This information has been taken from the company’s books as at 31 December 20X7, but the information below has not been allowed for:

(a) Inventory at 31 December 20X7 is A20,000.

(b) Plant and machinery is to be depreciated by 10%.

(c) Land and buildings is to be revalued to A150,000.

(d) General expenses includes an insurance charge of A1,000 covering the period 1 July 20X7 to 30 June 20X8.

(e) A debtor for A1,000 has gone bankrupt.
Using the quadrant format, incorporate the additional information, and prepare the closing balance sheet and income statement.

Transcribed Image Text:

Kingsad Co. Land and buildings 100,000 Share capital 100,000 Plant and machinery 50,000 Retained profits at 1 January 20X7 46,000 Purchases 70,000 Sales 150,000 Inventory at 1 January 20X7 30,000 Wages and salaries 40,000 Sales returned by customers as unacceptable 1,000 General expenses 10,000 Debtors 25,000 Creditors 30,000