1. The Bookkeeper of General Supplies Ltd has presented you with the following trial balance for...

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1. The Bookkeeper of General Supplies Ltd has presented you with the following trial balance for the 12 months ended 31 December 2021 Debit (£) Credit (£) Finance Income 4,000 Finance expense 16,000 Share Capital 347,900 Bank 2,000 Opening Inventory 90,000 Machinery at cost 120,000 Buildings at cost 750,000 Provision for Depreciation - Buildings 100,000 Provision for Depreciation - Machinery 25,000 Legal expenses 7,000 Heating and Lighting 10,000 Long Term Loans 200,000 Rent and Rates 24,780 Insurance 17,520 Postage and Stationery 6,000 Share Premium 100,000 Sales Revenue 900,000 Retained Profits 50,000 Travelling Expenses 5,000 Motor Running Expenses 8,700 Salaries and Wages 150,000 Bad Debt 4,000 Purchases 560,000 Revaluation Reserve 100,000 Provision for bad debts 3,000 Taxation 12,900 Trade Receivables (debtors) 400,000 Trade Payables (creditors) 350,000 2,181,900 2,181,900 Page 3 of 6 Additionally, you are provided with the following information: a. Depreciation is yet to be provided as follows: Buildings: Machinery: 5% reducing balance. 25% straight line. b. The bad debt provision is to be adjusted to 1% of outstanding trade receivables. c. Insurance for the year ended 31 December 2021 was £16,000 so a prepayment has been made. d. An invoice for rates for the three months to 31 December 2021 totalling £3,220 has not been paid and not entered in the accounting records. An accrual is required. e. Closing Inventory was £125,000. Requirements: a) Adjust the Trial Balance to take account of the additional information. marks) b) Prepare an Income Statement. marks) c) Prepare a Balance Sheet (Statement of Financial Position). marks) (20 (20 (20 [Total 60 marks] 1. The Bookkeeper of General Supplies Ltd has presented you with the following trial balance for the 12 months ended 31 December 2021 Debit (£) Credit (£) Finance Income 4,000 Finance expense 16,000 Share Capital 347,900 Bank 2,000 Opening Inventory 90,000 Machinery at cost 120,000 Buildings at cost 750,000 Provision for Depreciation - Buildings 100,000 Provision for Depreciation - Machinery 25,000 Legal expenses 7,000 Heating and Lighting 10,000 Long Term Loans 200,000 Rent and Rates 24,780 Insurance 17,520 Postage and Stationery 6,000 Share Premium 100,000 Sales Revenue 900,000 Retained Profits 50,000 Travelling Expenses 5,000 Motor Running Expenses 8,700 Salaries and Wages 150,000 Bad Debt 4,000 Purchases 560,000 Revaluation Reserve 100,000 Provision for bad debts 3,000 Taxation 12,900 Trade Receivables (debtors) 400,000 Trade Payables (creditors) 350,000 2,181,900 2,181,900 Page 3 of 6 Additionally, you are provided with the following information: a. Depreciation is yet to be provided as follows: Buildings: Machinery: 5% reducing balance. 25% straight line. b. The bad debt provision is to be adjusted to 1% of outstanding trade receivables. c. Insurance for the year ended 31 December 2021 was £16,000 so a prepayment has been made. d. An invoice for rates for the three months to 31 December 2021 totalling £3,220 has not been paid and not entered in the accounting records. An accrual is required. e. Closing Inventory was £125,000. Requirements: a) Adjust the Trial Balance to take account of the additional information. marks) b) Prepare an Income Statement. marks) c) Prepare a Balance Sheet (Statement of Financial Position). marks) (20 (20 (20 [Total 60 marks]

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a General Supplies Limited Adjusted Trial Dalance As on December 31 2021 Credit Accounts Finance Inc... View the full answer