ALMUNTAZIR ISLAMIC SEMINARY

COMPANY ACCOUNTS QUESTIONS

1. The financial year of LS Limited ends on 30 June. The income statement for the year
ended 30 June 20–3 showed a profit for the year of $7 300 after debenture interest.
The following balances was on 1 July 20–2:
$
Ordinary share capital 100000
General reserve 15000
Retained earnings 8900
The following transaction occurred during the year ended 30 June 20–3
Issue of ordinary shares 20000 shares of $1 each 20000
Ordinary share dividend for year ended 30 June 20–3 paid 5000
Transfer to general reserve 3000
The following additional information is provided on 30 June 20–3:
$
Land and building at cost 98 000
Fixtures and equipment at cost 50 000
Motor vehicles at cost 36 000
Trade payables 8 450
Trade receivables 16 800
Other payables 870
Other receivables 650
Inventory 15 680
Provision for doubtful debts 420
Provision for depreciation of fixtures and equipment 13 550
Provision for depreciation of motor vehicles 22 500
5% debentures (repayable in 10 years) 20 000
Bank overdraft 5 140
Required:
a) Prepare statement of changes in equity
b) Prepare statement of financial position as at 30 June 20-3

1
2. AK Limited provided the following information:
$
On 1 May 20–4:
Ordinary share capital 400 000
General reserve 20 000
Retained earnings 51 500
On 1 August 20–4 the final ordinary share for the year ended 30 April 20–4
was paid 16 000
On 1 November 20–4 an interim ordinary share dividend for the year ended 30 April
20–5 was paid 10 000
Profit for the year ended 30 April 20–5 79 500
On 30 April 20–5 the directors decided to:
• Transfer 17 500 to general reserve
• Proposed a final ordinary share dividend of 3%.
Additional information at 30 April 20–5:
$
Premises at cost 425 000
Equipment at cost 124 000
Motor vehicles at cost 80 000
Provision for depreciation of equipment 93 000
Provision for depreciation of motor vehicles 25 000
Trade payables 38 700
Trade receivables 32 000
Other payables 770
Other receivables 1 520
Provision for doubtful debts 800
5% debentures 30 000
Balance at bank 15 000
Inventory 35 750
a) Prepare the statement of changes in equity for the year ended 30 April 20–5.
b) Prepare the statement of financial position at 30 April 20–5.