Where did the figures for Admin, depreciation, accruals, and interest come from/calculated on the profit and loss
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Where did the figures for Admin, depreciation, accruals, and interest come from/calculated on the profit and loss account from the trial balance and additional info below:
And also the figures from the balance sheet - land and buildings, computer equipment, vehicles, prepayments (just these figures):
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On 31st March 2020, South West plc produced the following trial balance- £ £ £ £ 210,000 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 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 300,000 25,000 190,000 800,000 80,000 100,000 200,000 600,000 450,000 13,000 2,758,000 400,000 100,000 50,000 70,000 100,000 3,000 225,000 1,600,000 2,758,000 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 £150,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 May 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 20% reducing balance method. • Delivery Vehicles are to be depreciated by 10% straight line method. Included in Land and Buildings cost is land that has a cost of £100,000. Depreciate is on a 15% straight line basis 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 £12,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash On 31st March 2020, South West plc produced the following trial balance- £ £ £ £ 210,000 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 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 300,000 25,000 190,000 800,000 80,000 100,000 200,000 600,000 450,000 13,000 2,758,000 400,000 100,000 50,000 70,000 100,000 3,000 225,000 1,600,000 2,758,000 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 £150,000 • Electricity is invoiced quarterly. The next quarter is due to end 31 May 2019. The average quarterly bill is £4,500 • Computer equipment is to be depreciated by 20% reducing balance method. • Delivery Vehicles are to be depreciated by 10% straight line method. Included in Land and Buildings cost is land that has a cost of £100,000. Depreciate is on a 15% straight line basis 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 £12,000 and runs from 1 August 2019-31 July 2020. The full amount was paid in cash
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Answer rating: 100% (QA)
Figures from the Profit and Loss Account Income Statement Admin Administration Expenses This figure ... 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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