The following trial balance was extracted from the books of Cuddly Toy Ltd as at 31.12.X5

The following information has not yet been accounted for:
• Closing inventory 31.12.X5 is valued at £560,000.
• Depreciation is to be charged as follows:
– 2% straight line on buildings – 20% straight line on equipment – 25% reducing balance on vehicles.
• Assets are used as follows:
– buildings: 50% cost of sales, 25% distribution and 25% administration – equipment: all cost of sales – vehicles: all distribution.
• Taxation to be charged for the year is estimated at £200,000.
• An interim dividend has been declared but not yet paid of 6p per share.
Prepare the published income statement, statement of changes in equity and balance sheet for the company as at 31.12.X5.

Transcribed Image Text:

Dr Cr 000 000 Sales 1,562 Inventory 1.1.X5 660 Purchases 885 Land 1,010 Buildings 980 Equipment 55 Vehicles 72 Depreciation: Buildings 390 Equipment 18 Vehicles 25 Debtors and creditors 180 235 Bank 121 1 ordinary shares Share premium 900 350 Distribution expenses 98 Administration expenses 24 Accumulated profits 1.1.X5 185 5% debentures 420 4,085 4,085