You are provided with the trial balance with notes for Moxy Hotels Ltd as at 30 June
Question:
You are provided with the trial balance with notes for Moxy Hotels Ltd as at 30 June 2021. You are requested to construct the appropriate final accounts for the year ended 30 June 2021.
Moxy Hotel Ltd Trial Balance at june 30 2021 | ||||
debit | credit | |||
£000's | £000's | |||
Revenue | 23100 | |||
interest on investment received | 20 | |||
Fixtures and fittings (cost) | 30000 | |||
Fixtures and fittings (acc Dep) | 5300 | |||
purchases | 6880 | |||
administration expenses | 1550 | |||
interest paid | 170 | |||
tax | 380 | |||
rent | 3375 | |||
inventories | 1 | 240 | ||
trade receivables | 1750 | |||
cash | 60 | |||
trade payable | 325 | |||
bank overdraft | 170 | |||
long term loan | 2500 | |||
share capital | 8160 | |||
retained profit | 4830 | |||
44405 | 44405 |
Notes:
1. Inventory at 30 June 2021 was £280,000.
2. Rent includes a payment up to 30 September 2021 and a prepayment of £675,000 was made in the previous financial year.
3. One of the credit customers owing 150,000 has declared the bankruptcy. Provision for Irrecoverable Debt at 2% of receivables is to be provided for.
4. Depreciation is to be charged for Fixtures and Fittings on a straight-line basis over 10 years. The residual value is estimated to be £3,500,000.
5. Included in the Administrative Expenses is £530,000 of expenditure for Telephone. This includes accrued telephone expenses of £35,000 outstanding from the previous year. The telephone bill for June 2021 has not been received and appropriate provision needs to be made.
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso