Below is the Trial Balance of Happy Plc. Trial Balance as at 31 December 2020 Sales...

  

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Below is the Trial Balance of Happy Plc. Trial Balance as at 31 December 2020 Sales Sales returns Purchases Purchases returns Carriage inwards Inventory at 1 January 2020 Discount (net) Administration expenses Carriage outwards Selling and distribution expenses Premises Vehicles Fittings Cash and bank Trade receivables Interim dividend for ordinary shares Accumulated depreciation: Vehicles Accumulated depreciation: Fittings Allowance for doubtful debts Trade payables Ordinary shares of 1 each 8% Preference shares of 1 each 10% Debentures Share premium Retained profit £000 12 744 15 40 4 44 18 1818181 60 190 80 40 9 40 4 1.300 £000 900 26 62 28 3 37 80 50 40 71 3 300 Additional information: At 31 December 2020, the following had to be taken into account: • Inventory £44,000 Administration expenses payable £4,000 A year's debenture interest is due • Depreciation: Vehicles 20% on cost Depreciation: Fittings 25% on reduced balance Allowance for doubtful debts is to be 5% of trade receivables Corporation tax is to be charged at 25% of profit for the year REQUIRED: (a) A statement of profit or loss for the year ended 31 December 2020. (b) A statement of financial position as at 31 December 2020. [13] [12] [Total: 25 marks] Below is the Trial Balance of Happy Plc. Trial Balance as at 31 December 2020 Sales Sales returns Purchases Purchases returns Carriage inwards Inventory at 1 January 2020 Discount (net) Administration expenses Carriage outwards Selling and distribution expenses Premises Vehicles Fittings Cash and bank Trade receivables Interim dividend for ordinary shares Accumulated depreciation: Vehicles Accumulated depreciation: Fittings Allowance for doubtful debts Trade payables Ordinary shares of 1 each 8% Preference shares of 1 each 10% Debentures Share premium Retained profit £000 12 744 15 40 4 44 18 1818181 60 190 80 40 9 40 4 1.300 £000 900 26 62 28 3 37 80 50 40 71 3 300 Additional information: At 31 December 2020, the following had to be taken into account: • Inventory £44,000 Administration expenses payable £4,000 A year's debenture interest is due • Depreciation: Vehicles 20% on cost Depreciation: Fittings 25% on reduced balance Allowance for doubtful debts is to be 5% of trade receivables Corporation tax is to be charged at 25% of profit for the year REQUIRED: (a) A statement of profit or loss for the year ended 31 December 2020. (b) A statement of financial position as at 31 December 2020. [13] [12] [Total: 25 marks]

Answer rating: 100% (QA)

5 0 20 25 Praveen Group Consolidated Statement of financial position March 2022 ... View the full answer