Financial Statement Question

by Sadie Burke

from the following information prepare:

1 Profit and Loss Appropriation A/C for year ended 31.12.2005
2 Balance Sheet extract as at 31.12.2005 showing Shareholders funds and Capital Employed.

Trial Balance as at 31.12.2005
issued ordinary Share Cap €1 each 500,000
P & L (credit) Balance 1.1.2005 40,000
General Reserve 25,000
Term Loan 10,000

Note; A Ordinary Share Dividend 8% Declared(proposed) by directors
B Transfer to General Reserve 15,000
C Net Profit for year 68,000

A Calculate Return on Shreholders Funds.
B Return on Capital Employed.

P & L Appropriation A/C year ended 31.12.2005
ordinary Div 8% 40,000 Bal B/D 40,000
General Reserve 15,000
Balance C/D 53,000 Net profit 68,000
108,000 108,000
Bal B/D 53,000

General Reserve A/C
Bal B/D 25,000
P&L Appropriation A/C 15,000
Bal C/D 40,000 Bal B/D 40,000
Bal B/D 40,000

Balance Sheet year ended 31.12.2005
Current Liabilities
Ordinary Share Dividend 40,000

financed by:
Share Capital 367,000
General Reserve 40,000
retained Profits P&L A/C 53,000 93,000
Shareholders Funds 460,000
Term Loan 10,000

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