (d) 180000 7. Cash payments to and on behalf of employees is an example of: (a) Cash flow from Operating activities (b) Cash flow from Investing activities (c) Cash flow from Financing activities (d) None of the above 8.Financial Reporting Council is an organisation of which country? (a) The USA (b) The UK (c) Australia (d) Canada
At 31 March 2012, Dalian Limited had in issue NS4m in equity share capital of 50 cent each, and N$1m in 6% noncumulative, non-redeemable preference shares of NS1 each On 1 January 2013, the company made a 1 for 2 rights issue at full market value. The profit for the year ended 31 March 2013 was N$3m. Preference dividends were paid in full. There were no other changes to the issued share capital Calculate the basic earnings per share for year ended 31 March 2013 in accordance with IAS 33 Earnings Per Share a 33 3 cent Ob 25 cent Oc 50 cent Od 327 cent
The following is an incomplete statement of financial position of Bruno Limited as at 31 December 2023: Bruno Limited. Statement of financial position as at 31 December 2023: ASSETS Non-current assets Property, plant and equipment Current assets Inventory Trade receivables Total assets Capital and reserves Share capital and reserves Issued share capital Accumulated profit Non-current liabilities Interest -bearing debt Current liabilities Trade and other payables Total equity and liabilities 2023 R Non-current assets. Equity Non-current liabilities: Equity 288 000 244 000 40 000 980 000 2023 2022 R 48 000 231 000 100 000 80 000 Additional information: Selected financial ratios calculated from the above financial statements are as follows: 2022 612 000 1.85:1 1.8.1
An entity began operations January 1, 2015 and reported the following net income or loss for five years of operations: 2015 1,500,000 loss 2016 1,300,000 loss 2017 1,200,000 loss 2018 4,500,000 income 2019 9,000,000 income On December 31, 2019, the capital accounts were: Preference share capital, P100 par, 12% participating and cumulative, 100,000 shares 10,000,000 Preference share capital P100 par, 10% nonparticipating, Noncumulative, 50,000 shares 5,000,000 Ordinary share capital, P10 par, 1,000,000 shares 10,000,000 The entity has never paid cash or share dividend. The capital accounts have not changed since the entity began operations. If the maximum amount available for cash dividends is declared on December 31, 2019, what amount of dividend is payable to 12% Preference Shareholders? 10% Preference Shareholders?
Style Ltd is a company with an authorised share capital of 2 million ordinary shares. The company commenced business on 1 July 2008 primarily retailing fabric. The following list of balances as at 30 June 2020 was extracted from the pre-adjustment trial balance of Style Ltd. Additional Information:1) Physical stock was taken at financial year end and valued as follows:Trading inventory…………….R366 690Consumables inventory……..R 2 040 2) Generous Bank provided the following details as at 30 June 2020 in respect of the loan they provided to Style Ltd:Balance outstanding at 1 July 2019 R227 500Balance outstanding at 30 June 2020 R183 750Total payments for the year inclusive of interest R 79 625Interest on the loan is capitalised. Style Ltd has not yet recorded the interest for the current financial year.3) On 25 June 2020, directors of Mine Ltd declared a dividend of 15 cents per share payable to all shareholders registered on 30 June 2020. Style Ltd bought its shares in Mine Ltd during the…
31. During 2013, G Company purchased 80,000 shares for P60 per share. The investment was classified as trading investment. During the year, the entity sold 20,000 shares for P70 per share. On December 31, 2013, the market price per share is P56. What net amount of gain or loss should be for 2013? a. 320,000 loss b. 200,000 gain c. 240,000 loss d. 40,000 loss
Style Ltd is a company with an authorised share capital of 2 million ordinary shares. The company commenced business on 1 July 2008 primarily retailing fabric. The following list of balances as at 30 June 2020 was extracted from the pre-adjustment trial balance of Style Ltd. Additional Information:1) Physical stock was taken at financial year end and valued as follows:Trading inventory…………….R366 690Consumables inventory……..R 2 0402) Generous Bank provided the following details as at 30 June 2020 in respect of the loan they provided to Style Ltd:Balance outstanding at 1 July 2019 R227 500Balance outstanding at 30 June 2020 R183 750Total payments for the year inclusive of interest R 79 625 Interest on the loan is capitalised. Style Ltd has not yet recorded the interest for the current financial year.3) On 25 June 2020, directors of Mine Ltd declared a dividend of 15 cents per share payable to all shareholders registered on 30 June 2020. Style Ltd bought its shares in Mine Ltd during…
a) Rich is a limited liability company with 200,000 25c shares in issue. At 1 January 2016 the balance on the share premium account is $75,000. The following transactions occur in the year ended 31 December 2016. 31 January: There is a fully accepted 2 for 5 rights issue. The issue price is $1.80. 12 August: There is a 1 for 10 bonus issue made using the share premium account. What are the balances on the share capital and share premium accounts as at 31 December 2016? b) The balance on retained earnings as at 31 December 2016 is $50,000. The directors of the company would like to pay a dividend to shareholders of 10c per share. Is this possible? Explain why.
Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginning of the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018 Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made a one-for-five bonus issue of ordinary shares out of retained earnings. The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Compaq Ltd also had 500 000, $1.00, 5% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2017 was $1.50 per share.Calculate the basic EPS amount for 2018.
Question 2 For the year ended 30 June 2020, Murray Ltd had a net profit after tax of $3,300,000. Details of the shares and other financial instruments outstanding are as follows: On 1 July 2019 Murray Ltd had 600,000 fully paid ordinary shares. • 300,000 fully paid ordinary shares were issued on 1 November 2019 at the prevailing market price. • 75,000 fully paid ordinary shares were bought back on 1 May 2020 at the prevailing market price. • 210,000 partly paid ordinary shares were issued on 1 May 2020 at a price of $6.00. The shares were partly paid to $4.50 and carried the right to participate in dividends in proportion to the amount paid as a fraction of the issue price. • For the entire year, 3 million $3.00 preference shares were held which provided a dividend at a rate of 5% per annum. • The preference shares are convertible at a rate of 1 ordinary share for every 4 preference shares. There are options to purchase 60,000 ordinary shares at a price of $15. For the year ended 30…