ASSEMBLE the following information extracted from the accounts of a company into
ID: 2406888 • Letter: A
Question
ASSEMBLE the following information extracted from the accounts of a company into a statement of financial position (balance sheet) for 30h June 2016. From the information it has already been determined that the company made a profit of S100,000 for the year to 30h June 2016 STATE and DISCUSS any assumptions that you have had to make 2,000,000 100,000 850,000 120,000 55,000 100,000 60,000 70,000 40,000 Annual sales Accounts receivable (debtors) @30 June, 2016 Annual direct labour costs Raw material stocks 30 June, 2015 Work in process stocks 30 June, 2015 Raw material stocks @ 30 June, 2016 Work in process stocks 30 June, 2016 Annual administration cost Profit and Loss appropriation prior to 30 June, 2015 (past profits still in company) Raw materials purchased 1 July, 2015-30 June, 2016 Annual depreciation Short term loans by the company to others for the year ending 30 June 2016 Annual factory overheads before adding depreciation Bank overdraft Investment in other companies @ 30 June, 2016 Depreciated value of plant 30 June, 2015 Depreciated value of buildings 30 June, 2015 Depreciated value of vehicles a 30 June, 2015 Long term loans to this compa Cash paid for purchase of plant during the year to 30 June, 2016 Creditors @ 30 June, 2016 Original company formation expense Long term loans to this company during the year to 30 June, 2016 Fully paid up shares a 30 June, 2016 Share premiums paid pre 30 June, 2015 Cash at the bank @30 June, 2016 Dividends paid during the year to 30 June, 2016 from past profits 800,000 25,000 25,000 140,000 65,000 50,000 200,000 250,000 25,000 250,000 75,000 ny @ 30 June, 2015 110,000 10,000 25,000 295,000 65,000 30,000 50,000Explanation / Answer
Statement of Financial Position as on 30th June 2016
(Amount in $)
LIABILITIES ASSETS
Bank Overdraft 65,000 Accounts Receivable 100,000
Creditors 110,000 Raw Materials Stock 100,000
LongTerm Loans 250,000 Work-in-Process Stocks 60,000
Addl Long Term Loan 25,000
Share Capital 295,000 Short Term Loans 25,000
Share Premium 65,000 Investments 50,000
P&L Appropriation A/c: Company formation expense 10,000
Opening Balance 40,000 Cash at Bank 30,000
Profit for the year 100,000 Plant 200,000
Less: Dividend Paid 50,000 Add: Additions 75,000
----------- 90,000 Buildings 250,000
Vehicles 25,000
-------------
550,000
Less:Depreciation 25000
-------------- 525,000
------------- ---------------
900,000 900,000
--------------- ---------------
Assumptions:
1.The Original Company formation expense is assumed to be the balance as on 30/6/2016 after writing off
a certain portion of the same for the year.
2.Cash paid for purchase of plant has been taken as Additions assuming it as installed during the year
instead of reckoning it as an Advance Paid.
3. It is assumed that the Dividend has been paid out of Past profits and the Current year profits earned during the year ended 30th June 2016.