The trial balance of Zach Ltd. as at 31 December 1999 was as follows:

      

The trial balance of Zach Ltd. as at 31 December 1999 was as follows:


Additional information:
1. Stock at 31 December 1999 was Sh.360,000.
2. Sales returns of Sh.20,000 have been entered in the sales day book as if they were sales.
When this error was discovered, the debtors account had been corrected but the sales figure
was not rectified.
3. 5000 new shares were issued during the year at Sh.32. The proceeds have been credited to
the suspense account.
4. A fully depreciated plant which cost Sh.200,000 was sold during the year. No other entries except
bank have been made. The remaining balance on the suspense account after (2 and 3) above
represents the sale proceeds.
5. A debtor of Sh.20,000 has been declared bankrupt. A general provision is required at 5% of
debtors.
6. Rates of Sh.30,000 paid in December covering half year to 31 March 2000 have not been
entered in the books.
7. Debenture interest has not been paid.
8. Depreciation on plant is at 10% on cost and buildings at 2% on cost.
9. The directors propose to pay a dividend of Sh.2 per share and transfer Sh.20,000 to the
general reserve.
10. Corporation tax at a rate of 32'/2% on profits is estimated to be Sh.90,000.
Required:
(a)Suspense account for the year ended 3I December 1999
(b)Trading,profit and loss account for the year ended 31 December 1999.
(c) Balance sheet as at 31 December 1999.

  

Answers

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Mutiso answered the question on November 15, 2018 at 19:17

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