The following trial balance was extracted from the books of Old NV on 31 December 2021. 

(a) Provide for: 

(i) An audit fee of €38,000. 

(ii) Depreciation of plant at 20% straight-line. 

(iii) Depreciation of vehicles at 25% reducing balance. 

(iv) The goodwill suffered an impairment in the year of €177,000. 

(v) Income tax of €562,000. 

(vi) Debenture interest of €25,000. 

(b) Closing inventory was valued at €1,125,000 at the lower of cost and net realisable value. 

(c) Administrative expenses were prepaid by €12,000. 

(d) Land was to be revalued by €50,000.

Required:

(a) Prepare a statement of profit for internal use for the year ended 31 December 2021.

(b) Prepare a statement of profit or loss and other comprehensive income for the year ended 31 December 2021 and a statement of financial position as at that date in Format 1 style of presentation.  

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Sales Returns outwards Provision for depreciation Plant Vehicles Rent receivable Trade payables Debentures Issued share capital - ordinary 1 shares Issued share capital - preference shares (treated as equity) Share premium Retained earnings Inventory Purchases Returns inwards Carriage inwards Carriage outwards Salesmen's salaries Administrative wages and salaries Land Plant (includes 362,000 acquired in 2021) Motor vehicles Goodwill Distribution costs Administrative expenses Directors' remuneration Trade receivables Cash at bank and in hand 000 825 6,263 350 13 125 800 738 100 1,562 000 1,125 1,062 290 286 375 3,875 1,750 19,539 000 12,050 313 738 375 100 738 250 3,125 625 350 875 000 19,539