1. Witcher plc generated the following trial balance as at 31 March 2020: 1,950,000 240,000 273,000 188,160 9,000 15,000 600 208,800 180,000 119,500 3,782,500 316,500 Leasehold land & buildings at cost as at 31 March 2019 Vehicles at cost as at 31 March 2019 Accumulated depreciation as at 31 March 2019: Leasehold land & buildings Vehicles Bank loan (due 31 May 2030) Insurance expenses Bank loan interest Distribution and selling expenses Staff pension costs Inventory as at 31 March 2019 Purchases Trade receivables Trade payables Provision for doubtful debts as at 31 March 2019 Bank and cash accounts Sales Returns Inwards Legal fees Bad debts Administration expenses Electricity Ordinary share capital as at 31 March 2019 Share premium Retained profit as at 31 March 2019 General reserve as at 31 March 2019 Dividends paid 296,830 1,500 1,800 4,947,700 160 12,260 800 53,200 11,800 750,000 100,000 96,730 380,000 150,000 7,042,920 7,042,920 Continuation of Question 1: The following information is also available: The company initially valued its inventories at a historic cost of 180,000 on 31 March 2020. After the initial valuation, however, it was noted that this inventory contains stock acquired for 10,000 that was damaged and only expected to sell for 7,000. Included within distribution and selling expenses are expenses of 2,000 relating to the three months ending 30 June 2020. It has been decided to increase the provision for doubtful debts by 20%. Bad debts and changes to the provision for doubtful debt are treated as selling and distribution expenses. Witcher plc charges depreciation as follows: - Leasehold land and building: over the lease period of 100 years on a straight line basis. Two thirds of the land and buildings relates to retail shops and warehouses, and the remaining third is office space. Vehicles: on a reducing balance basis at a rate of 40% per annum. The fleet of vehicles is only used by the sales team. The 'insurance expenses' account noted in the trial balance relates to office insurances. At the end of the financial year, 1,250 is owed to PowerHouse Ltd for electricity. The nominal value of each ordinary share is 50p. The company paid interim dividends of 0.10 per share on 1 October 2019. The payment of this dividend has already been recorded in the accounts. A final dividend of 0.20 per share is proposed. . During March 2020, Witcher plc completed a 1:6 rights issue at a price of 1.50 per share. The issue was fully subscribed and all new shares paid for but the issue has not yet been recorded in the accounts. Based on the current year's results, corporation tax was estimated at 121,500 and has not yet been provided for. REQUIRED: (a) Construct a table showing the total of each individual expense and then detailing the division of expenses between the three headings of administrative expenses, selling & distribution expenses and finance expenses. Assume that all expenses are administrative expenses unless clearly either selling & distribution expenses or finance expenses, or stated as such. (11 marks) (b) Prepare in good form, using the IAS 1 format, a statement of profit and loss and a statement of changes in equity for the year ending 31 March 2020, and a statement of financial position as at 31 March 2020. (29 marks)