DrRedPandaMaster660 The balance sheet of ABC Ltd for the years ended 31 December, 2015…The balance sheet of ABC Ltd for the years ended 31 December, 2015 and 31 December 2016 were summarized and shown below:
2016 2015
Fixed assets (at written down values) sh. Sh.
Premises 10,000 10,000
Fixtures 17,000 11,000
Vehicles 12,500 8,000
Current assets
Stock 17,000 14,000
Debtors 8,000 6,000
Bank and cash 23,000 29,500
87,500 78,500
Ordinary shares of £1 per share 60,000 50,000
Reserves
Profit and Loss 5,000 4,000
Creditors due in less than one year
Trade creditors 4,000 2,500
Taxation 1,500 1,000
Proposed dividends 2,000 1,000
Creditors due in more than one year
10% debentures 15,000 20,000
87,500 78,500
Note: The 10% debentures were redeemed and cancelled on 31 December 2016
The profit and Loss account for the year ended 31 December 2016 was summarized thus:
sh sh
Turnover 36,250
Cost of sales (21,750)
Gross profit 14,500
Profit on disposal of vehicles 700
15,200
Less:
Wages and salaries 1,600
Other (cash) expenses 3,600
Depreciation 3,500
Debenture interest 2,000
10,700
Profit before tax 4,500
Less: Tax 1,500
Profit after tax 3,000
Less: Proposed dividends (2,000)
Retained profit: for year 1,000
: Brought forward 4,000
: Carried forward 5,000
Separate bank and cash accounts for the year ended 31 December 2016 were summarised as shown below:
Bank
sh
Cash
sh
Bank
sh
Cash
sh
Opening balance b/d
Receipts from debtors
Receipts from fixed asset
disposals – vehicles
Ordinary share issue
Transfer from cash
25,300
30,500
1,200
10,000
4,650
_
4,200
3,750
500
_
Payment to trade
creditors
Wages, salaries
Other expenses
Debenture interest
Fixed assets
fixtures
vehicles
Tax paid
Dividends paid
10%debentures: redeemed
Transfer to bank
Closing balances c/d
23,250
700
2,400
2,000
7,000
8,000
1,000
1,000
5,000
21,300
900
1,200
4,650
1,700
71,650
8,450
71,650
8,450
Opening balances b/d
21,300
1700
Required: Prepare the cash flow statement for ABC Ltd for the year ended 31st December 2016 according to the International Accounting Standard 7.BusinessBusiness – Other
