After completion of the Trading Account, the following

After completion of the Trading Account, the following balances were extracted from the books of Peter Jordan plc on 30 April 2006.

Authorized and issued share capital

Ordinary shares $1 each fully paid 1 500 000

7% Preference shares of $1 each fully paid 200 000

Premises 2 300 000

Motor vehicles 500 000

Fixtures and fittings 170 000

Provision for depreciation on motor vehicles 375 000

Provision for depreciation on fixtures and fittings 102 000

Gross profit 1 620 000

Stock 204 000

Office expenses 458 000

Selling and distribution expenses 486 000

6% debentures – 2011 (issued in 2001) 100 000

Debenture interest paid 3 000

Retained profit – 1 May 2005 143 600

Debtors 132 000

Creditors 116 000

Bank Overdraft 26 800

Cash 400

Share premium 150 000

Interim dividend paid – ordinary shares 75 000

preference shares 8 000

Provision for doubtful debts 3 000

Additional information at 30 April 2006:

  1. On April 30th 2006, 60,000 preference shares were redeemed from the proceeds of 40,000 ordinary shares issued at a price of $1.50 per share. A bonus issue of 1 in every 15 shares held was then made to existing share-holders.
  1. Office expenses prepaid $8 000
  2. Selling and distribution expenses accrued $23 000
  3. Provision for doubtful debts to be maintained at 2% of debtors
  4. Depreciation to be provided as follows:

Motor vehicles 50% per annum reducing (diminishing) balance

Fixtures and fittings 20% per annum on cost

  1. The following are proposed:
  1. Final dividend of $0.10 per share to be paid to ordinary shareholders based on shares after bonus issue.
  2. Remaining dividend due is to be paid to preference shareholders on their share balance before redemption.


  1. Prepare Peter Jordan plc’s Profit and loss and appropriation Account for the year ended 30 April 2006. 
  2. Prepare Peter Jordan plc’s Balance Sheet at 30 April 2006.

How Our Website Works


It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.


All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.


Next, we match up your order details with the most qualified freelance writer in your field.


Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!


Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.