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    Section B Answer Question 1 and Not More Than One Further Question From This Section. Question 1

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    Kəmalə Aslanzadə
    1. The document provides a trial balance for Jagger plc for the year ended 31 March 2017 along with additional financial information. 2. It asks to prepare Jagger plc's income statement, statement of changes in equity, and statement of financial position based on the information given, and to explain the different accounting treatments of preference shares vs equity shares and related dividends. 3. The key financial information includes non-current asset balances and depreciation rates, additional expenses incurred after the trial balance date, inventory balances, a debt that became partially uncollectible, an estimate of current tax expense, details of a share issuance, and a proposed final equity dividend.

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    Section B Answer Question 1 and Not More Than One Further Question From This Section. Question 1

    Uploaded by

    Kəmalə Aslanzadə
    49 views3 pages
    1. The document provides a trial balance for Jagger plc for the year ended 31 March 2017 along with additional financial information. 2. It asks to prepare Jagger plc's income statement, statement of changes in equity, and statement of financial position based on the information given, and to explain the different accounting treatments of preference shares vs equity shares and related dividends. 3. The key financial information includes non-current asset balances and depreciation rates, additional expenses incurred after the trial balance date, inventory balances, a debt that became partially uncollectible, an estimate of current tax expense, details of a share issuance, and a proposed final equity dividend.

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    UNEC__1624106103

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    1. The document provides a trial balance for Jagger plc for the year ended 31 March 2017 along with additional financial information. 2. It asks to prepare Jagger plc's income statement, statement of changes in equity, and statement of financial position based on the information given, and to explain the different accounting treatments of preference shares vs equity shares and related dividends. 3. The key financial information includes non-current asset balances and depreciation rates, additional expenses incurred after the trial balance date, inventory balances, a debt that became partially uncollectible, an estimate of current tax expense, details of a share issuance, and a proposed final equity dividend.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    49 views3 pages

    Section B Answer Question 1 and Not More Than One Further Question From This Section. Question 1

    Uploaded by

    Kəmalə Aslanzadə
    1. The document provides a trial balance for Jagger plc for the year ended 31 March 2017 along with additional financial information. 2. It asks to prepare Jagger plc's income statement, statement of changes in equity, and statement of financial position based on the information given, and to explain the different accounting treatments of preference shares vs equity shares and related dividends. 3. The key financial information includes non-current asset balances and depreciation rates, additional expenses incurred after the trial balance date, inventory balances, a debt that became partially uncollectible, an estimate of current tax expense, details of a share issuance, and a proposed final equity dividend.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    SECTION B

    Answer question 1 and not more than one further question from this section. Question

    1.
    Jagger plc prepares its financial statements for the year ended 31 March. The company has
    extracted the following trial balance at 31 March 2017:

    £000 £000
    6% Preference Shares (redeemable 2020) 10,250
    Trade payables 8,120
    Trade receivables 9,930
    Accumulated depreciation at 1 April 2016:
    Plant & Equipment 6,460
    Vehicles 1,670
    Administrative expenses 16,141
    Bank 456
    Purchases returns 106
    Distribution costs 9,060
    Dividends paid 5,800
    Dividends received 850
    Equity shares, 20p each, fully paid 19,000
    Dividend paid on Preference Shares 615
    Inventories at 1 April 2016 4,852
    Investments non-current 15,000
    Plant & equipment, at cost 27,315
    Proceeds from issue of share capital 1,500
    Provision for doubtful debts at 1 April 2016 600
    Purchases 94,160
    Retained earnings at 1 April 2016 13,677
    Sales 125,900
    Taxation 4
    Vehicles, at cost 5,720

    £188,59 £188,593
    3

    The following further information is available.

    1. Non-current assets are to be depreciated as follows:


    Plant & equipment 20% per annum straight-line
    Vehicles 25% per annum reducing balance

    2. An invoice for telephone charges for the quarter ended 1 May 2017 for £15,000 was
    received by the company after the above trial balance was extracted. Telephone expenses
    are included in administrative expenses.

    3. The company paid £156,000 insurance premiums for the year 1 November 2016 to 30
    October 2017. This amount is included in administrative expenses.
    Question continues on next page
    4. The closing inventory at 31 March 2017 was £5,180,000.

    5. Subsequent to drawing up the trial balance, the company has been


    informed that a major customer owing £348,000 has gone into
    administration, and Jagger plc will receive only 25% of the amount
    owing. Jagger plc has also decided to change its provision for doubtful
    debts to 5% of the remainder of receivables balances.

    6. Tax due for the year to 31 March 2017 is estimated at £30,000. The
    taxation balance in the trial balance relates to an overestimate of the tax
    charge in the year ended 31 March 2016.

    7. On 1 October 2016, Jagger plc issued 5,000,000 20p equity shares at


    a premium. The proc
    share capital account’.

    8. The Directors have proposed a final equity dividend for the year ended
    31 March 2017 div of 5p per share payable in May 2017.

    Required:
    (a) Prepare Jagger plc’s (£000s to one place of decimals):

    i) Income Statement for the year ended 31 March 2017.


    (10 marks)

    ii) Statement of Changes in Equity for the year ended 31 March 2017.
    (4 marks)

    iii) Statement of Financial Position at 31 March 2017


    . (10 marks)

    (b) Explain, and justify, the different treatments of preference shares and
    equity and the related dividends in the financial statements.
    (6 marks)

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