Dr Cr $'000 $'000 Buildings at cost 740 Buildings, accumulated depreciation, 1 November 20X6 60 Plant at

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Dr Cr $'000 $'000 Buildings at cost 740 Buildings, accumulated depreciation, 1 November 20X6 60 Plant at cost 220 Plant, accumulated depreciation, 1 November 20X6 110 Land at cost 235 Bank balance 50 Revenue 1,800 Purchases 1,105 Discounts received 90 Returns inwards 35 Wages 180 Energy expenses 105 Inventory at 1 November 20X6 160 Trade payables 250 Trade receivables 320 Administrative expenses 80 Allowance for receivables, at 1 November 20X6 10 Directors' remuneration 70 Retained earnings at 1 November 20X6 130 10% loan notes 50 Dividend paid 30 $1 ordinary shares 650 Share premium account 80 ______ ______ 3,280 3,280

Additional information as at 31 October 20X7:
(a) Closing inventory has been counted and is valued at $75,000.
(b) The items listed below should be apportioned as indicated.
Cost of Distribution Administrative
Sales costs expenses
% % %
Discounts received – – 100
Energy expenses 40 20 40
Wages 40 25 35
Directors' remuneration – – 100
(c) An invoice of $15,000 for energy expenses for October 20X7 has not been received.
(d) Loan note interest has not been paid for the year.
(e) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables. Any expenses connected with receivables should be charged to administrative expenses.
(f) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales.
(g) Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses.
(h) Income tax has been calculated as $45,000 for the year.

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