| |
Solution 14.6 – Leisure Hotels Ltd
Trading and Profit
and Loss Account for year ended 30 June 2003
|
|
€ |
€ |
€ |
|
Sales |
|
|
590,000 |
|
Less
cost of sales |
|
|
|
|
Opening stock |
|
10,000 |
|
|
Purchases |
|
158,900 |
|
|
Less closing
stock |
|
(8,000) |
|
|
Cost
of sales |
|
|
(160,900) |
|
GROSS
PROFIT |
|
|
429,100 |
|
Add
gains |
|
|
|
|
|
|
|
|
|
Less
Expenses |
|
|
|
|
Directors
remuneration |
|
50,000 |
|
|
Wages |
252,000 |
|
|
|
+ Wages due |
5,000 |
257,000 |
|
|
Motor expenses |
|
15,000 |
|
|
Rates &
insurance |
12,000 |
|
|
|
- Insurance
prepaid |
(3,000) |
9,000 |
|
|
General expenses |
|
20,000 |
|
|
Advertising |
|
32,000 |
|
|
Auditing |
|
10,000 |
|
|
Create provision
bad debts |
|
260 |
|
|
Annual depreciation
- furniture |
|
7,000 |
|
|
Annual depreciation
- equipment |
|
12,000 |
(412,260) |
|
NET
OPERATING PROFIT |
|
|
16,840 |
|
Interest
paid - trial balance |
|
2,100 |
|
|
Interest
due |
|
12,900 |
(15,000) |
|
Net
profit before tax |
|
|
1,840 |
|
Corporation
tax paid |
|
|
|
|
Corporation
tax due |
|
|
(3,500) |
|
Net
profit after interest and tax |
|
|
(1,660) |
|
APPROPRIATIONS |
|
|
|
|
Interim ordinary
dividend |
|
5,000 |
|
|
Proposed final
ordinary dividend |
|
7,500 |
|
|
Preference
dividend provision |
|
4,900 |
(17,400) |
|
Retained
profit current year |
|
|
(19,060) |
|
Retained
profit b/f |
|
|
33,000 |
|
Retained
profit c/f |
|
|
13,940 |
Balance sheet
as at 30 June 2003
|
|
€ |
€ |
€ |
|
Fixed
Assets |
Cost |
Depreciation |
N.B.V |
|
Buildings |
550,000 |
|
550,000 |
|
Furniture |
70,000 |
(32,000) |
38,000 |
|
Equipment |
60,000 |
(32,000) |
28,000 |
|
|
680,000 |
(64,000) |
616,000 |
|
Current
Assets |
|
|
|
|
Stock |
|
8,000 |
|
|
Debtors |
13,000 |
|
|
|
- Provision
bad debts (€13,000 x 2%) |
(260) |
12,740 |
|
|
Bank (-€15,000
– €50,000 + €137,500) |
|
72,500 |
|
|
Prepayment |
|
3,000 |
|
|
|
|
96,240 |
|
|
Current
Liabilities |
|
|
|
|
Creditors |
27,000 |
|
|
|
Accrual wages |
5,000 |
|
|
|
Debenture
interest |
12,900 |
|
|
|
Corporation
tax |
3,500 |
|
|
|
Preference
share dividend |
4,900 |
|
|
|
Ordinary share
dividend |
7,500 |
(60,800) |
35,440 |
|
|
|
|
|
|
Long
Term Liabilities |
|
|
|
|
6% Debentures |
|
|
(200,000) |
|
|
|
|
451,440 |
|
|
|
|
|
|
Capital
and Reserves |
|
|
|
|
Ordinary share
capital (€150,000 + €50,000) |
|
|
200,000 |
|
7% Preference
share capital |
|
|
70,000 |
|
Retained profit |
|
|
13,940 |
|
Share premium
(€50,000 + €87,500) |
|
|
137,500 |
|
General reserve |
|
|
30,000 |
|
|
|
|
451,440 |
|