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.
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
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
Ordinary Share Dividend 40,000
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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