Select Ltd is registered with an authorised capital of 300,000 ordinary shares of £1. The following.

Select Ltd is registered with an authorised
capital of 300,000 ordinary shares of £1. The following trial balance was
extracted from the books of the company on 31 March 2016, after the preparation
of the trading account;

Required:

Prepare the profit and loss account section
of the statement of profit or loss and a statement of changes in equity for of
the company for the year ending 31 March 2016, and statement of financial
position as at that date, after taking into account the following adjustments:

1.       The allowance for doubtful debtors is to be
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Select Ltd is registered with an authorised
capital of 300,000 ordinary shares of £1. The following trial balance was
extracted from the books of the company on 31 March 2016, after the preparation
of the trading account;

Required:

Prepare the profit and loss account section
of the statement of profit or loss and a statement of changes in equity for of
the company for the year ending 31 March 2016, and statement of financial
position as at that date, after taking into account the following adjustments:

1.       The allowance for doubtful debtors is to be adjusted to £700. (

2.      
Depreciation is to be provided in respect of
furniture and fittings at 10% per annum on cost.

3.      
 £25,000 is to be transferred from profit and
loss to general reserve.

4.       Provide for a proposed dividend on share capital at 10%.

Present the statement of financial position
in a form which shows the shareholders’ equity and the working capital.

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