Where did the figures for admin and depreciation come from/calculated on the profit and loss account from
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Where did the figures for admin and depreciation come from/calculated on the profit and loss account from the Trial balance and additional information below:
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On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash On 31st March 2020, North West plc produced the following trial balance- £ £ Accounts payable Accounts receivable Administration expenses Bank Land and Buildings Land and Buildings accumulated depreciation Share Capital Computer equipment Computer equipment accumulated depreciation Delivery vehicles Delivery vehicles accumulated depreciation 400,000 15,000 220,000 500,000 120,000 180,000 20,000 300,000 190,000 150,000 Inventories as at start of year Long term loan (10%) Provision for doubtful debts as at start of year Purchases Retained earnings Salaries Sales revenue Sundry expenses Accounts payable The following information is to be considered- • The provision for doubtful debts as at the end of the period is £10,000 • The inventory value at 31 March 2019 is £140,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 April 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 10% reducing balance method. • Delivery Vehicles are to be depreciated by 5% straight line method. • Included in Land and Buildings cost is land that has a cost of £60,000. Depreciate is on a 10% straight line basis 35,000 1,980,000 100,000 100,000 50,000 50,000 200,000 5,000 125,000 1,200,000 1,980,000 150,000 • Interest on loan for the year had not been paid at the year end and appropriate adjustments need to be made to include this in the accounts. • Included in Administration Expenses is Machine Insurance. The policy had a cost of £24,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash
Expert Answer:
Answer rating: 100% (QA)
1 Administration Expenses Machine Insurance Policy cost for the year 24000 Time covered by the policy within the financial year 8 months Remaining cos... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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