1 of 2 Land & buildings: accumulated depreciation at 1st April 2020 Lease payments Plant & machinery, cost at 1st April 2020 4,653 27 45.862 Plant & machinery; accumulated depreciation at 1st April 2020 30,446 Purchases & processing costs 45,623 Retained earnings 27,846 Revenue 91,746 Share capital Share premium Trade payables: 10,000 9,000 10,126 Trade receivables 9,654 The following notes are relevant: 1) Land & Buildings Land with a cost of 10 million was included in the cost of land & buildings at 1st April 2020. Apart from the leased premises referred to below there have been no additions or disposals of land & buildings in the year. Depreciation is charged at a rate of 296 on cost of buildings. Depreciation on buildings is to be allocated 60% to Cost of Sales, 30% to Administrative Expenses and 10% to Distribution Costs 2) Lease payments for showroom premises On 1st April 2020, Moon plc entered into a contract to lease new showroom premises for a period of 5 years. The only accounting entry made to date was to record the initial rental payment of 24,000 made on 1st April 2020. The lease agreement requires four further annual payments of 24,000 on 1st April. The payments include a cleaning service element of 2,000, which is to be allocated to Distribution Costs. The appropriate discount rate is 5%. Depreciation on leased premises is to be allocated to Distribution Costs