... LTD TRIAL BALANCE AT 31 DECEMBER 2022


Folio
Dr
Cr

M
M

Ordinary share capital


100, 000

Preference share capital (6% dividends)


100, 000

Share premium


200, 000

Retained profit


105, 000

Loan from bank (15% interest)


80, 000

Debenture loan (12% interest)


100, 000

Land and buildings

510, 000


Machinery

100, 000


Accumulated provision for depreciation - Machinery


40, 000

Inventory

70, 000


Accounts receivable

154, 000


Bank

360, 000


Accounts payable


121, 000

Taxation

54, 000


Sales


1, 860, 000

Cost of sales

930, 000


Administration expenses

72, 000


Marketing expenses

63, 000


Directors salaries

180, 000


Telephone expenses

18, 000


Employees salaries

334, 000


Light and water expenses

25, 000


Depreciation machinery

20, 000


Disposal of fixed assets


210, 000

Preference dividends (paid)

6, 000


Ordinary dividends (paid)

20, 000
.

2, 916, 000
2, 916, 000


Adjusting information:
Lesedi Ltd borrowed M80, 000 from the bank on 2nd July 2022 at an interest rate of 15% pa.
The directors salaries for the year are M200, 000.
Land and buildings which originally cost M150, 000 were sold for M210, 000. The directors wishes to transfer the gain on sale to reserve.
The taxation expense for the year (incurred) is M63, 000.
An ordinary interim dividend of M20, 000 was declared at the end of June 2022 and paid during July 2022. The final or yearend dividend to be paid at end of the year to the directors is M50, 000.

Required:
Prepare Trading, profit and loss account for the period and (12.5 marks)
Balance sheet as at that date after taking account of all the given adjustments