The following trial balance was extracted from the books of Leisureplay plc, a listed company, for the year ended 31 December 2012.

(a) Inventories as at 31 December 2012 are £12,000

(b) Depreciation is to be charged as follows:

(i) Freehold premises 2% on cost

(ii) Motor vehicles 10% on cost

(iii) Furniture and fi ttings 5% on cost

(c) There is the following payment in advance: General expenses £500

(d) There are the following accrued expenses: Business rates £300 Advertising £550 Auditors’ fees £250

(e) Authorised ordinary share capital is £1,000,000 £1 shares, and authorised preference share capital is 100,000 £1 shares.

(f) Taxation has been calculated as £58,500.

(g) Debenture interest should be charged at 10 %.

(h) Provision for the impairment of receivables is increased to £1,600 and a bad debt of £400 is to be written off. You should calculate out the provision first.

(i) The ordinary and preference dividends should be deducted from retained earnings.

Required:

Prepare for internal management purposes the income statement for Leisureplay plc for the year ended 31 December 2012 and statement of fi nancial position as at 31 December 2012 using International Financial Reporting Standards.

Transcribed Image Text:

Ordinary share capital (1 each) Preference share capital (1 each) Debentures Retained earnings as at 1 January 2012 Share premium account Revaluation reserve General reserve Freehold premises at cost Motor vehicles at cost 000 000 700,000 80,000 412,000 98,000 62,000 70,000 18,000 1,550,000 18,000 Furniture and fittings at cost 8,000 Freehold premises accumulated depreciation as at 1 January 2012 Motor vehicles accumulated depreciation as at 1 January 2012 Furniture and fittings accumulated 102,000 9,350 depreciation as at 1 January 2012 1,100 Inventories as at 1 January 2012 5,000 Cash at bank 183,550 Provision for the impairment of receivables 1,000 Purchases/revenue 500,000 800,000