The following figures have been extracted from the accounting records of Textiles Limited, a cloth manufacturer and
Question:
The following figures have been extracted from the accounting records of Textiles Limited, a cloth manufacturer and wholesaler, at 30 June 2019:
Additional information
• Audit and accountancy fees (to be charged to administration expenses) of £10,000 have not been taken into account at 30 June 2019.
• Administration expenses include payments for insurance premiums of £30,000 for the 12 months to 31 December 2019.
• Since the year end, a customer of Textiles Limited has gone into liquidation owing £50,000. Textiles Limited does not expect to receive any cash from this trade receivable.
• The allowance for receivables is to be adjusted to 4% of trade receivables after deducting known irrecoverable debts. All irrecoverable debts and the movement in the allowance for receivables are to be charged to administration expenses.
• Depreciation for the year to 30 June 2019 still has to be calculated. Plant and machinery is to be depreciated at 20% straight line and motor vehicles are to be depreciated at 25% reducing balance. Plant and machinery depreciation should be charged to cost of sales and motor vehicle depreciation should be charged to distribution and selling expenses.
• Taxation on the profit for the year is to be calculated as 25% of the profit before tax.
Required
Prepare the statement of profit or loss for the year ended 30 June 2019 and the statement of financial position at that date in a form suitable for publication in accordance with International Financial Reporting Standards.
Step by Step Answer:
Textiles Limited statement of profit or loss for the year ended 30 June 2019 Textiles Limited statement of financial position at 30 June 2019 Workings and notes The audit and accountancy fees for the ...View the full answer
