Leaving Cert Accounting Company Profit & Loss: Company Profit and Loss

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Question

Company Profit and Loss

The following information was extracted from the books of Doyle Ltd:

- Doyle Ltd has an Authorised Capital of 900,000 Ordinary Shares at €1 each and 400,000 5% Preference Shares at €1 each.
- The company has already issued 600,000 of the Ordinary Shares and 200,000 5% Preference Shares.
- On 01/01/2011 the Company’s General Reserve Account showed a balance of €95,000.
- Doyle Ltd had carried forward a profit of €220,000 from 2010 and the accounts showed profits of €180,000 before interest and taxation for the year ended 31/12/2011.
- During the year a total dividend of 9c per ordinary share was paid to the Ordinary Shareholders and the total preference dividend for the year was paid to the Preference Shareholders.

On the 31/12/2011 the directors recommended that:

(i) Interest of €24,000 to be provided for.

(ii) Taxation of €63,000 to be provided for.

(iii) The General Reserve to be increased by €15,000.

You are required to:

(a) Show the Profit and Loss Account for the year ended 31/12/2011.

(b) Prepare a Balance Sheet showing the relevant accounts after making the above provisions and appropriations.

Company Profit and Loss The following information was extracted from the books of Doyle Ltd: - Doyle Ltd has an Authorised Capital of 900,000 Ordinary Shares at €1 each and 400,000 5% Preference Shares at €1 each - Leaving Cert Accounting - Question 2 - 2012

Worked Solution & Example Answer:Company Profit and Loss The following information was extracted from the books of Doyle Ltd: - Doyle Ltd has an Authorised Capital of 900,000 Ordinary Shares at €1 each and 400,000 5% Preference Shares at €1 each - Leaving Cert Accounting - Question 2 - 2012

Show the Profit and Loss Account for the year ended 31/12/2011.

Profit and Loss Account of Doyle Ltd.

Net Profit for the Year

Deductions

Profit After Taxation

Appropriations

Retained Profit

Prepare a Balance Sheet showing the relevant accounts after making the above provisions and appropriations.

Balance Sheet Extract as at 31/12/2011

Fixed Assets/Current Assets

Creditors: amounts falling due within 1 year

Total Current Liabilities

Net Current Assets

Financed By:

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