Notes:

1. Closing inventory at 31.12.20 26,000

2. Depreciation is to be provided on plant and machineryat 10% per year, on a straight line basis

3. Depreciation is to be provided on vehicles at 10% per year, on a straight line basis

4. Depreciation is to be provided on fixtures at 20% per year, on a reducing balance basis

5. Electricity owing amounts to 6,000

6. The amount shown for rent,rates and insurance includes a prepayment of 13,200

7. A specific bad debt of 4,200 is to be written off as irrecoverable.

8. The provision for bad debts is to be adjusted to 2.5% of the adjusted closing receivables figure.

9. Apportion expenses as follows:

Depreciation on fixtures 40% distribution, 60% administration

General expenses 20% distribution, 80% administration

Rent, rates, insurance 30% distribution, 70% administration

Electricity 20% distribution, 80% administration

Depreciation on plant and machinery 50% distribution, 50% administration

Salaries 30% distribution, 70% administration

Bad and doubtful debts 100% distribution

Depreciation on vehicles 80% distribution, 20% administration

The following Trial Balance was extracted from the books of Cromwell plc on 31.12.20. Draw up an Income Statement and SOFP in Published format taking into account the notes at the foot of the Trial Balance. FAILURE TO SHOW ALL WORKINGS WILL RESULT IN MARKS BEING LOST. NOTE: FIRST DRAW UP ACCOUNTS FOR INTERNAL PURPOSES AND THEN REDUCE DOWN TO PUBLISHED FORMAT. I $ 530.000 1.320.000 12.800 70.000 44.000 26.400 Purchases Sales Bank Capital Vehicles at cost Provision for depreciation on vehicles General expenses Rent rates.Insurance Interest paid Electricity Plant & Machinery at cost Provision for depreciation on plant &machinery Salaries Trade receivables Trade payables Opening inventory Provision for doubtful debts 31.12.19 Fixtures at cost Provision for Depreciation on fixtures Bank Loan 24,000 130,000 7.000 38.000 440.000 48.000 82,000 196.200 52.000 36,000 3,600 120.000 30.000 110,000 1.660.000 1.660.000