You are presented with the following trial balance of Carl Ltd at 31 October 2018. Dr Cr R,000 Building at cost Buildings, accumulated depreciation, 1 November 2018 Plant at cost Plant, accumulated depreciation, 1 November 2018 Land at cost Bank balance Revenue Purchases Discounts received Returns inwards Wages Energy expenses Trade Payables Trade Receivables Inventory at 1 November 2018 Allowance for debtors at 1 November 2018 Administrative expenses Director's remuneration Accumulated profit at 1 November 2018 10% Debenture Dividend paid R1 Ordinary shares Share premium account R,000 740 60 220 110 235 50 1,800 1,105 90 35 180 105 250 320 160 10 80 70 30 650 3,280 80 3,280 130 50 Additional information as at 31 October 2019. a. Closing inventory has been counted and is valued at R75,000 b. An invoice of R15 000 for energy expenses for October 2019 has not been received. c. The allowance for debtors is to be increased to 5% of trade receivable. d. Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses. e. Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales f. Tax has been calculated as R45 000 for the year. g. The current share price of Carl Ltd is R1.30 per share h. Debenture interest has not been paid for the year. The items listed below should be apportioned as indicated Cost of Sales Discounts received Energy expenses Wages Director's remuneration - 40% 40% - Administrative Distribution Costs Expenses - 100% 20% 40% 25% 35% - 100% Required 1. Prepare the income statement for the year ended 31 October 2019 2. The statement of financial position as at 31 October 2019
You are presented with the following
Cr R,000
Building at cost
Buildings, accumulated depreciation, 1 November 2018 Plant at cost
Plant, accumulated depreciation, 1 November 2018 Land at cost
Bank balance
Revenue
Purchases
Discounts received
Returns inwards
Wages
Energy expenses
Trade Payables
Trade Receivables
Inventory at 1 November 2018
Allowance for debtors at 1 November 2018 Administrative expenses
Director's remuneration
10% Debenture
Dividend paid
R1 Ordinary shares
Share premium account
R,000 740
60 220
110 235
50 1,800
1,105
90
35 180 105
250 320
160
10
80 70
30
650
3,280
80 3,280
130 50
Additional information as at 31 October 2019.
a. Closing inventory has been counted and is valued at R75,000
b. An invoice of R15 000 for energy expenses for October 2019 has not been received.
c. The allowance for debtors is to be increased to 5% of trade receivable.
d. Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of
sales, 30% to distribution costs and 40% to administrative expenses.
e. Plant is depreciated at 20% per annum using the
charge is to be allocated to cost of sales
f. Tax has been calculated as R45 000 for the year.
g. The current share price of Carl Ltd is R1.30 per share
h. Debenture interest has not been paid for the year.
The items listed below should be apportioned as indicated Cost of Sales
Discounts received Energy expenses Wages
Director's remuneration
- 40% 40%
-
Administrative Distribution Costs Expenses
- 100% 20% 40% 25% 35%
- 100%
Required
1. Prepare the income statement for the year ended 31 October 2019
2. The
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