The trial balance of YMB plc at 30th June, 19_5 was as follows:

You are given the following information:
(1) There were no additions to fixed assets during the year.
(2) Freehold land and buildings are to be depreciated at the rate of 2% per annum by the straight line method, assuming no residual value.
(3) Plant and equipment are to be depreciated at the rate of 10% per annum on cost.
(4) Motor vehicles are to be depreciated at the rate of 25% per annum by the diminishing (reducing) balance method.
(5) The annual depreciation charges are to be allocated as follows:

(6) The bad debts provision is to be increased by an amount equal to one per cent of sales. The item is to be regarded as variable distribution cost.
(7) Stocks at 30th June, 19_5, valued at full manufacturing cost where appropriate, were:

(8) Prepayments and accruals at 30th June, 19_5 were:

(9) Provision is to be made for corporation tax at the rate of 50% of the net profit (advance corporation tax is to be ignored) and a final ordinary dividend of £0.02 per share.
You are required to prepare, for YMB ple’s internal purposes, the follawing historic cost financial statements:

(a) a manufacturing, trading and profit and loss account, in vertical and columnar form, for the year ended 30th June, 19_5; (22 marks)

(b) a balance sheet, in vertical and columnar form, as at that date.

Transcribed Image Text:

Ordinary shares of 0.25 each, fully paid 6% preference shares of 1.00 each, fully paid Share premium Retained profit at 30th June, 19_4 Freehold land and buildings at cost Plant and equipment at cost Motor vehicles at cost Depreciation provisions at 30th June, 19_4: freehold land and buildings plant and equipment motor vehicles Stocks at 30th June, 19_4: materials work-in-progress finished products packaging materials Provision for bad debts Trade debtors Cash at bank Dr Cr 000 000 50 000 2.000 8.000 36 120 15.000 80 000 10 000 7 200 12 500 2000 13 000 84 9 376 18 23 000 1.000 2000