P&L Financial Statement Question

by Sadie Burke
(Ireland)

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

reserves:
General Reserve 40,000

retained Profits P&L A/C 53,000 93,000

Shareholders Funds 460,000

Term Loan 10,000
470,000

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