The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020...
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Accounting
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30June 2020 are:
30th JUNE 2020
‘000
30th JUNE 2019
‘000
Sales (all on credit)
300
420
Cost of Goods Sold
156
132
Doubtful Debts expense
30
36
Interest Expense
24
36
Salaries
36
30
Depreciation
12
18
Cash
172.80
166.80
Inventory
216
192
Accounts Receivable
324
300
Allowance for Doubtful Debts
36
42
Land
180
180
Plant
120
108
Accumulated Depreciation
24
36
Bank Overdraft
24
22.80
Accounts Payable
240
228
Accrued Salaries
26.40
21.60
Long term loan
108
84
Share Capital
144
120
Opening Retained Earnings
368.40
224.40
Other information:
Share capital is increased by the bonus issue of 24 000 sharesfor $1.00 each out of retained earnings. Plant is acquired duringthe period at a cost of $36 000, while plant with a carrying amountof $nil (cost of $24 000, accumulated depreciation of $24 000) isscrapped.
Required:
a) Reconstructthe allowance for doubtful debts and accounts receivable.
b) Reconstructinventory and accounts payable
c) Reconstructaccrued salaries
d) Reconstructproperty, plant and equipment and accumulated depreciation
e) Present a statement of cash flow for MaybeLtd for the year ended 30 june 2020
PLEASE DO NOT COPY OTHERS ANSWERS
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30June 2020 are:
30th JUNE 2020 ‘000 | 30th JUNE 2019 ‘000 | |
Sales (all on credit) | 300 | 420 |
Cost of Goods Sold | 156 | 132 |
Doubtful Debts expense | 30 | 36 |
Interest Expense | 24 | 36 |
Salaries | 36 | 30 |
Depreciation | 12 | 18 |
Cash | 172.80 | 166.80 |
Inventory | 216 | 192 |
Accounts Receivable | 324 | 300 |
Allowance for Doubtful Debts | 36 | 42 |
Land | 180 | 180 |
Plant | 120 | 108 |
Accumulated Depreciation | 24 | 36 |
Bank Overdraft | 24 | 22.80 |
Accounts Payable | 240 | 228 |
Accrued Salaries | 26.40 | 21.60 |
Long term loan | 108 | 84 |
Share Capital | 144 | 120 |
Opening Retained Earnings | 368.40 | 224.40 |
Other information:
Share capital is increased by the bonus issue of 24 000 sharesfor $1.00 each out of retained earnings. Plant is acquired duringthe period at a cost of $36 000, while plant with a carrying amountof $nil (cost of $24 000, accumulated depreciation of $24 000) isscrapped.
Required:
a) Reconstructthe allowance for doubtful debts and accounts receivable.
b) Reconstructinventory and accounts payable
c) Reconstructaccrued salaries
d) Reconstructproperty, plant and equipment and accumulated depreciation
e) Present a statement of cash flow for MaybeLtd for the year ended 30 june 2020
PLEASE DO NOT COPY OTHERS ANSWERS
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