The trial balance for United Nigeria Plc as at December 31, 2020 is given below
Purchase in debit side is N300000000
Revenue in credit side is N680000000
Inventory 1/1/2020 In debit side is N80000000
Property, plant and equipment at cost in the debit side is N950000000
Property, plant and equipment accumulated depreciation in credit side is N390000000
Interest on 10% loan note as at 30/6/2020 in debit side is N5000000
Discounts in debit side is N10000000 while is credit side is N8000000
Distribution expenses in debit side is N80000000
Retained earning in credit side is N252000000
Administration expenses in debit side is N75000000
Bank balance in debit side is N160000000
Bad debt written off in debit side N12000000
12% preference shares in credit side is N120000000
10% loan notes in credit side is N100000000
Ordinary share capital 50kobo each in credit side is N150000000
Share premium in credit side is N90000000
Returns in debit side is N8000000 while in credit side is N6000000
Allowances for trade receivable in credit side is N10000000
Trade receivable in debit side is N360000000
Trade payables in credit side is N234000000
The total balance in debit side is N2040000000
The total balance in credit side is N2040000000
Additional information:
1. Inventories at the end of the year were #120,000,000. Included in the closing Inventories was damaged item with a cost of N30,000,000 which The trial balance for United Nigeria Plc as at December 31, 2020 is given below
Purchase in debit side is N300000000
Revenue in credit side is N680000000
Inventory 1/1/2020 In debit side is N80000000
Property, plant and equipment at cost in the debit side is N950000000
Property, plant and equipment accumulated depreciation in credit side is N390000000
Interest on 10% loan note as at 30/6/2020 in debit side is N5000000
Discounts in debit side is N10000000 while is credit side is N8000000
Distribution expenses in debit side is N80000000
Retained earning in credit side is N252000000
Administration expenses in debit side is N75000000
Bank balance in debit side is N160000000
Bad debt written off in debit side N12000000
12% preference shares in credit side is N120000000
10% loan notes in credit side is N100000000
Ordinary share capital 50kobo each in credit side is N150000000
Share premium in credit side is N90000000
Returns in debit side is N8000000 while in credit side is N6000000
Allowances for trade receivable in credit side is N10000000
Trade receivable in debit side is N360000000
Trade payables in credit side is N234000000
The total balance in debit side is N2040000000
The total balance in credit side is N2040000000
Additional information:
1. Inventories at the end of the year were #120,000,000. Included in the closing Inventories was damaged item with a cost of N30,000,000 which has a net realisable value of N18.000,000,
2. Additional ordinary shares of 50,000,000 were issued and fully paid for at 80 kobo per share, this is yet to be recorded in the trial balance.
3. Interest on 10% loan notes is outstanding and dividends on 12% preference shares were paid on December 11, 2020. Existing ordinary shareholders were paid a dividend of 5 kobo per share on December 31. 2020. These were yet to be recorded in the trial balance
4. Allowances for trade receivables are to be increased to 15% per annum. Depreciation is charged on plant and equipment (PPE) at the rate of 15% on reducing balance basis
5. N5.000.000 administrative expenses were outstanding and N25,000,000 company income tax is estimated for the year. Depreciation is charged in administrative expenses
You are required to prepare the followings:
I. Statement of comprehensive income of United Nigeria PLC for the year ended December 31, 2020.
II. Statement of changes in equity for the year ended December 31, 2020.
III. Statement of financial position as at December 31, 2020.
