All of these 3 SECTIONB Answer both questions N11123E1 Total

All of these

3 SECTIONB Answer both questions N11123-E1 Total marks available 21. Geoffrey Ltd. closes its Total 40 marks accounts on 31 December each year. Below are the account ofrey Ltd on 31 December 2015 and 31 December 2016 31 December 2016 31 December 2015 Land Building (cost) Accumulated depreciation building Plant and machinery (cost) 114,000 Accumulated depreciation plant Inventory Accounts receivables 55,000 220,000 Bank Accounts payable 112,600 Accrued expenses Wages and salaries Other administrative expenses Tax payable Retained profits Asset revaluation reserve Share premium Preference shares Ordinary shares 63,650 20,000 20,000 100,000 220,000 100,000 Additional information: Statement of Profit or Loss for the year ended 31 December 2016 was as follows: 500,000 (300000) 200,000 Cost of sales Gross profit Wages and salaries Other administrative & selling expenses Directors\' remuneration Depreciation plant Depreciation building Loss on sales of plant Profit before tax 55,000 60,600 27,000 (159,600) 40,400 (10,000) 30,400 5,000 Turn Over 1123-E1

Solution

21 Geoffrey Ltd Statement of cash flows for the year ended 12/31/2016 Working Capital as at 12/31/2016 12/31/2015 Inventory 55000 83000 Accounts Receivable 220000 125000 Statement of Profit and Loss for the year ended 12/31/2016 Bank 60250 28000 Sales 500000 Cost of Sales -300000 Total 335250 236000 Gross Profit 200000 Accounts Payable 112600 118000 Accrued Expenses: Expenses: Wages and Salaries 1000 2000 Wages and Salaries 55000 Other Administrative Expenses 18000 10000 Other Admin and Selling Exp 60600 Tax Payable 3000 1000 Directors\' Remuneration 27000 142600 Total 134600 131000 Profit before tax and depreciation etc. 57400 Net Working Capital 200650 105000 Tax 10000 Increase in Net Working Capital 95650 Profit after tax excluding non-cash items 47400 Net cash inflow during the year 36124 Dividends: Non-cash items There is a difference between the Ordinary 11000 Depreciation Plant 8000 Net cash inflow during the year Preference 9750 20750 Depreciation Building 4000 and the net increase in working Cash from operations 26650 Loss on sale of plant 5000 capital 59526 69000 Sale of plant and machinery: Book value 14474 114000 64000 22 Loss on sale 5000 33000 Howard Cash received 9474 9474 If cost is 114000 Statement of Profit or Loss for the year ended 31 Dec 2016 Cash received during the year 36124 Book Value is 50000 Revenue 27505 If cost is 33000 Opening stock 800 Purchases 19254 Closing Stock 950000 Cost of sales -929946 Book Value is 14474 Selling and administrative exp 2458 Provision for doubtful debts 150 add Bankrupt customer 8000 8150 Administrative exp 3283 There is something wrong The cost of sales cannot be negative