The following trial balance has been extracted from the ledger of Quail Limited as at 31...
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The following trial balance has been extracted from the ledger of Quail Limited as at 31 December 2020. Buildings at Cost Sales Purchases Plant and Machinery at Cost Trade Payables Wages and Salaries Computer Equipment at Cost Bank Inventory at 1 January 2020 Loan Interest Trade Receivables Retained Earnings at 1 January 2020 Long Term Loans Share Capital Motor Vehicles at Cost Operating Expenses Accumulated depreciation at 1 January 2020 Building Computer Equipment Motor Vehicles Plant and Machinery Debit £ 150,000 Cash in hand TOTALS 340,000 80,000 150,000 18,000 3,500 66,000 9,500 41,500 50,000 90,000 1,000 999,500 Credit £ 30,000 6,000 25,000 45,000 999,500 The following information is available for the year ended 31 December 2020 a) Inventory at the close of business on 31 December 2020 was £75,000 b) Wages of £9,000 for the December were due but had not been paid c) Operating expenses included £9,000 relating to the insurance for the period 1 March 2020 to 28 February 2021 d) Depreciation for the year has not yet been charged Buildings 1% straight line method Plant and Machinery 15% reducing balance method Motor Vehicles 20% reducing balance method Computer Equipment 25% reducing balance method e) Bad Debts of £500 need to be written off 655,000 45,000 115,000 53,500 25,000 REQUIRED: a) Prepare a Statement of Profit or Loss for Quail Limited for the year ended 31 December 2020. (12 marks) b) Prepare a Statement of Financial Position for Quail Limited as at 31 December 2020. (13 marks) The following trial balance has been extracted from the ledger of Quail Limited as at 31 December 2020. Buildings at Cost Sales Purchases Plant and Machinery at Cost Trade Payables Wages and Salaries Computer Equipment at Cost Bank Inventory at 1 January 2020 Loan Interest Trade Receivables Retained Earnings at 1 January 2020 Long Term Loans Share Capital Motor Vehicles at Cost Operating Expenses Accumulated depreciation at 1 January 2020 Building Computer Equipment Motor Vehicles Plant and Machinery Debit £ 150,000 Cash in hand TOTALS 340,000 80,000 150,000 18,000 3,500 66,000 9,500 41,500 50,000 90,000 1,000 999,500 Credit £ 30,000 6,000 25,000 45,000 999,500 The following information is available for the year ended 31 December 2020 a) Inventory at the close of business on 31 December 2020 was £75,000 b) Wages of £9,000 for the December were due but had not been paid c) Operating expenses included £9,000 relating to the insurance for the period 1 March 2020 to 28 February 2021 d) Depreciation for the year has not yet been charged Buildings 1% straight line method Plant and Machinery 15% reducing balance method Motor Vehicles 20% reducing balance method Computer Equipment 25% reducing balance method e) Bad Debts of £500 need to be written off 655,000 45,000 115,000 53,500 25,000 REQUIRED: a) Prepare a Statement of Profit or Loss for Quail Limited for the year ended 31 December 2020. (12 marks) b) Prepare a Statement of Financial Position for Quail Limited as at 31 December 2020. (13 marks)
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Answer rating: 100% (QA)
SOLUTION a Statement of Profit or Loss for Quail Limited for the year ended 31 December 2020 Sales 340000 Purchases 150000 Opening Inventory 45000 Clo... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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