I am stuck on one of the figures mentioned in answers, really would like to know where this sum of £ 3000 is coming from!?
Statement of reserves Profit and loss Plant replacement Share premium
Balance at the 1st Jan 20x8 90,000 30,000 25000
Profit of the year 105,200
Dividend paid (3,000)
Transfer (20,000) 20,000
172,200 50,000 25,000
I can not workout highlighted figure above.
zz ltd summarised balance sheet at the 31st of December 20x7 showed:
Net Assets 280,000
Called up share capital
-50p ordinary shares 75,000
-£1 8% preferences shares 60,000
Share premium account 25,000
Plant replacement reserve 30,000
profit and loss account 90,000
The operating profit of the year to 31 december 20x8 has been computed as £ 180,000
The following additional information is available
- Corporation tax is estimated at £ 70,000.
- An interim dividend of 2p has been paid on the ordinary shares, and one half of the dividend on the preference shares.
- It is proposed to pay the remaining dividend o the preference shares and final divided of 5p on the ordinary shares.
- £ 20,000 is to be transfered to the plant replacement reserve.
Activity 3 page 52 Advanced bookkeeping.
- construct the profit and loss account for the year
- Show the balance sheet at the end of the year to the extent that the information is available.
Would appreciate your help in working out above highlighted figure.
Kind Regards everyone,
Edited at 11 Jul 2011 06:54 PM GMT