The trial balance for X plc at 31/07/X9 is as follows: Revenue Purchases Sales returns Purchase...

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The trial balance for X plc at 31/07/X9 is as follows: Revenue Purchases Sales returns Purchase returns Administrative costs Distribution costs Interest on bank loan paid Interim dividend declared and paid Land at cost Buildings at cost Buildings depreciation (at 1 August 20X8) Plant and Machinery at cost Plant and Machinery depreciation (at 1 August 20X8) Motor vehicles at cost Motor vehicles depreciation (at 1 August 20X8) Trade payables Trade receivables Trade receivables provision Inventory (at 1 August 20X8) Bank Bank loan (to be repaid 30 June 20Y5) Ordinary shares of £1 each Share premium Retained earnings (at 1 August 20X8) Notes to the Trial Balance 1. Depreciation is to be charged on the following basis: a. Buildings - 20 years straight line DR £'000 2,387 58 1,756 694 42 180 1,900 3,450 1,560 925 1,640 525 226 15,343 CR £'000 6,219 23 985 488 278 495 34 1,400 1,800 1,500 2,121 15,343 b. Plant and machinery - 25 years straight line c. Motor vehicles -15% reducing balance All depreciation is charged to administrative costs. 2. Year end inventory is valued at £525,000. However it has been discovered that there are 3,000 items included within year end inventory which have been damaged. These items cost £46 but will require repair work costing £29 per item in order to be saleable for £63. 3. Administrative costs include a payment of £219,000 for premises insurance, which covered the period 1 January 20X9 to 31 December 20X9. 4. Trade receivables includes some debts which are now irrecoverable, amounting to £37,000, and therefore X pic wishes to write these debts off. The company also wishes to increase the general provision to 3% of receivables. 5. Interest on the bank loan is payable at 6% in half yearly instalments. X plc has not yet accounting for the second payment of interest on the loan. Requirement: Using the information provided, complete the profit or loss expenses working below. (Round all calculations to the nearest thousand.) W1 Profit or loss expenses Purchases Purchase returns Balances per TB Opening inventory Closing inventory Total depreciation expense Prepayment Bad debt write off COS Admin. Distrib. Finance £'000 E'000 £¹000 £'000 2387 -23 525 1756 694 42 Cost of receivables provision Loan interest accrued (Enter each value with no £ sign, comma or decimal places. Use a minus sign where appropriate.) The trial balance for X plc at 31/07/X9 is as follows: Revenue Purchases Sales returns Purchase returns Administrative costs Distribution costs Interest on bank loan paid Interim dividend declared and paid Land at cost Buildings at cost Buildings depreciation (at 1 August 20X8) Plant and Machinery at cost Plant and Machinery depreciation (at 1 August 20X8) Motor vehicles at cost Motor vehicles depreciation (at 1 August 20X8) Trade payables Trade receivables Trade receivables provision Inventory (at 1 August 20X8) Bank Bank loan (to be repaid 30 June 20Y5) Ordinary shares of £1 each Share premium Retained earnings (at 1 August 20X8) Notes to the Trial Balance 1. Depreciation is to be charged on the following basis: a. Buildings - 20 years straight line DR £'000 2,387 58 1,756 694 42 180 1,900 3,450 1,560 925 1,640 525 226 15,343 CR £'000 6,219 23 985 488 278 495 34 1,400 1,800 1,500 2,121 15,343 b. Plant and machinery - 25 years straight line c. Motor vehicles -15% reducing balance All depreciation is charged to administrative costs. 2. Year end inventory is valued at £525,000. However it has been discovered that there are 3,000 items included within year end inventory which have been damaged. These items cost £46 but will require repair work costing £29 per item in order to be saleable for £63. 3. Administrative costs include a payment of £219,000 for premises insurance, which covered the period 1 January 20X9 to 31 December 20X9. 4. Trade receivables includes some debts which are now irrecoverable, amounting to £37,000, and therefore X pic wishes to write these debts off. The company also wishes to increase the general provision to 3% of receivables. 5. Interest on the bank loan is payable at 6% in half yearly instalments. X plc has not yet accounting for the second payment of interest on the loan. Requirement: Using the information provided, complete the profit or loss expenses working below. (Round all calculations to the nearest thousand.) W1 Profit or loss expenses Purchases Purchase returns Balances per TB Opening inventory Closing inventory Total depreciation expense Prepayment Bad debt write off COS Admin. Distrib. Finance £'000 E'000 £¹000 £'000 2387 -23 525 1756 694 42 Cost of receivables provision Loan interest accrued (Enter each value with no £ sign, comma or decimal places. Use a minus sign where appropriate.)

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Closing Inventory Depreciation prepayment of insurn... View the full answer