10:03 PM ACF318 ex Jan 16 updated Question 2 Venice pic is a manufacturing company preparing s financial statements to 31 December 2015 Venice pic Trial Balance as at 31 December 2015 Debt E Credit E Share capital 1 each 1.200.000 Finance costs 10.800 Other operating income 6.840 Accumulated reserves 975,960 Bank loan 120.000 Leasehold buildings at cost 1,080.000 Plant and machinery 123,400 Accumulated depreciation Plant and 43.680 machinery 1 January 2015 Accumulated depreciation buildings 1 43.200 January 2015 Inventories 31 December 2014 2,004,000 Revenue 6.420.000 Intangible asset (indefinite life) 1,000 Receivables 66,800 Payables 74520 Bank 18.000 Income tax 2.400 Purchases 3.720.000 Other operating costs 26400 Distribution costs 610.300 Administrative expenses 1.140.000 8.4.2008.04.200 55 Notes: a) The directors estimate that the income tax charge for the year will be 270,000 b) One of Venice's customers was declared bankrupt following the reporting period but before the directors approved the financial statements. The customer owed 15,000 at the year end c) Leasehold buildings comprises business premises held on a 50 year lease. A piece of plant which had cost 67,200 on 1 January 2013 was sold on 31 December 2015 for 43.920. first met the FRSS Non-cument Assets Held for Sale and Discontinued Operations criteria as a held for sale asset on 31 December 2015 The proceeds were received on 20 January 2016 No adjustments were made in the trial balance for this disposal. The plant was being depreciated over eight years straighte Page 4 of 5 Depreciation is to be charged on the remaining plant and machinery at 20% on cost and charged to cost of sales Inventory at 31 December 2015 was 2.184.000 SECTION B Question 2 continued Required: (a) Prepare the journal entries and a brief description of the accounting treatment required to account for notes above (10 marks) (b) Prepare the Statement of profit or loss and other Comprehensive Income and Statement of Changes in Equity for Venice ple for the year ended 31 December 2015 and a Statement of Financial Position at that date in accordance with relevant accounting standards as far as the information permits SHOW ALL WORKINGS (15 marks)