P&L Financial Statement Question

by Sadie Burke

P&L Financial Statement

P&L Financial Statement

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.

3) Trial Balance as at 31.12.2005, issued ordinary Share Cap €1 each 500,000

4) P & L (credit) Balance 1.1.2005, 40,000

5) General Reserve 25,000

6) Term Loan 10,000

7) Note;

A) Ordinary Share Dividend 8% Declared(proposed) by directors
B) Transfer to General Reserve 15,000
C) Net Profit for year 68,000
D) Calculate Return on Shreholders Funds.
E) 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, 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 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

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Profit and Loss Statement Questions.

Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you every month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.

Like Bookkeeping-Basics.net?