The following trial balance was extracted from the books of Pit Carpets Ltd on 31 December 2021
Question:
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following information is available and has not been accounted for: | ||||
1. Following the completion of the annual stock take, it was confirmed that inventory at 31/12/21 was valued at €72,000 | ||||
2. Depreciation is to be accounted for as follows: | ||||
Land & Buildings | 2% Straight Line- To be included in Administration costs | |||
Motor Vehicles | 25% Reducing Balance- To be included im Distribution costs | |||
Plant & Equipment | 15% Straight Line- To be included in a Cost of sales | |||
3. Insurance costs (Included in Administration costs) outstanding at the year end is €5000 | ||||
4. Rates prepaid (Included in Administration costs) at the end of the year are €7,000 | ||||
5. The general allowance for bad debts is to be 2% of receivables. | ||||
6. Taxation charge for the year end 2021 is €28,000 and was outstanding at the year end. | ||||
Required:
(a) Prepare the Statement of Profit and Loss for the year ended 31st December 2021 20 marks | |||
(b) Prepare the Statement of changes in equity as at the 31st December 2021. | |||
(b) Prepare the Statement of Financial Position as at the 31st December 2021. |