Question

Trial Balance as at 30 September 2019 E'000 E'000 4% Bank loan Accumulated depreciation - Buildings at 1 October 2018 Accumulated depreciation - Equipment at 1 October 2018 Allowance for receivables at 1 October 2018 Bank Bank loan interest paid Buildings - Cost Capital at 1 October 2018 Carriage inwards Carriage outwards Cash Discounts allowed Discounts received Drawings Equipment - Cost General expenses Insurance Inventory at 1 October 2018 Light and heat Payables Purchases Receivables Returns inwards Returns outwards Sales Wages 420 75 960 160 1882 1960 Additional information: 1. The owner sold some equipment on 25 October 2019 for £30,000. He has recorded the cash received correctly but nothing else. The equipment originally cost £80,000 on 1 May 2012 2. The building cost includes land valued at £160,000. Depreciation is to be provided at 20% p.a. reducing balance on equipment and 2% p.a. straight line on buildings. A full year of depreciation is charged in the year of acquisition and none in the year of disposal. Scowen took goods out of the business, for his own use, from inventory that cost € 16,000. No entries have been made in the books of account for this transaction. 5. The insurance figure includes £9,000 for the year to 31 March 2020. 6. The bank loan was taken out in October 2010. In May 2020, 200,000 will be repaid and the remainder of the loan is to be repaid in September 2025.

Answer question C and D on the second page