1. Jupiter plc generated the following trial balance as at 31 March 2021:

	£		£
Ordinary share capital as at 31 March 2020			300,000
Share premium as at 31 March 2020			80,000
Retained earnings as at 31 March 2020			34,260
4% Bonds			210,000
Land & buildings at cost as at 31 March 2020	1,120,000
Fixtures & fittings at cost as at 31 March 2020	150,000
Vehicles at cost as at 31 March 2020	250,000
Accumulated depreciation as at 31 March 2020:
Land & buildings			156,800
Fixtures & fittings			78,640
Vehicles			100,000
Administration expenses	53,200
Bank and cash accounts	2,610
Bond interest paid	7,700
Delivery department expenses	15,000
Inventory as at 31 March 2020	35,682
Legal fees	77,850
Lighting and heating	53,386
Office costs	265,840
Provision for doubtful debts as at 31 March 2020			945
Purchases	370,610
Sales returns	2,650
Salaries and wages	262,480
Sales			1,709,165
Trade payables			23,738
Trade receivables	26,540
	2,693,548		2,693,548

The following information is also available:

• The nominal value of Jupiter plc’s shares is 50p
• During the year, the company completed a 1 for 3 rights issue at a price of 60p per share and these were fully paid up at the time of issue. This right issue has not yet been recorded in the accounts.
• There is an outstanding amount due for bond interest which is charged at 4% per annum.
• On 31 March 2021, Jazz Saturn paid the company £300. Previously the company had recorded Jazz Saturn as a bad debt. This payment by Jazz Saturn has not yet been recorded in the accounts.
• Jupiter plc uses an aging schedule to estimate the value of doubtful debts. It is assumed that all debts incurred in the last 30 days will be paid; 20% of trade receivables which have been with the company between 30 and 60 days are considered as doubtful debts; and the amount considered as doubtful debt rises to 50% of trade receivables which have been in the business 60 days or more. Of the current trade receivables: £25,050 were from sales made in the 30 days running up to 31 March 2021, £1,000 are from sales made between 30 and 60 days before the year end, and the rest are from sales made 60 days or more before the year end.
• Bad debts and changes to the provision for doubtful debt are treated as selling and distribution expenses.
• The land and buildings are depreciated at 1% on cost, the fixtures and fittings are depreciated at 20% reducing balance method and vehicles are depreciated using 20% straight line method. The vehicles are used solely by the sales team. It is company policy to charge a full year’s depreciation in the year of acquisition and no depreciation in the year of disposal.
• A stock take on 31 March 2021 reveals the company retains inventory with a value of £56,840
• Included within office costs are expenses of £800 relating to April 2021.
• At the year end, £7,400 is still owing for lighting and heating.
• The bank statement for February 2021 shows an interest charge of £50 for the account being overdrawn in January. This is currently recorded within legal fees.
• Corporation tax was estimated at a rate of 20% of profit before tax.
• Salaries, lighting & heating, depreciation for land & buildings, and depreciation for fixtures and fittings are shared equally between administrative and distribution costs.

REQUIRED:

1. Construct a table showing in the first column the total of each individual expense listed in the trial balance and any other different expenses revealed by the additional information. Then use this table to divide the total of each expense amount between the three headings of administrative expenses, selling & distribution expenses and finance expenses as appropriate and find the totals for each of those headings. Assume that all expenses are administrative expenses unless clearly either selling & distribution expenses or finance expenses, or stated as such.

2. Prepare in good form, using the IAS 1 format, a statement of profit and loss and a statement of changes in equity for the year ending 31 March 2021, and a statement of financial position as at 31 March 2021.