Question

62. Preparation of internal and published financial statements Required: Prepare for the year ended 30 June 20x6 the statement of comprehensive income changes in equity and statement of financial position. * Question 3 Basalt plc is a wholesaler. The following is its trial balance as at 31 December 20X0. Dr £000 GE00 Ordinary share capital: £l shares Share premium General reserve Retained earnings as at January 20X0 Inventory as at January 20X0 Sales Purchases Administrative costs Distribution costs Plant and machinery-cost Plant and machinery-provision for depreciation Returns outwards Returns inwards Carriage inwards Warehouse wages Salesmen's salaries Administrative wages and salaries Hire of motor vehicles Directors' remuneration Rent receivable Trade receivables Cash at bank Trade payables The following additional information is supplied © Depreciate plant and machinery 20% on straight-line basis Inventory at 31 December 20X0 is £90,000. (m) Accrue auditors' remuneration 22.000. () Income tax for the year will be £58.000 payable October 20XI. It is estimated that 7/11 of the plant and machinery is used in connection with distribution remainder for administration. The motor vehicle costs should be allocated to distribution Required: Prepare a statement of income and statement of financial position in a form that complies wir No notes to the accounts are required. a form that complies with AS

Answer 1

Statement of Financial Position 31-12- 2000 (£ooo) Amourt Assets (food Liabilities Amount Amount Amount Non-Courent Assets Plant & Machinery 220 ordinary Share Capital El Shares Shane Premium General Reserve Opening Retained Earnings 55 (t) Profit for the Year 81 PEM- Provision for Dep. 49 (t) Dep. for the year 44 Current Assets Stock at 31-12-2000 Cash at Bank Trade Receivables 90 62 326 Current fiabilities Trade Payables Auditor's Remureration Income Tax Payable Rent Recoivable 693

Statement of Income For the Year for Basalt ane. Ended 31-12-2002 Foop (£000 Particulars Amount Amount Particulars Amount Amount 962 66 500 27 sales Retwen outward Closing Inventory 6 44 Opening Inventory Purchases. Retorn Inward Carriage Inward Administrative Cost Distribution Cost Depreciation on P&M [ 220 x 204.] Warehouse wages Sales's man Salaries Admin. Wages de Salaries Hire of Motor Vehicles Director Ramuneration Auditor's Remuneration Income Taxe Net Profit (Bal-fig) 101 64 60 BV 1077 1077